The government?s dream of setting up 20 new Indian Institutes of Information Technology (IIITs) in the public-private partnership (PPP) mode may take longer to fulfill with private parties not showing enough interest in collaborating with the ministry of human resource development (MHRD). The private players are seeking greater functional autonomy and are open to increase their share of funding, which currently stands at 15% against 50% central government funding and 35% state government funding.
??We are basically advocating greater freedom for private players and less government interference with greater private participation. This will not only increase the sense of ownership but also reduce financial and academic support from the government,? said an official from the Confederation of Indian Industry (CII).
During the first four years of setting up each IIIT, the Centre will provide R10 crore each year. Each IIIT will have to meet its entire operating expenditure on its own within five years of its commencement. The state government concerned will provide 50-100 acre of land free-of-cost.
?In addition to sharing 15% of the capital cost (7.5% in the case of north-eastern states), the participating companies were expected to contribute towards research labs and projects, internship, and faculty chairs from time to time. The minimum contribution from an industry partner should be R2 crore,? according to the ministry.
Nasscom, the apex body for the IT industry, too had suggested private organisations should play an equal or slightly greater role in bringing investment for the new IIITs. At present, there are four IIITs in the country ? in Gwalior, Jabalpur, Allahabad and Kancheepuram.
??Earlier, the governance structure was determined by the equity model but later, the financial contribution and governance structure were delinked,? said Nasscom president Som Mittal.
According to CII, the project cost for 300 seats in case of 85% private contribution would be R75 crore excluding land cost while the current model has projected the capital cost at R128 crore.
As for the financial contribution, CII has suggested equity of R30 crore and debt of R55 crore if the private sector’s share in increased to 85% as against equity of R128 crore in case of 15% participation.
??We can think about increased financial contribution but that does not mean that government representation will end because these are institutes of national importance and there is accountability,? said an MHRD official.
On the governance front, the ministry had suggested 25% of the total seats for the industry partners on the board of governors. ??We only want land and the government’s name in the new IIITs. Funding is not an issue with the private companies,? the CII official added.