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

Reinvigorating reinsurance

After the liberalisation of the insurance industry in 2000, private firms (mostly in partnerships with foreign firms) have readily taken to the sector. Till FY18 there were 23 private firms in the life insurance sector and 21 in general insurance segment. However, it was only in 2016-17 that the first priv

Portrait of a scholar-activist as a young student

[Kancha Ilaiah Shepherd, scholar and dalit activist, has penned his autobiography which is more than just the life-story of an individual but promises to become a document for a generation and a community. We reproduce below an excerpt, with the permission of the publishers, where he talks about his yo

Informal power

Villages without power supply are easy to find though the government says there are none. The lines are laid, but many villagers are too poor to pay for electricity. BPL (below poverty line) families, entitled to free supply, are waived the installation charge. But they don’t have money to wire their

Vande Bharat halts midway near Tundla

In a major embarrassment to the railways, the much touted Vande Bharat Express developed a technical snag at Chamraula, 15 kms from Tundla junction.   Prime Minister Narendra Modi flagged off the train on Friday from New Delhi station.    The train was

PM flags off India’s first semi high-speed train

Indian Railways entered a new era as prime minister Narendra Modi on Friday flagged off the country’s first semi high-speed train, Vande Bharat Express, from the New Delhi railway station. The new train is also seen as a success story of the NDA government’s ‘Make in India’

Estonia eyes on more e-Residents from India to open startups

Riho Kruuv, Ambassador of the Republic of Estonia talks to Vishwas Dass on key issues like the importance of e-Residency programme of the Government of Estonia and why Estonia is becoming a preferred investment destination for Indian startups and budding entrepreneurs. The Ambassador says Estonia offer

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter