Education sector turned for-profit by business groups, politicians

Though the sector continues to receive benefits marked for the non-profit sector, it has become a thriving business for investors

trithesh

Trithesh Nandan | July 10, 2013




With the entry of business groups and politcians with money, the education sector has become a core of profit maximisation in the recent years, a new report released by the Voluntary Action Network of India (VANI), an NGO says.

The report, titled 'Status of the Voluntary Sector in India', notes that educational institutes, registered under the Societies Registration Act or Section 25 of the companies Act (both giving significant tax exemptions), are roaring  for-profit enterprises garbed as voluntary organisations.

“The majority of private institutions are run by two sets of entrepreneurial social groups – business people and politicians – who are in the game for one simple reason: higher education is a great business opportunity,” said the report.

It also notes, “While India’s laws require higher education institutions to be non-profit entities, nearly all are eager and impatient predators.”

The report called for the government to weed out such organisations that are founded on corporate principles. The report emphasised that the government should come out with a policy to establish values of voluntarism and not-for-profit.

“The government does not consider them as separate entities and they are treated equally as any small or medium voluntary organisation that is providing voluntary services,” it added.

It also said that the education institutes and religious groups are among the largest recipients of foreign funding. "Nearly 19 per cent (Rs 1,276.56 crore) of the foreign funds are pumped into education sector and religious bodies,” said the report.

“While voluntary sectors have been contributing a great deal in the remotest locations of the country for the upliftment of the marginalised, it is the same group which is a victim of negativism,” said VANI CEO Harsh Jaitli. He added that the voluntary sector has been facing the brunt of cancellation of registration by the government.

In the recent past, registration of 4,138 NGOs has been cancelled. The list shows that Tamil Nadu has the maximum number of cancellations at 794, followed by Andhra Pradesh (670), Kerala (450) and Maharashtra (352).

“We are just victim of negative generalism,” said Jaitli.

The report recommended a nodal ministry for the voluntary sector based on the guidelines of steering committee report of 2012.

Comments

 

Other News

IRCTC listing still lingering despite clearance in 2017

Ministry of railways’ decision of holding the listing of Indian Railway Catering and Tourism Corporation (IRCTC) has exposed its seriousness in listing its public enterprises in stock exchanges. Although the decision was taken one year back, the national transporter does not have a com

Delhi crisis shows failure of governance, says ex Delhi chief secy

The tussle between the Aam Aadmi Party (AAP) and lieutenant governor of Delhi Anil Baijal has entered into its fourth day on Thursday. With no immediate solution to the ongoing ego-tussle, citizens are the mute sufferers.  Umesh Sehgal, former chief secretary of Delhi, feels that instead of

The steel frame in peril

As a nervous, young IAS aspirant in 1977, I remember being thrilled to see my name in the newspapers when the list of successful candidates was published. Indeed, I was hoping to be allotted my home state, Kerala, but knew that my rank in the exams did not make that possible. Yet, I cannot deny being a lit

Sitharaman unveils BEL’s 16 MW solar power plant

 A 16 MW grid-connected solar power plant set up by Bharat Electronics Limited (BEL) was unveiled by defence minister Nirmala Sitharaman at Heavy Vehicle Factory (HVF) in Avadi on June 8.   BEL is establishing energy security for the ordnance factory estates under the Viabil

Govt plans to install 300 mn tonnes of steel capacity by 2030, says steel minister

Chaudhary Birender Singh says SAIL is at par with any other international steel enterprise   Union minister of steel Chaudhary Birender Singh has said that SAIL is a major contributor of the country’s steel production industry and is foremost in terms of production tech

BHEL to set up two solar photovoltaic plants in Gujarat

 BHEL has bagged two orders, valued at Rs 125 crore, for setting up solar photovoltaic (SPV) power plants in Gujarat. Both the plants will be built at Gujarat Solar Park in Gujarat. The first order for setting up a 20 MW SPV power plant has been placed on BHEL by Gujarat Alkalies and Chemica

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter