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

A gender perspective on migration

Khohar, a village located in Alwar district of Rajasthan, nestled in the foothills of Aravalis, is home to 154 families, most of whom are farmers by profession. The village has a large adult population with 65 percent over the age of 18. The village educational levels are relatively low, with household h

Is the political will lacking to make Delhi`s air clean?

Is the political will lacking to make Delhi`s air clean?

For the sunset years

The New Pension Scheme (NPS), the government of India’s flagship pension scheme, has been subject to a number of important reforms in recent times. This is a welcome change from the norm wherein the government’s and the regulators’ interest in pension products is passing at best. The Pe

Who will pay the price of overpopulation?

Olden days of civilisation experienced famines and natural disasters that caused human misery. While human population was limited, natural habitats were undisturbed and abundant; so calamities of nature were absorbed without any serious consequences. However, this no longer holds true in the current

Schooling change

Jhunjhunu, in northern Rajasthan, is known for its grand havelis and the frescoes on their walls. But they weren’t on prime minister Narendra Modi’s mind when he spoke of the desert town in his Mann Ki Baat radio talk of March 2018. What he focused on, instead, were the government schools in

The road ahead

A fter mixed response from the EPC (engineering, procurement and construction) and BOT-Annuity (build, own, transfer) model, the road sector in India is exploring the Hybrid Annuity Model (HAM) for roadways construction. In HAM, 40 percent of the project cost is provided by the government as ‘const

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter