Why Universities will have to increase Fees?
Recently we have seen the protest of the Ayurveda college students of
the Uttrakhand to the JNU of Delhi to the TISS students of the Hyderabad. There
is one link which connects all and that is the privatization of the Education.
There is one Well fabricated myth propagated by the Ruling party and right-wingers that there should be no education on the basis of the tax money. These are
Anti National people. Karachi resolution of the Congress in 1931 which was chaired
by the Sardar Patel declared that there will be free Education to all in Independence
India. Today we failed the vision of our founding fathers and Education is
mainly privatized.
Now, Let me come to the Main point that
Why university need to increase fees? The answer is the HEFA- Higher Education
finance Agency. Though it's not the answer of the at present problem of the
Hiking of the Fees of the Uttrakhand Ayurvedic college to the TISS. But For the
Future, It will be the Reason for the hiking in fees.
The government announced the two
measures to finance higher education in India in 2018. Following are those:-
- Higher Education Financing Agency (HEFA) with a capital base of Rs. 10,000 crore.
- Mobilise Rs. 1,00,000 crore for revitalizing infrastructure and systems in education by 2022 (RISE by 2022)
Unlike the other Announcement like the
$5Trillion Economy and 1 lakh crore investment in the Infra where is no
detailed blueprint to achieve the target. Here in case of the HEFA and RISE,
the government announced the brief of the scheme and its look very dangerous.
Following four are the model of the
Finance:-
- Technical Institutions more than 10 yr old: would repay the whole Principal Portion from the internally generated budgetary resources. 100% of interest costs would be serviced by the Government.
- Technical Institutions started between 2008 and 2014: would repay 25% of the principal portion from internal resources. 75% of the principal and 100% of interest, costs would be serviced by the Government.
- Central Universities started prior to 2014: will repay 10% of the principal portion from internal resources. 90% of principal and 100% of interest costs would be serviced by the Government.
- Newly established Institutions (started after 2014) (for funding construction of permanent campuses): Government would completely service the principal and interest costs of the loan. Technical Institutions more than 10 yr old: would repay the whole Principal Portion from the internally generated budgetary resources. 100% of interest costs would be serviced by the Government.
Now understand with the Example that what would be the scenario in
future.
IIT
Kharagpur is the technical institution which is 10 years old. On the date
17/01/2018 HEFA sanctioned the Loan of 500 Crore to it. Yet don't have the
information about the Period of Loan. But, IITK has to replay this Loan by its internal sources which are mainly fee
of the student in next 10-15 years. Likewise, IIT Bombay got 500 Crore loan, IIT Madras Nearly
700 Cr.
IIT
Dharwad is the technical institution which is not old of 10 years, so it comes
under category No.2. It has been sanctioned Rs. 1062 Cr. IITdarwad has to
replay 25% of it means Rs.250 crore from its internal sources.
Banaras
Hindu University is the central university which got Loan of the 356 Crore.
It's Central university and Comes under the List 3 and So it has to replay 10%
of the loan from internal sources. That means, BHU has to replay Rs.3.5 Crore
forms its internal sources.
There
is no need to analyze the category 4 cause in that whole burden will be bear by
the government itself.
I
consider the Whole Idea of the HEFA as the bogus one. It’s the first step to
privatize higher education. Even though the Government decided to walk on that
path. Though Government is committed to HEFA mode, It's Progress is not good,
in fact very bad. Following are the two data of it:-
 |
| Don't Try to sum up numbers - Its Merged pic as the whole Screenshot of the website not fit in one screen. |
The government planned to provide Rs. 22,220 Cr. in the year 2018-19 and
Rs36,000 Cr in the year 2019-20. That means, Rs. 56,200 Crore by the April 2020.
But, Till November 2019, Government only provided Rs. 5074 Cr.
Secondly, the Government planned to mobilize money from Market and CSR. But not
a single Rupee Comes from this. All 5074 Cr. comes from the Government.
In fact, when the HEFA was first announced in 2016, Government says that, 50% of the The money will be Government equity and 50% of the market borrowing. But Market do
not spend even Rs.1 to HEFA as Market understand very well that return is
risky as Colleges will have to hike fees to repay the loan and it's not pragmatic
for anyone to think.
Please Read following PIB Notes to underrated the Issue:-
Please Read following PIB Notes to underrated the Issue:-
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