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Govt may allow private sector investment in education

The Centre plans to allow the (for-profit) private sector to set up educational institutions and tap the capital market, thus aiming to plug the funding gap in the education sector. In this regard, the Human Resource Development (HRD) ministry has asked Max India Chairman Analjit Singh to prepare a feasibility paper.

HRD Minister Kapil Sibal did so during a roundtable in New Delhi with Singh and other members, including Sunil Alagh, chairman of SKA Advisors, Hari Bhartia, co-chairman and MD of Jubilant Organosys, and Rajendra Pawar, chairman of NIIT.

Singh is one of the founder supporters of Indian School of Business (ISB’s) second campus at the Knowledge City, Mohali and has donated Rs 50 crore for the campus. Other founder supporters include the Bharti, Hero and Punj Lloyd groups. 

Analjit Singh’s office confirmed the development, but declined to divulge details. 

MHRD sources confirmed that the government wanted to plug the funding gap in the education sector and the private sector’s participation is being perceived as one such method that could go a long way in bridging the deficit.

The resource gap in higher education identified by Planning Commission stands at Rs 220,000 crore, according to a recent Ernst & Young report.

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