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LATEST NEWS UPDATES | B-schools out of business-Basant Kumar Mohanty

B-schools out of business-Basant Kumar Mohanty

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published Published on Mar 20, 2012   modified Modified on Mar 20, 2012

Some 134 private management institutes have this year sought technical education regulator AICTE’s permission to close down citing a lack of students, strengthening a trend that began last year.

Government academics blamed the dwindling student interest in these private institutes on the “substandard education” they offer. B- school promoters, however, put the blame on the AICTE, saying the way it had allowed private management colleges to mushroom had led to supply outstripping demand.

India has nearly 4,000 B-schools — more than 95 per cent of them privately run —with a seat capacity of 3.5 lakh. However, only about two lakh managers’ jobs are created in the country every year, said H. Chaturvedi, a founder member of the Educational Promotion Society of India (EPSI), an association of private institutions.

He said the overall seat occupancy in the country’s B-schools is about 65 per cent (about 2.3 lakh).

The institutes that have applied for permission to shut down from the 2012-13 session have a combined seat capacity of around 10,000.

“These institutions have witnessed poor admission this year. Students are not interested in joining these institutions since they are not assured of jobs. The AICTE is examining their applications,” AICTE chairman S.S. Mantha told The Telegraph.

Chaturvedi cited how the number of B-schools in India had doubled in the past five to six years. A new institution can start teaching courses only after the AICTE grants approval following an inspection to evaluate the infrastructure and faculty standards.

“The AICTE mindlessly allowed new institutions to come up,” Chaturvedi said. “The EPSI has been demanding that new institutions be given approval only after an assessment of the requirement for management education in the country.”

However, IIT Delhi teacher S.S. Murthy said: “If there aren’t enough jobs, the students can start their own enterprise or get jobs abroad provided they are competent. But the real problem is that these institutions seeking closure impart substandard education. As a result, the students fail to get any engagement.”

Mantha partly agreed: “The main issue here is the quality of education imparted by these institutions. If the quality improves, the students will get engagement.”

He added that the institutes seeking closure were mostly located in rural areas and lacked links with industry, so their students often failed to land jobs. He said the applications would be decided only after the institutes got no-objection certificates (to their closure) issued by their state governments and affiliating universities.

About 40 private B-schools had sought permission to shut down last year, of whom 15 were allowed to do so after getting the no-objection certificates.

“The trend of seeking closure is mainly confined to management education,” Mantha said. “The AICTE has taken a lot of initiatives (to ensure quality), such as asking the institutes to subscribe to international journals and maintain faculty and facilities.”


The Telegraph, 20 March, 2012, http://www.telegraphindia.com/1120320/jsp/nation/story_15271941.jsp


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