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LATEST NEWS UPDATES | Increase outlay for higher and technical education by Dhiraj Mathur </title>
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<h1 class="cat-box-title">Increase outlay for higher and technical education by Dhiraj Mathur</h1>
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Published on</span><span class="text-date"> Feb 26, 2011</span>
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<div style="text-align: justify">The government passed the historic Right to Education Act (RTE Act) making education a fundamental right of every child.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The Act makes it obligatory for the government to ensure that every child in the six to 14 years age group gets free elementary education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">According to government estimates, there are nearly 220 million children in the relevant age group, of which 4.6%, or nearly 9.2 million, are out of school.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Under the Act, local bodies and state governments will undertake household surveys and neighbourhood school mapping to ensure that all children are sent to school.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Given the sheer scale of this programme and the complexities involved, a large number of issues need to be resolved.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The Act mandates that even private educational institutions have to reserve 25% seats for children from weaker sections. The intent of the law is noble and the government must provide adequate budgetary support to ensure its success.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The government has estimated a requirement of Rs1.71 lakh crore in the next five years for implementation of the RTE Act. This will put a huge burden on the government—and it is hoped that it would not be at the expense of higher education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There has been a crisis brewing in the higher education sector in the country. The statistics tell the story. Though, with nearly 26,500 institutes of higher education (504 universities and university level institutions and 25,951 colleges), India has one of the largest education systems in the world, the gross enrollment ratio is estimated at just 12.4%. This compares poorly with the global average of 23-54.6% for developed and 22% for Asian countries.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The higher education infrastructure is inadequate to support India’s ambitious targets of increased enrolment, suffers from severe issues of quality and relevance to the job market and cannot provide universal access to training and education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">A recent study conducted by PwC indicates that the growth of the sector is constrained not so much by willingness or ability to pay, as by supply and availability of quality and relevant education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The greatest hurdle is the huge capital required to fund expansion of education—-we estimate that $21 billion capex and $7.5 billion opex would be required to meet the XI Plan GER target of 15%.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Given the huge gap between demand for quality education and limited supply, there is tremendous interest and potential for private investment.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">However, the requirement of a not-for-profit entity sponsoring an educational institution has excluded all private investment. In essence, the only private capital flowing in is through CSR initiatives.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The government really has no choice but to think imaginatively of all possible ways of resource augmentation.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">For instance, to encourage CSR investment into the sector, the government could consider giving tax incentives for setting up educational institutions.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The government must also do a rethink on its long-standing position that educational institutions must be run on a not-for-profit model. At least, it could consider giving investors some space for recovering the huge capex and making legitimate profits by permitting the physical infrastructure to be housed in a profit company. With Kapil Sibal having taken charge of the ministry of human resource development (HRD), there is a prospect of genuine change in Indian higher education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The government has tabled five Bills in Parliament which address issues such as quality and benchmarking (mandatory accreditation and foreign universities), malpractices, overarching body and facilitate speedy resolution of disputes.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">These are certainly expected to overhaul the face of higher education sector in the country. These Bills are the first major reform initiatives in higher education in free India, demonstrating the changing mindset of the government for opening up a sector that is crucial for India’s sustainable growth in the global knowledge economy.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The forthcoming Budget is expected to increase allocation for primary education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">It is hoped that the finance minister will also make an increase in the allocation for higher and technical education and provide additional incentives for private participation in vocational training.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Vocational education, a goal enunciated in the national policy on education (NPE), still remains elusive.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">It is neither integrated with mainstream education, nor properly emphasised. The government is working on a national policy on vocational education, and it is expected that this would be finalised in the coming year.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">India is poised to be the youngest nation in the world by 2020 with an average age of 29. Unless the policymakers are successful in doing an overhaul, the system of higher, technical and vocational education, to improve quality, relevance and access, India risks frittering away its demographic dividend.</div><div style="text-align: justify"><em><br /></em></div><div style="text-align: justify"><em>The writer is leader, education practice at PwC India</em></div>
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<br><a href="http://www.dnaindia.com/money/comment_increase-outlay-for-higher-and-technical-education_1512808" class="re" target="_blank">DNA, 26 February, 2011, http://www.dnaindia.com/money/comment_increase-outlay-for-higher-and-technical-education_1512808</a><div class="clear"></div>
