Educational Partnerships India

Media Reports

Foreign university bill gets Cabinet nod
Mon, Mar 15 12:49 PM

New Delhi, Mar 15 (PTI) Government today approved a bill to allow foreign education providers set up campuses in India and offer degrees. The Foreign Educational Institution (Regulation of Entry and Operation) Bill, 2010, was cleared by the Union Cabinet presided by Prime Minister Manmohan Singh.

This paves way for its introduction in Parliament. "This is a milestone which will enhance choices, increase competition and benchmark quality," HRD Minister Kapil Sibal said after the approval of the bill by Cabinet.

The bill seeks to regulate the entry and operation of foreign institutions, which will set up centre and offer degrees in India. This bill was hanging fire for over last four years owing to opposition from various quarters, including the Left parties, over certain provisions.

Last year, it was referred to a Committee of Secretaries which brought modifications to certain provisions earlier existed. The bill was approved by the Cabinet without any change today.

The proposed law prescribes eight-month time bound format for granting approval to foreign educational institutions to set up campuses. They will go through different levels of registration process during this period and will be finally registered with UGC or any other regulatory body in place.

India Today
Why foreign institutes dig Indian market
Thu, Mar 18 03:04 PM

For foreign universities, which haven't yet recovered fully from the aftershocks of the worldwide recession, India presents, to quote a word re-introduced into the English vocabulary by Tim Burton's Alice in Wonderland , a 'frabjous' opportunity.

More than 100,000 students leave Indian shores annually to study at universities abroad. Their presence has made foreign universities wake up to the incontrovertible fact that there's another 'creamy layer' below these students abroad whose families are prepared to pay upwards of Rs 2.5 lakh a year for quality education.

Profs debate Foreign Univ Bill

What foreign universities Bill can't do

International students are the economic mainstay of foreign universities, but these institutions are not in a position to meet the demand for the education they provide on their own campuses back home. This untapped market makes the business of overseas campuses that much more lucrative.

For over a decade, foreign universities have been lobbying hard for the passage of the Foreign Education Providers Bill, which has been a pet project of HRD minister Kapil Sibal. The most recent of these exploratory visits was that of Robert A. Brown, president of Boston University, who was in the Capital in January to plan collaborations with leading universities here.

He said there was an insatiable appetite for quality education in India and collaborations would mutually benefit both countries. US's Georgia Institute of Technology announced its plan to set up campuses in Hyderabad and Visakhapatnam as soon as the Bill gets Parliament nod.

Central Michigan University, meanwhile, has taken another route to plant its flag in India. It has been offering a collaborative MBA programme with the Jawaharlal Nehru Institute of Technology, Hyderabad, for the past five years.

Experts associated with these universities explain the economic logic of their plans for India: the proliferation of private institutions in the country-especially in engineering, medicine, management and law - that charged fees upwards of Rs 2.5 lakh a year was evidence of the vast market waiting to be tapped.

These institutions attract the second layer of the country's higher education market. These are students whose families can't afford foreign education (upwards of Rs 15 lakh a year), but want to be in the top four favourite streams.

India, according the now-defunct National Knowledge Commission, needs 1,500 universities, compared with about 350 now, to raise the enrollment numbers from 7 per cent of the population aged 18-25 to developed country averages.

But even before the Bill got the cabinet's nod, Indian universities had initiated the process of collaborating with their international peers to offer degrees or diplomas. A National University of Educational Planning and Administration (NEPA) report in 2008 pegged the number of these institutions at more than 130.

For Bangalore University vice- chancellor A. N. Prabhu Deva, collaboration is the way forward.

"It will help a higher education institution rise to the standards of its foreign partner," he says. But for this collaboration to become meaningful, says R. Govinda, NEPA V-C, teaching must go hand in hand with research. "Only then will quality education and foreign collaborations be meaningful," he says.

Either way, for foreign universities, this is a winwin situation. Narayanan Ramaswamy, executive director of the management consultancy KPMG, points to the "massive demand supply gap" driving the international higher education market.

Role and challenges of foreign Universities in India

Some of the media reports on Foreign Universities dealing with issues of acceptance and meeting regulatory measures are given hereunder:

Allow foreign varsities on Chinese model

Rajeev Ranjan Roy | New Delhi
Plan panel tells HRD, PMO

The Indian Left leaders and their model of economic growth might not appeal Planning Commission vice-chairman Montek Singh Ahluwalia, but he wants that Indian doors be opened for foreign universities a la China.

Ahluwalia is so impressed by the way the world's largest Communist regime has allowed the entry of foreign universities, his crisp but powerful advisory to the Centre and Union Human Resource Development Minister Arjun Singh is-'Learn from China in this regard.'

