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In 1996, the Sahitya Akademi instituted a Fellowship in the name of the great scholar and aesthete Dr. Ananda Coomaraswamy. This is offered to scholars from Asian countries to spend periods varying from 3 to 12 months in India to pursue a literary project of their choice depending upon the nature of the project. In 2005, the Akademi while reviving this Fellowship also instituted another Fellowship in the name of Premchand to be offered to persons of eminence in the field of Culture from the SAARC countries.

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 Sahitya Akademi gives twenty four awards to literary works in the languages it has recognised and an equal number to literary translations from and into the languages of India, both after an year-long process of scrutiny, discussion and selection. The awards are meant to recognise and promote excellence in Indian writing and expanding the very definition of Indian literature by acknowledging new trends and movements. They are a reflection of current tastes and contribute to the formation of an Indian sensibility.
  
The Akademi also gives special awards called Bhasha Samman to writers /scholars for significant contribution to the languages not formally recognised by the Akademi as also for contribution to classical and medieval literature. It also has a system of electing Fellows and Honorary Fellows, as also offering Anand Coomarswamy and Premchand Fellowships.

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