Education SEZ: Commerce, HRD ministries spar

The commerce and education ministries are at loggerheads over the issue of imposing reservations...

The commerce and education ministries are at loggerheads over the issue of imposing reservations and other Indian university guidelines on educational special economic zones (SEZs) which are being set up to attract foreign investment in the education sector.

‘‘We are in talks with the HRD ministry to waive off the Indian universities laws like cap on fees, teachers’ salary and reservation for socially disadvantaged,’’ said a commerce ministry source.

‘‘These rules can deter foreign investors and we are hoping that we will resolve this issue before any SEZ takes off.’’

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The matter is being taken up at the minister’s level but sources add that the HRD ministry is not very keen on waiving off its supervision role for the education SEZs.

The HRD minister’s move comes at a time of protests against a proposal by the HRD ministry which mandates to reserve 50 per cent of seats in all educational institutes in India for socially disadvantaged castes.

As the focus of SEZs is to attract foreign investments, the proposal for a quota can deter investors and close a gate for Indian students to get high quality education within India, say analysts.

The educational SEZ will be a bonanza of sorts for Indian students as the costs for a student to obtain a foreign degree would drop drastically as compared to flying abroad.

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According to SEZ norms, students in these SEZ campuses will have to pay the entire fees in foreign exchange. The SEZ universities will also reserve 50% of its seats for Indians and the rest of the students can come from abroad.

According to commerce ministry sources, any foreign university—for example Cambridge, Harvard or Oxford—can now set up campus in the SEZs with a minimum campus size of at least 100 hectares.

As of now, foreign universities are not allowed to set up campuses in India but the government of India is under pressure in the World Trade Organisation to open up the services sector for foreign competition.

Mangalore-based education trust, Manipal group has already made an application to the government of India to set up an education SEZ targetted at non-resident Indians or persons of Indian origin.

Twist in the tale

• SEZ act allows foreign universities to open in SEZs

• HRD ministry seeks quotas in education SEZs

• Commerce ministry for waiving off quotas, fee cap

• Costs for Indian students to drop drastically