India: Enabling Investments in Education

This post was written by Rahul Choudaha, who runs Dr. Education.

India's Human Resources Minster Mr. Kapil Sibal aims to increase Gross Enrollment Ratio (GER) in higher education from current 12% to 30% by 2020.

Mr. Sibal, who is control of the country's education portfolio, says that this translates into a need for 14,000 additional general colleges, 12,775 professional institutes and 269 universities over the next 11 years. (Indian higher education system follows the model of multiple independent colleges affiliated to a common degree-awarding university). Government understands that it would not be able to achieve it without private investment. To achieve this scale of expansion with speed, Mr. Sibal is actively exploring options to streamline regulatory structure and encourage private investment.

Apart from a host of public-private partnerships the minister is also considering to allow for setting up a not-for-profit entity under Section 25 of the Companies Act 1956.

Current regulatory structure only recognizes institutions which are set up as non-profit trusts or societies. While the registration under section 25 as company would still require a non-profit objective it would enable recognition from the regulatory body and help in managing in a more scalable, professional and accountable manner at a national level.

Posted by:
Rahul Choudaha (PhD, MBA, BE)
blog: Dr. Education
New York, New York