In a bid to attract private investment, the Planning Commission has recommended a profit-oriented model for the higher education sector in the country. According to the commission, the current not-for-profit tag in the education sector must be re-examined. The aim is to widen the enrollment numbers in higher education and help the government achieve 30% gross enrollment ratio.
?The not-for-profit tag in higher education sector should, perhaps, be re-examined in a more pragmatic manner so as to ensure quality without losing focus on expansion and equity. Deserving private institutions could benefit with access to public funds in the form of loans, financial aid for students and competitive funding for research,? the commission has recommended.
At present, only not-for-profit entities like section 25 companies, charitable trusts and societies can establish and run universities in the country.
However, the ministry of human resource development (MHRD) has not accepted the idea as education has traditionally been a not-for-profit activity in the country. Interestingly, the ministry had earlier asked not-for-profit institutes to keep their accounts as per the ICAI norms. ?This is still at the planning stage and the ministry has refused the idea as education is a social good. There is nothing concrete at present and is still in the plan document,? said a ministry official.
Currently, 14.6 million students are enrolled in the higher education sector an additional capacity of about 25 million seats is required over the next decade requiring an investment of R10 lakh crore by 2020. The private sector, which accounts for 52% of the total enrollment, would invest R50,000 crore of this per year, say Ernst and Young estimates. The idea, however, has gone well well with industry which till now was feeling that the not-for-profit route is a bottleneck for investment in the sector.
?Instead of getting caught in the web for-profit or not-for-profit, we must avoid profiteering. This can happen if there is transparent functioning of these institutes- something which societies and trusts can?t promise. Besides, the system should raise capital and attract entrepreneurial energy,? added Anand Sudarshan, industry veteran and former vice chairman and MD of Manipal Global Education.