AICTE accepts panel proposal on fee cap for private institutes

As reported by The Indian Express on November 19, a 10-member panel headed by former Supreme Court Judge B N Srikrishna had proposed a range of maximum fees to be charged by private institutes.

Written by Ritika Chopra | New Delhi | Updated: December 24, 2015 5:53 am
The survey findings are based on responses of 716 universities, 29,506 colleges and 6,837 standalone institutions. There are a total of 757 universities, 38,056 colleges and 11,922 standalone institutions in the country. The Justice Srikrishna committee was set up by the AICTE to honour the Supreme Court’s direction in the TMA Pai Foundation case.

Moving a step closer towards fee regulation at the national level, the All India Council of Technical Education (AICTE) has accepted the report of the government-appointed committee, which had recommended a ceiling on the tuition fee charged by all private institutes for technical courses including engineering and MBA.

As reported by The Indian Express on November 19, a 10-member panel headed by former Supreme Court Judge B N Srikrishna had proposed a range of maximum fees to be charged by private institutes.

For instance, the committee has fixed the maximum (tuition and development) fee for a two-year MBA course at Rs 1.57 lakh to Rs 1.71 lakh per annum, depending on the location of the institute. The annual fee for a four-year engineering degree (BE or B Tech) has been fixed at Rs 1.44 lakh to 1.58 lakh. It has also proposed the maximum fee for technical courses like B Arch, B Pharma, MCA and M Tech.

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The AICTE accepted all the recommendations at its council meeting on December 11 and decided to draft a regulation on the fee to be charged by private institutes. But before that, it will share the committee’s report with state governments for their comments, and to apprise them of the additional financial burden which they will have to bear because of increased scholarships, said sources.

The HRD Ministry too has been requested to consult the Finance Ministry on the funds required for scholarships once the recommendations are implemented. The AICTE, however, hasn’t decided on a timeline to introduce the fee regulation.

The Justice Srikrishna committee was set up by the AICTE to honour the Supreme Court’s direction in the TMA Pai Foundation case. The apex court had ruled that to prevent commercialisation of technical education, the fee charged by private institutes should be decided by the state governments until a national-level fee fixation committee gives its recommendations.

Once the report is implemented, all private institutes which take more than the prescribed fee will have to fall in line. The report makes an exception for institutes of excellence by allowing autonomous and accredited institutes to charge 10 per cent and 20 per cent additional tuition fee respectively.

However, it is not clear what will happen to reputed institutes which charge more, despite the exception made for excellence. The Xavier Labour Relations Institute (XLRI) in Jamshedpur, for instance, takes Rs 9 lakh per annum for its post-graduate diploma in management, which is equivalent to a two-year MBA. The TA Pai Management Institute in Manipal or TAPMI charges Rs 7 lakh for the same.

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  1. A
    anupam
    Dec 28, 2015 at 1:28 pm
    It is a very welcome move, especially for insutes like TAPMI which indulge in unethical practices related to admissions. Consider the following case as an example
    Reply
  2. A
    anupam
    Dec 28, 2015 at 1:29 pm
    Reply
  3. H
    harish
    Dec 24, 2015 at 6:49 am
    Why should there be a distinction between private and government insutions? Why should the government funded IIMs be allowed to charge above 15 lakh fees if the wise guys feel that students' interests need to be taken care of. At least in the case of private insutions one can be sure that if their price is not commensurate with their quality, they would price themselves out of the market.
    Reply
  4. S
    ss
    Dec 24, 2015 at 6:23 am
    This is a welcome development. Educational insutions should not be seen as profit making businesses. The profit maximisation principle has no application here. There should be a system of cost plus pricing for all educational insutions at all levels to ensure there is no profiteering in education.
    Reply
  5. P
    Prof Ujjwal
    Dec 24, 2015 at 10:13 am
    Is this a joke? How can an insute ensure good faculty, good industry exposure, good learning resources all leading to great learning and good placements within Rs.1.7 lacs per annum for MBA course? Let govt insutes and universities stick to that cost. But why force this on private insutes and thereby leading them to close down or compromise heavily in their work?
    Reply
  6. P
    Prof Ujjwal
    Dec 24, 2015 at 10:15 am
    Stupid development. If implemented heavily insutes like IIMs and Symbiosis and TAPMI or Manipal etc will close down.
    Reply
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