The Planning Commission on Thursday night proposed a massive Central funding of nearly Rs 2.5 lakh crore for the education sector during the 11th Plan (2007-2012), representing a four fold increase over the Tenth Plan outlay.

“With the proposed four fold increase in outlay for education, the share of education in the total plan of the 11th Plan will correspondingly increase from 7.7 per cent to 19.4 per cent,”

Planning Commission Deputy Chairman Montek Singh Ahluwalia told newspersons after the two-hour long full meeting of the Planning Commission on education.

He was asked whether the government would resort to fresh taxation like Education Cess to mobilise necessary funds for the education sector. He replied that the panel had not come out with any such proposal.

He added that availability of the necessary funds for education would not be a problem. The finance minister had assured that constant efforts were being made to raise additional resources.

Mr Ahluwalia said that the Planning Commission had suggested gradual hike in tuition fees for higher education in a calibrated manner as part of exercise to raise resources to fund education.Prime Minister Manmohan Singh, who chaired the full meeting of the Planning Commission, endorsed the Plan Panel’s suggestion to the  Centre, to allocate Rs 2.5 lakh crore for the education sector in the 11th Plan. Significantly, in a bid to raise resources for the education sector, he directed the Planning Commission to work on the proposal to hike the fees for higher education.

Dr Singh also favoured roping in private sector in both secondary and higher education.

“We should also seriously look at the proposal for fee increases to reasonable levels in a gradual manner, accompanied by a scheme of extensive scholarships and loans. This will ensure that no student is denied education because of financial constraints,” he said.

In his concluding remark, the prime minister directed that the proposals for setting up 6000 schools covering all blocks, 30 central universities and large capacities in vocational education in backward areas  had to be finalised within the next two months.

“Locational decisions must be taken fast. It is only then that the common man will have faith in our ability to deliver on our promises,” he stated.

He also asserted that the government would give special attention to providing education to minorities, SCs, STs and OBCs.

“Special attention would need to be paid to districts with SC/ST/OBC/minority concentration. The recommendations of the Sachar Committee need to be seriously considered in the government's programme for secondary and higher education,” Singh said.

The Planning Commission submitted a comprehensive agenda to revamp education sector in the country. This includes revision of tuition fee in existing central universities, besides establishment of more IITs and IIMs.

The education sector agenda for the 11th Plan (2007-12) also includes reform of apex institutions like University Grants Commission and All-India Council for Technical Education.

The Plan Panel, in its note, said, since most varsity students hailed from  comfortable income groups, the fee had to be enhanced gradually to cover at least 20 per cent of the recurring cost in existing central universities.The commission also made a case for developing a proper admission and fee policy to check, through continued vigilance and a regulatory mechanism, commercialisation of education and unaffordable capitation fee charged by private institutions.

Centre mulling tax sops for corporates
New Delhi, DHNS: The Centre is mulling a proposal to tap corporate investments in higher education by providing them with full tax exemptions. 

The Left parties, crucial outside supporters of the UPA government, have argued against the increasing entry of corporate entities in education. Despite this, Human Resource Development Minister Arjun Singh stated that the public-private partnership concept should be evolved to give a boost to higher education.

He was addressing a full meeting of the Planning Commission chaired by the prime minister here on Thursday. Mr Singh said that corporate majors should be encouraged to adopt colleges and vocational institutions, particularly in educationally backward districts through fiscal incentives such as 100 per cent deduction of their contribution from their assessable income under Section 80G of the Income Tax Act.