TS, AP set up private universities

Both the Telugu states, Andhra Pradesh and Telangana, have decided to open up to private universities. AP already introduced the bill in the Assembly, where as Telangana will introduce the bill during the ensuing budget session.

AP and Telangana are among the few major states, Maharashtra, West Bengal and Jharkhand being the others, that have not allowed private universities yet. The remaining states, including some UTs, have permitted as many as 124 private universities till now.

The UGC Act allows setting up of private and deemed universities, but different states have to allow them to function from their jurisdiction. For this, over 20 states have passed laws or issued executive orders permitting private and deemed universities.

The combined AP used to have around 40 state-run universities, besides half a dozen Central universities, four deemed and two private universities. But, after the bifurcation last year, all deemed and private varsities have gone to AP. The two states are eyeing a lucrative market of Rs 10,000 crore in higher education in the form of private universities in the next five years.

AP has set the criteria for higher educational institutions. They require a standing of not less than 10 years and a corpus fund of Rs 50 crore for applicants. Telangana, too, is likely to fix a minimum 10 years’ standing and a corpus fund of not less than Rs 100 crore along with backing of a reputed research institution or panel of experts on board for the applicants to set up private universities. Both states estimate setting up around 10 new universities in the next two years.

After passing the bill, Telangana soon have world class private universities and there will no room for ordinary institutions or those running engineering colleges and dreaming of converting them into private universities. The government is of the view that the more job opportunities will be created to local youth if private universities are set up.

The idea of private universities is also being favored by the state government as it strongly feels that such universities would bridge the glaring gap between the existing universities and industries and job providers. The country has already 212 private universities in 22 different states.

The norms for the private universities recommend the government not to incentivize or provide financial relaxations to those interested in setting up the varsities thus closing the space for small players.

A report with such recommendations that reflects the government’s views that institutions that enhance Hyderbad’s image around the world, like the Indian School of Business (ISB) or the BITS Pilani, should be promoted has been submitted to the Government. Reliance Company came forward to set up a private university in Telangana. If the government’s efforts fructify, Reliance may be the first to do this.

Recommendations also include that government should encourage such Institutions that they not expect any incentives from the government. But majority of private institutions are run in the State by two set of entrepreneurial social groups such as business people and politicians-who are in the game for simple reason, higher education is a great business opportunity for becoming a politician or celebrity. According to one estimate, the higher education sector will be worth of Rs.13200 crore businesses in India.

While the experts of Higher education cautioned that Telugu states requires stringent laws for private higher education institutions/ universities to be non-profit entities, it is estimated that five millions students may entre the 15 -24 age group each year and many more of them are interested in obtaining a college degree today than in the past. Public institutions are not in a position to meet what seems like ever-growing demand for higher education.

Private institutions have proliferated across the state to meet the high demand for education, especially in professional streams such as engineering, medical, pharmacy and management. Labeled these institutions as “teaching factories” by detractors, they charge high fees and often demand a lump sum by one name or another. As a rule, these institutions get away with providing third-rate education. The cosy relationship between business groups and politicians has ensured that the private sector remains both over-regulated and poorly regulated.

Over-regulation keeps credible competitors from entering the higher education sector and poor regulation allows those that are in the game to make hay. As a result, the state is witnessing nothing short of a bare exploitation of students and parents who have nowhere to go. But both Telugu states should take care of the economically weaker sections as they could not afford the fee charged by the private universities, so there is need to extend assistance to such students whoever was willing to take courses in the private universities.

G.Rajendera Kumar