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<h1 class="cat-box-title">Increase outlay for higher and technical education by Dhiraj Mathur</h1>
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Published on</span><span class="text-date"> Feb 26, 2011</span>
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<div style="text-align: justify">The government passed the historic Right to Education Act (RTE Act) making education a fundamental right of every child.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The Act makes it obligatory for the government to ensure that every child in the six to 14 years age group gets free elementary education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">According to government estimates, there are nearly 220 million children in the relevant age group, of which 4.6%, or nearly 9.2 million, are out of school.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Under the Act, local bodies and state governments will undertake household surveys and neighbourhood school mapping to ensure that all children are sent to school.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Given the sheer scale of this programme and the complexities involved, a large number of issues need to be resolved.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The Act mandates that even private educational institutions have to reserve 25% seats for children from weaker sections. The intent of the law is noble and the government must provide adequate budgetary support to ensure its success.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The government has estimated a requirement of Rs1.71 lakh crore in the next five years for implementation of the RTE Act. This will put a huge burden on the government—and it is hoped that it would not be at the expense of higher education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There has been a crisis brewing in the higher education sector in the country. The statistics tell the story. Though, with nearly 26,500 institutes of higher education (504 universities and university level institutions and 25,951 colleges), India has one of the largest education systems in the world, the gross enrollment ratio is estimated at just 12.4%. This compares poorly with the global average of 23-54.6% for developed and 22% for Asian countries.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The higher education infrastructure is inadequate to support India’s ambitious targets of increased enrolment, suffers from severe issues of quality and relevance to the job market and cannot provide universal access to training and education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">A recent study conducted by PwC indicates that the growth of the sector is constrained not so much by willingness or ability to pay, as by supply and availability of quality and relevant education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The greatest hurdle is the huge capital required to fund expansion of education—-we estimate that $21 billion capex and $7.5 billion opex would be required to meet the XI Plan GER target of 15%.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Given the huge gap between demand for quality education and limited supply, there is tremendous interest and potential for private investment.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">However, the requirement of a not-for-profit entity sponsoring an educational institution has excluded all private investment. In essence, the only private capital flowing in is through CSR initiatives.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The government really has no choice but to think imaginatively of all possible ways of resource augmentation.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">For instance, to encourage CSR investment into the sector, the government could consider giving tax incentives for setting up educational institutions.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The government must also do a rethink on its long-standing position that educational institutions must be run on a not-for-profit model. At least, it could consider giving investors some space for recovering the huge capex and making legitimate profits by permitting the physical infrastructure to be housed in a profit company. With Kapil Sibal having taken charge of the ministry of human resource development (HRD), there is a prospect of genuine change in Indian higher education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The government has tabled five Bills in Parliament which address issues such as quality and benchmarking (mandatory accreditation and foreign universities), malpractices, overarching body and facilitate speedy resolution of disputes.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">These are certainly expected to overhaul the face of higher education sector in the country. These Bills are the first major reform initiatives in higher education in free India, demonstrating the changing mindset of the government for opening up a sector that is crucial for India’s sustainable growth in the global knowledge economy.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The forthcoming Budget is expected to increase allocation for primary education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">It is hoped that the finance minister will also make an increase in the allocation for higher and technical education and provide additional incentives for private participation in vocational training.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Vocational education, a goal enunciated in the national policy on education (NPE), still remains elusive.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">It is neither integrated with mainstream education, nor properly emphasised. The government is working on a national policy on vocational education, and it is expected that this would be finalised in the coming year.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">India is poised to be the youngest nation in the world by 2020 with an average age of 29. Unless the policymakers are successful in doing an overhaul, the system of higher, technical and vocational education, to improve quality, relevance and access, India risks frittering away its demographic dividend.</div><div style="text-align: justify"><em><br /></em></div><div style="text-align: justify"><em>The writer is leader, education practice at PwC India</em></div>
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<br><a href="http://www.dnaindia.com/money/comment_increase-outlay-for-higher-and-technical-education_1512808" class="re" target="_blank">DNA, 26 February, 2011, http://www.dnaindia.com/money/comment_increase-outlay-for-higher-and-technical-education_1512808</a><div class="clear"></div>
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<h1 class="cat-box-title">Increase outlay for higher and technical education by Dhiraj Mathur</h1>
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<small class="pb-1"><span class="dateIcn">
