Cabinet nod for foreign varsities to set up campuses in India

March 16, 2010: The Times of India

New Delhi: The country just took a big step for dramatically enhancing the profile of higher education in the country. On Monday, the Union cabinet cleared the Foreign Educational Institutions (regulation of entry and operation) Bill, which aims to allow foreign universities to set up campuses in India. 

The bill, which was adopted without changes, is expected to be introduced in Parliament after the recess of the budget session. If cleared, it would widen the definition of FDI in higher education and is expected to not only shake up the market but also throw up exciting possibilities for top Indian teachers. An excited HRD minister Kapil Sibal said the bill would lead to a ‘‘larger revolution than even in the telecom sector’’. 

While the bill will be opposed by the Left, it shouldn’t face any serious obstacle in Parliament because the BJP is also in favour of the move, even though it might raise some objections on a provision or two of the bill. 

Once it is cleared, some of the top foreign universities, said to be waiting in the wings, are expected to set up campuses in India. The Atlanta-based Georgia Tech University has already bought 250 acres in Hyderabad. Although Yale University is interested in having a presence in India, and welcomed the cabinet clearance, its assistant secretary George Joseph told TOI that there were no plans as of now to set up a campus here. 

While the foreign universities would follow the national laws, they will not have to give reservation in admission to SC/ST/OBC students. The bill treats them as private universities. Even Indian private universities are free of quota-based admissions. 

Similarly, foreign universities will have freedom to fix fees and decide their admission process.

World’s Best At Your Doorstep?

No caste quotas in Indian campuses of foreign univs, will be free to set fees and decide admission process

Foreign univs will have to deposit Rs 50cr as corpus fund to set up campus
Profits from educational activities can’t be taken out of India

Top Dollar For Teachers

Teachers in India’s leading institutes will be in demand, likely to see surge in salaries At $1547 (2008 PPP), India has among lowest average salaries for academics, compared to Saudi Arabia’s 6611, Canada’s 6548 and US’s 5816

Waiting in Wings

Ready to invest in India

• Imperial College (UK)

• Duke College (UK)

• Georgia Tech (US)

• Schulich School of Business (York University, Canada)

MEANWHILE….

Harvard Business School to have a classroom of its own in India for its executive management courses

Yale to develop India-Yale Leadership Program in areas like curriculum development, faculty development & academic planning

Punjab govt recently collaborated with Carnegie Mellon University to set up Punjab International University near Ludhiana

New entrants must deposit 50cr to register

New Delhi: The Foreign Educational Institutions (regulation of entry and operation) Bill makes it mandatory for foreign universities to publish a prospectus. Also, the bill disallows foreign educational providers from repatriating profit made from Indian campus through education. 

With foreign direct investment in higher education already allowed since 2002, the bill stipulates that any foreign university interested in setting up a campus in India will have to deposit a corpus of Rs 50 crore with the body that will register them. The registering body will be the University Grants Commission (UGC). 

The bill promises timebound registration to foreign universities, although they will have to go through a series of registrations at various levels. The registering body after going through the application will advise government whether the foreign university be allowed or not. 

Asked what happens in case a foreign education provider sets up a campus in collaboration with private Indian university, ministry source said, ‘‘It is the foreign education provider who will have to come for the registration with details of collaboration.’’ 

Kapil Sibal was quick to welcome the cabinet approval. He said, ‘‘This is a milestone which will enhance choices, increase competition and benchmark quality. A larger revolution than even in the telecom sector awaits us.’’

A larger revolution than even in the telecom sector awaits us
Kapil Sibal, HRD MINISTER