Transcript The Foreign Educational Institutions Bill, 2010: An Update

The Foreign
Educational Institutions
Bill, 2010 : An Update
Faisal Beg, Trade Commissioner
Canadian High Commission
New Delhi, India
India: Education Market Overview
India's education system is among the largest in the
world
- largest number of higher education institutions
(over 18000)
- third largest in terms of student enrolment -12.8
million (after US and China)
- according to one estimate, India's education
market size is worth US$50 billion- higher and
professional education segment constitutes 40%
of this market
- significant growth in the past one decade
…………. 2
….India: Education Market Overview
. And yet gross enrolment ratio remains very low
(12% which is less than half of world average)
. Only a few higher education institutions are of
global ranking (e.g, IISc, IITs, IIMs, etc)
. A sizeable number of Indian students go
overseas for higher education
. Education spending going up significantly,
especially for infrastructure development
. Educational reforms underway -aims at creating
a governance structure that can support the
transformation process
3
Rationale for the Bill/Legislation
. A number of foreign education institutions
operating in India without
a comprehensive/effective regulatory regime
in place
. At present only All India Council for Technical
Education (AICTE) has notified regulation for
FEPs
. The new Bill aims at creating a regulatory
regime which is transparent, can maintain
standards and protect student interests
. The Bill also aims at attracting FDI in
education which can help bridge the
infrastructure gap in education arena.
4
Key Features of the Bill
. Government permission and notification mandatory
for foreign educational institutions for offering
education services in India and awarding
degrees/diplomas/certificates, etc.
. Such services can be offered through conventional
method (including classroom teaching method but
excluding distant mode) only, independently or in
collaboration, partnership or in a twinning
arrangement.
. FEIs with a standing of at least 20 years to be eligible
to apply
……………
5
……..Key Features of the Bill
. University Grants Commission (or its
successor) will act as the nodal agency for the
approval/notification process. Also, the
provisions of the UGC Act 1956 will apply to
FEIs as they apply to any other university in
India.
. Programs offered in India ought to be
consistent with the programs offered in home
country in terms of quality, content, etc.
. Undertaking to maintain a corpus fund of INR
500 million (C$11.34 million) -in effect a
collateral.
6
…….Key Features of the Bill
. Income generated out of the corpus can be
ploughed back for development purposes up
to 75%; the remainder has to be deposited
with the corpus; no repatriation allowed.
. Penal clauses on default (deposit money can
be forfeited)
. An Advisory Board created under the
provisions of the Act can exempt a foreign
institution on the basis of reputation from the
above requirements (with a few exceptions).
7
………Key Features of the Bill
. Existing FEIs also required to seek approval
under the provisions of the new Act.
. Adjudication by a National Education Tribunal
(A Bill is pending approval of Parliament)
. Time-bound approval process (though, can
take up to one year)
8
Road Map and Prognosis
• Year 2004 - Bill drafted on the basis of a
position paper by GOI's Ministry of Commerce
and Industry
• Year 2005 - Draft Bill revised
• Year 2007 - More revisions
• 2007-2009 - No Progress due to lack of
political support
• April 2010 - A revised Bill approved by the
Union Cabinet & Introduced in Lok Sabha
(Lower House of Parliament)
9
…….Road Map and Prognosis
• Sep 2010 - No progress made during
Parliament's Monsoon Session (a related Bill,
i.e. the National Education Tribunal Bill stalled
in the Rajya Sabha -Parliament's Upper Housein the Monsoon Session; Bill subsequently
withdrawn
• Nov 2010 - Expected to get going during the
winter session (No easy ride expected)
10
Key Concerns
. Provisions of the proposed requirement for
authorization for existing partnerships, etc and
requirement of corpus money will have
significant implications for partnership
programs involving Canadian and Indian
institutions.
. Provisions of exemption on the basis
of perceived reputation might
create unequal operating conditions
11
……..Key Concerns
. Passage of the Bill remains uncertain. Approval
process, though time-bound, might still take up to one
year; can cause frustrations to those institutions which
have a definite entry plan for the Indian market.
THANK YOU
12