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Published on</span><span class="text-date"> Feb 26, 2011</span>
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<div style="text-align: justify">The government passed the historic Right to Education Act (RTE Act) making education a fundamental right of every child.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The Act makes it obligatory for the government to ensure that every child in the six to 14 years age group gets free elementary education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">According to government estimates, there are nearly 220 million children in the relevant age group, of which 4.6%, or nearly 9.2 million, are out of school.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Under the Act, local bodies and state governments will undertake household surveys and neighbourhood school mapping to ensure that all children are sent to school.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Given the sheer scale of this programme and the complexities involved, a large number of issues need to be resolved.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The Act mandates that even private educational institutions have to reserve 25% seats for children from weaker sections. The intent of the law is noble and the government must provide adequate budgetary support to ensure its success.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The government has estimated a requirement of Rs1.71 lakh crore in the next five years for implementation of the RTE Act. This will put a huge burden on the government—and it is hoped that it would not be at the expense of higher education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There has been a crisis brewing in the higher education sector in the country. The statistics tell the story. Though, with nearly 26,500 institutes of higher education (504 universities and university level institutions and 25,951 colleges), India has one of the largest education systems in the world, the gross enrollment ratio is estimated at just 12.4%. This compares poorly with the global average of 23-54.6% for developed and 22% for Asian countries.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The higher education infrastructure is inadequate to support India’s ambitious targets of increased enrolment, suffers from severe issues of quality and relevance to the job market and cannot provide universal access to training and education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">A recent study conducted by PwC indicates that the growth of the sector is constrained not so much by willingness or ability to pay, as by supply and availability of quality and relevant education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The greatest hurdle is the huge capital required to fund expansion of education—-we estimate that $21 billion capex and $7.5 billion opex would be required to meet the XI Plan GER target of 15%.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Given the huge gap between demand for quality education and limited supply, there is tremendous interest and potential for private investment.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">However, the requirement of a not-for-profit entity sponsoring an educational institution has excluded all private investment. In essence, the only private capital flowing in is through CSR initiatives.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The government really has no choice but to think imaginatively of all possible ways of resource augmentation.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">For instance, to encourage CSR investment into the sector, the government could consider giving tax incentives for setting up educational institutions.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The government must also do a rethink on its long-standing position that educational institutions must be run on a not-for-profit model. At least, it could consider giving investors some space for recovering the huge capex and making legitimate profits by permitting the physical infrastructure to be housed in a profit company. With Kapil Sibal having taken charge of the ministry of human resource development (HRD), there is a prospect of genuine change in Indian higher education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The government has tabled five Bills in Parliament which address issues such as quality and benchmarking (mandatory accreditation and foreign universities), malpractices, overarching body and facilitate speedy resolution of disputes.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">These are certainly expected to overhaul the face of higher education sector in the country. These Bills are the first major reform initiatives in higher education in free India, demonstrating the changing mindset of the government for opening up a sector that is crucial for India’s sustainable growth in the global knowledge economy.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The forthcoming Budget is expected to increase allocation for primary education.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">It is hoped that the finance minister will also make an increase in the allocation for higher and technical education and provide additional incentives for private participation in vocational training.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Vocational education, a goal enunciated in the national policy on education (NPE), still remains elusive.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">It is neither integrated with mainstream education, nor properly emphasised. The government is working on a national policy on vocational education, and it is expected that this would be finalised in the coming year.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">India is poised to be the youngest nation in the world by 2020 with an average age of 29. Unless the policymakers are successful in doing an overhaul, the system of higher, technical and vocational education, to improve quality, relevance and access, India risks frittering away its demographic dividend.</div><div style="text-align: justify"><em><br /></em></div><div style="text-align: justify"><em>The writer is leader, education practice at PwC India</em></div>
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<br><a href="http://www.dnaindia.com/money/comment_increase-outlay-for-higher-and-technical-education_1512808" class="re" target="_blank">DNA, 26 February, 2011, http://www.dnaindia.com/money/comment_increase-outlay-for-higher-and-technical-education_1512808</a><div class="clear"></div>
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LATEST NEWS UPDATES | Increase outlay for higher and technical education by Dhiraj Mathur
Increase outlay for higher and technical education by Dhiraj Mathur
Published on Feb 26, 2011
Modified on Feb 26, 2011
The government passed the historic Right to Education Act (RTE Act) making education a fundamental right of every child.
