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This is an archive article published on June 24, 2002

‘Got a job? Your first pay is mine’

Union HRD Minister Murli Manohar Joshi has found an answer to the problem of ill-funded universities. Predictably, it lies in India’s &...

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Union HRD Minister Murli Manohar Joshi has found an answer to the problem of ill-funded universities. Predictably, it lies in India’s ‘‘golden past’’: A Gurudakshina tax. And predictably, it exhorts ‘‘commitment’’, ‘‘contribution’’ from the society.

In plain English, it’s payback time for parents, students and their future employers. Under the Tenth Five Year Plan (2002-2008), the employers, be they government or private, will pay the first salaries of their fresh recruits to an education fund called Bharat Shiksha Kosh. In return for thus paying for the skills of their employees, the companies will get tax benefits. The fund, an independently managed body set up with initial bulk investment by the Government, will in turn lend soft loans to students.

For the parents, there may be higher fees in store. Anticipating protests, the University Grants Commission (UGC) has recommended that the fees be pegged to incomes of parents.

The UGC has almost finalised these and other details of the Plan. Some are even more ambitious, like opening campuses of Indian universities in foreign countries so as to ‘‘export higher education’’.

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Critics see the steps as another move by the Government to absolve itself of its responsibility. Some are also scared it may be a way of implementing the Ambani-Birla Report on

privatisation of education. ‘‘Education is the Government’s responsibility, they cannot force people to contribute for it while washing their hands of,’’ says educationist Janaki Rajan.

Explaining the concept of Gurudakshina, UGC Acting Chairman Prof Arun Nigavekar says: ‘‘The employer will be giving first salary of employees at all levels to the Kosh. As the government educates all their employees, the companies owe the skills they inherit to their educational institutes.’’

The author of the Plan, Nigavekar says citizens would also be encouraged to contribute to the Kosh and for the ‘‘educational upliftment’’ of the country, with tax relief as an incentive. ‘‘I would like students to contribute from their first salaries as well,’’ he adds, ‘‘but it will take time for the change of mindset…The way parents donate towards flood relief, they can also donate for the future of education, and their own children.’’

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The debate about raising fees may also finally come to an end with the UGC recommending that universities charge students the actual cost of learning. At the same time, fees will be linked to parents’ financial status. Apart from that, it is recommended that more and more universities go the IIT way in creating Alumnus Funds. ‘‘We are not going to withdraw finances but universities should use own resources for development work,’’ Nigavekar says.

Talk like this alarms universities and educationists. ‘‘Fund-raising can never meet salaries,’’ says Dean of Delhi University Dr Kiran Dattar. ‘‘We may feel the students’ fees have been static for years, but we still have to think about it. After all, we cannot deny anyone education.’’

Rajan foresees a more serious problem. Linking fee hike to parental income, she says, might destroy the equalising ethos of a university. ‘‘At present, it doesn’t matter at a university whether one is the son of a rich man or not, but if one paid more or donated more to be there, it would diminish the equality in campus,’’ she notes.

While the industry is happy about universities generating own funds, they are also unsure about the Gurudakshina tax.

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‘‘How would they implement it?’’ asks Confederation of Indian Industries (CII) Deputy Director General Sushanto Sen.

‘‘Increasing fees is a better way of raising funds. How will they decide the tax for the temporary staff, contract staff and unorganised sectors?’’

Sen also feels a need for better marketing by institutes and an interface between them and industries.

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