Education to 'officially' become a business venture?

06 October, 2012

Education as a business venture may get the official nod soon and the scope of education in the government sector may shrink further. According to latest reports, the Planning Commission has proposed that higher educational institutions-for-profit be allowed to attract investment from private sector.

THE FINAL draft for the 12th Five Year Plan has advised the union government to reconsider the current not-for-profit format to ensure quality and equity in higher education. The new plan proposal contains the following main recommendations to attract private investment in education.

- Raising of funds through public offerings of bonds and shares by private institutions and making education a proftable venture.

- Taxing higher education institutions on profit for various scholarship programmes to promote equity.

According to the plan panel, since the government aims at achieving a gross enrolment ratio (GER) of 30 per cent by the end of the 12th Five-Year Plan, which would require huge investments and this could only made possible through the above two recommendations.

These suggestions will come up before the National Development Council (NDC) for consideration in its next meeting for the approval of the 12th five-year Plan.

Currently, educational institutions are permissible as non-profit by charitable activities by trusts, societies, and bodies formed under section 25 of the Companies Act.