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Development of Education System

Notes for higher education must come from sources other than the Government. The consequence of
in adequate investment in higher education is serious. While the Universities are at pain in
persuading the Government for increased budgetary allocations, some of them have
simultaneously takes measures for generating funds of their own.
It is high time the university system resorted to long-term resource planning instead of taking
the state support for granted each University will now have to identify avenues of resource
generation, both internal as well as external, depending upon the nature of its programme
offerings and the locale. The Punnayya Committee set up by the UGC and the Swaminathan
Panel of the AICTE have made some broad recommendations in this regard. The internal
measures, amongst other things, may include proper utilization of funds, general economy in
expenditures, pooling and sharing of departmental and institutional resources and most
importantly, rationalization of fee structure. As far the external resources, the important avenues
include donations from alumni, philonthropists and others, consultancy, university industry
interaction, etc.
In most institutions of higher education, at present, the tution fees contribute very little towards
earnings while the recurring expenditure on each student is must higher. In fact, an upward
revision of fees is over due. The need to raise the tution fees to at least 20% of the recurring
expenditure per student generally and at a still higher level higher professional and technical
courses is being advocated. Increase in fees from the foreign students at further higher levels is
being talked about by reserving seats for them in select institutions like the IIT and the IIMS.
By far the least controversial avenue of generating additional resource is that of tapping the
philonthropists, alumini and others such as business houses and industrial concerns for voluntary
contributions. In order to encourage this the Government of India’s financial act provides for
100% tax exemption in respect of donations by a tax payer to a university or institution of
national eminence. Again, University Industry interaction is becoming a plank in this direction.
The Swaminathan panel has suggested building up a reservoir of funds by collecting educational
cess from industries and other user organisations. Setting up of an Educational Development
Bank of India initially with shares of Rs. 1000 crore each by the State Governments, Central
Government and international financial agencies has also been suggested. Raising money through
consultancy work or job assignment by institutions to industries or other professional
organisations is yet another avenue being profusely recommended. As an incentive, part of this
money goes to individual scholars while the rest is added to the funds of the University. It is
pertinent to mention her the official view that avenues generated through enhanced fee structure,
consultancy and other activities would not be offset against Government grants with the
industries considering “adoption” of one or more institutions of higher education. A major
problem in relationship between industry and academic is that perhaps both do not know what
the other wants. While the universities are unable to identify the precise needs of the industry,
the latter are unaware about the type of interaction universities look forward from them.
Could a beginning not be made by sharing the infrastructure each is known to possess?

While measures such as these appear realistic, their repercussions need to be
thoroughly assessed before taking some definite decision in the matter.
Particularly, interests of poor students generally and those India students who
are pitted against the foreign students admitted on the basis of higher fees need
to be protected.

27.3 Privatization of Higher Education in India: Case for and Against

The private initiative in education, especially higher education is not altogether new to India.
Some of the leading universities namely, the Banaras Hindu University and the Aligarh Muslim
University came up with the efforts of certain dedicated individuals and financial support of the
community at large. Again, a large number of educational institutions in the country especially

256 LOVELY PROFESSIONAL UNIVERSITY