The Act makes it obligatory for the government to ensure that every child in the six to 14 years age group gets free elementary education.
According to government estimates, there are nearly 220 million children in the relevant age group, of which 4.6%, or nearly 9.2 million, are out of school.
Under the Act, local bodies and state governments will undertake household surveys and neighbourhood school mapping to ensure that all children are sent to school.
Given the sheer scale of this programme and the complexities involved, a large number of issues need to be resolved.
The Act mandates that even private educational institutions have to reserve 25% seats for children from weaker sections. The intent of the law is noble and the government must provide adequate budgetary support to ensure its success.
The government has estimated a requirement of Rs1.71 lakh crore in the next five years for implementation of the RTE Act. This will put a huge burden on the government—and it is hoped that it would not be at the expense of higher education.
There has been a crisis brewing in the higher education sector in the country. The statistics tell the story. Though, with nearly 26,500 institutes of higher education (504 universities and university level institutions and 25,951 colleges), India has one of the largest education systems in the world, the gross enrollment ratio is estimated at just 12.4%. This compares poorly with the global average of 23-54.6% for developed and 22% for Asian countries.
The higher education infrastructure is inadequate to support India’s ambitious targets of increased enrolment, suffers from severe issues of quality and relevance to the job market and cannot provide universal access to training and education.
A recent study conducted by PwC indicates that the growth of the sector is constrained not so much by willingness or ability to pay, as by supply and availability of quality and relevant education.
The greatest hurdle is the huge capital required to fund expansion of education—-we estimate that $21 billion capex and $7.5 billion opex would be required to meet the XI Plan GER target of 15%.
Given the huge gap between demand for quality education and limited supply, there is tremendous interest and potential for private investment.
However, the requirement of a not-for-profit entity sponsoring an educational institution has excluded all private investment. In essence, the only private capital flowing in is through CSR initiatives.
The government really has no choice but to think imaginatively of all possible ways of resource augmentation.
For instance, to encourage CSR investment into the sector, the government could consider giving tax incentives for setting up educational institutions.
The government must also do a rethink on its long-standing position that educational institutions must be run on a not-for-profit model. At least, it could consider giving investors some space for recovering the huge capex and making legitimate profits by permitting the physical infrastructure to be housed in a profit company. With Kapil Sibal having taken charge of the ministry of human resource development (HRD), there is a prospect of genuine change in Indian higher education.
The government has tabled five Bills in Parliament which address issues such as quality and benchmarking (mandatory accreditation and foreign universities), malpractices, overarching body and facilitate speedy resolution of disputes.
These are certainly expected to overhaul the face of higher education sector in the country. These Bills are the first major reform initiatives in higher education in free India, demonstrating the changing mindset of the government for opening up a sector that is crucial for India’s sustainable growth in the global knowledge economy.
The forthcoming Budget is expected to increase allocation for primary education.
It is hoped that the finance minister will also make an increase in the allocation for higher and technical education and provide additional incentives for private participation in vocational training.
Vocational education, a goal enunciated in the national policy on education (NPE), still remains elusive.
It is neither integrated with mainstream education, nor properly emphasised. The government is working on a national policy on vocational education, and it is expected that this would be finalised in the coming year.
India is poised to be the youngest nation in the world by 2020 with an average age of 29. Unless the policymakers are successful in doing an overhaul, the system of higher, technical and vocational education, to improve quality, relevance and access, India risks frittering away its demographic dividend.
The writer is leader, education practice at PwC India
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