According to sources, the HRD Ministry is going through the nitty-gritty of 'suggestions and targets' set by the Plan panel for higher education in the 11th Five-Year Plan. It was one of the major points of focus in Ahluwalia's presentation to Prime Minister Manmohan Singh on the roadmap of higher education in the coming five years.

Ahluwalia's 'China model advice' comes at a time when the Left leaders are not willing to budge from their stated stand to oppose the entry of foreign universities in India. CPI(M) MP and Polit Bureau member Brinda Karat recently wrote to the HRD Minister reiterating that her party was principally opposed to opening higher education sector to the foreign players.

Whether Plan panel chief's China centric advice has any mellowing effect on the Left remains to be seen, but the Centre seems to be working out strategies to facilitate their entry during the 11th Plan as reported by The Pioneer earlier.

In China, the foreign universities have to partner with the local institutions, and the partnerships do not intend to seek profit as their objective. This Chinese norm is in concurrence with the views of University Grants Commission (UGC), a statutory body under the HRD Ministry, that foreign universities should not eye India as a market, but should invest adequately to set up their own campuses.

Chinese provisions for foreign universities stipulate that half of the members of the governing body of the institution must be Chinese citizens and the post of president or the equivalent must be a Chinese citizen residing in China.

"In China, no foreign university can increase the fee without the prior approval of the authorities concerned. It is a very good provision and the Centre would certainly ensure the fee is not raised without approval of competent authority," a Ministry official said.

The suggestions of the Commission too seem to be along the Chinese lines. "In the 11th Plan, we should formulate a positive policy to encourage top class foreign universities and institutions to set up collaborative institutions in partnership with the public and private institutions. The collaboration between foreign and Indian universities should be encouraged," the Planning Commission has suggested.

The CNN Rao Committee on the entry of foreign universities had suggested the Government a two-pronged strategy. It was of the view that such universities should be allowed to operate for a limited period in the beginning, applying to all modes of operation right from franchisee agreements, twinning programmes, study centres, programme collaborations and offshore or branch campuses.

The committee was of the view that these universities should be allowed to further carry out their educational activities only if their performance was found to be satisfactory during this period, and only the universities accredited in their country of origin would be allowed to operate in India. At the same time, these universities should also help out Indian counterparts to start operations in their countries.

The HRD Ministry is, however, opposed to any hurried decisions on the entry of foreign universities on the pretext that only nations seeking Indian higher education door be opened are the US, the UK, Australia and Canada, where no other countries could intrude into their home territory.

"At the same time, it seems to be highly unlikely that top class Government universities would enter Indian higher education sector. The CNR Rao Committee on the entry of foreign universities too has advised the Government to adopt a cautious approach," a HRD Ministry official said.

Foreign univs won't have free ride here
URMI A GOSWAMI

TIMES NEWS NETWORK[ THURSDAY, MAY 31, 2007 01:21:31 AM]

NEW DELHI: It’s not likely to be a cakewalk for foreign universities of international repute such as Oxford, Harvard, Stanford, etc, when they try to set up their India operations.

Even though the proposed law regulating foreign education institutions gives universities of international repute the freedom to not observe domestic norms such as reservations for socially and educationally backward sections and the requirement of adhering to admission and fee norms, their entry into India may not be without conditions.

Though freed from the obligation of complying with Indian requirement of reservations and fee caps, the Regulation of Foreign University Entry and Operation (Maintenance of Quality and Prevention of Commercialisation) Bill, 2007, put in some financial riders for these universities.

The proposed law requires these universities to invest at least 51% of the capital expenditure required to set up their establishment in India. They will also be required to use surplus from the Indian operations exclusively for the growth and development of their education establishments in India.

The bill, which was slated to be introduced in the Budget session of Parliament, had to be put on hold because of opposition from the Left parties. If passed into law, all foreign institutes will have to be incorporated under Indian law, and will be given deemed to be university status.

This would permit them to grant admission and award degrees, diplomas or certificates. An expert committee comprising representatives of UGC and other statutory education councils like the AICTE and MCI will examine proposals from foreign education providers. This committee will have the power to decide which institutions will be exempted from fee control and national norms.

Operationally, the bill proposes to bring foreign education providers under the administrative umbrella of the UGC. Admission process and fee structure for these institutes will be regulated by the UGC. Since these foreign institutions will have to be incorporated under central or state laws, and be treated as deemed universities, they will also be subject to the government’s policies of reservations.

The UGC will frame regulations that will provide for the incorporation of the foreign education provider. It will determine admission procedures and eligibility of candidates. The commission will also determine the period for which the foreign provider will be granted permission to operate in India. There will be a provision for renewal as well.

The bill proposes to allow only those foreign education institutions which are accredited in their country of origin and meet the standards set by UGC to operate under this proposed legislation. This will keep fly-by-night operators out, and only allow legitimate education providers to operate in India.