How not to get Harvard

The issue of foreign universities operating in India could be seen from many positions. The liberal, modernist position is that India should open this sector to anyone willing to invest in it. There should be adequate disclosure requirements, and accreditation and benchmarking agencies. Over a period of time, the market that is the students and their guardians would be able to distinguish between the institutions and the quality of education and costs, and choose the one appropriate for them.

The position that contests the liberal viewpoint says India should be circumspect about the motives of private educational institutions, especially foreign ones. Most of them, this argument claims, are here either to profiteer or to influence us with their ideology, and the Indian citizen needs to be protected from these influences.

The Bill may not be a replica of the anti-liberal position but is close to it. It mandates that no foreign educational institution can function without being recognised as a deemed university by the University Grants Commission UGC. They, however, do not need this approval if they operate in collaboration with recognised Indian institutions; presumably, the Indian institution will ensure the foreign university does not act dishonourably.

The Bill provides for what it says is quality control: universities have to commit that the curriculum, teaching methods and faculty are comparable to what it is offered in its home country. More important, it recommends thought control: it has to ensure that 8220;it takes into account the cultural and linguistic sensitivities of the people of India8221;. It shall also 8220;not offer a course of study which has a content adversely affecting the sovereignty and integrity of India8221;.

How does one ensure that any university maintains its commitments once it is granted recognition? The UGC may recommend derecognition if it is satisfied that the university has not maintained standards of higher education as prescribed in the UGC Act or any other Act. The derecognition will be effective at the end of the academic year, with the onus on the central government to make alternative arrangements for the students enrolled in that university.

What about the employees of a derecognised university? The foreign university has to maintain a corpus fund of at least Rs 10 crore. Of the income arising from this corpus fund, at most 75 per cent may be used for developing the institution, and the remaining has to be reinvested into the corpus fund. This corpus fund may be attached by the central government if it cancels the recognition given to the university, and the funds will be used to make any payments due to employees.

The central government may exempt certain universities of 8220;reputation and standing8221; from any of these provisions. It shall take the advice of an advisory board consisting of distinguished academics as well as chairpersons of UGC and other regulatory bodies such as the All India Council for Technical Education and Medical Council of India.

Of course, this exemption comes with strings. How does one ensure 8220;prevention of commercialisation8221; by these universities? Reputed foreign universities desirous of operating in India are assumed to be doing so out of altruistic motives. The Bill specifies that these universities shall invest any surplus revenue only for the growth and development of the educational institutions established in India. This implies that any surplus made cannot be repatriated. And then, how does one make sure that these universities are committed to staying in India? Easy. They have to bring in at least 51 per cent of the investment required.

The chapter on penalties extends the purview beyond foreign universities. It prescribes penalties for any person associated with an educational institution or an unrecognised foreign institution that offers admission, awards any degree, or solicits or levies fees etc. This implies that even Indian institutions may not award any diplomas without UGC approval. The position of various cultural centres offering courses in foreign languages, culture, etc, would also be under the scanner.

The Bill, in its current form, has faced criticism from across the spectrum. The Left has, of course, opposed this with the view that higher education should not be privatised, foreign institutions should not be permitted, and that the government should increase public investment in education in line with its commitments in the Common Minimum Programme.

But the Bill, liberals argue, is just another version of licence-raj, and will limit the entry of good foreign institutions, defeating the purpose of increasing the options for students. They say the current policy is elitist, as the rich travel abroad to get education that the poor cannot afford, and this Bill will not make any significant change in this situation.

The policy question is fairly simple. Do we want to restrict foreign and private educational institutions from functioning in India? In that case the government has to ensure massive investments in higher education. Otherwise, policies should be geared to encourage private and foreign institutions to invest and operate, and there should be safeguards to ensure quality through transparency and competition.

While taking this call, policymakers should be aware that private and foreign institutions would view education as another business, and will be willing to function in India only if they get adequate returns on their investments. Any other assumption is just plain naiveteacute;.

The writer is director, PRS Legislative Research, New Delhi