'Pvt sector funding of education likely'

This has been noted by the Associated Chambers of Commerce and Industry of India (Assocham) in its survey which interacted with 1,000 venture capitalist and private equity firms during May and June this year to evaluate their interest in education sector.

As many as 550 respondents reckoned that education is a profitable sector with a potential to attract huge venture capitalist funding and venture capitalists, saying that private equity firms can play a pivotal role in expanding education and support the government in meeting its obligation under the Right to Education Act, the survey noted.

Over half of the respondents expressed their interest to invest in education and said the sector is likely to attract investment between Rs 2,250 crore to Rs 4,500 crore during the course of next three years.

“However, almost 90 per cent of venture capitalists said that policy constraints restraining the funding in education,” the survey underlined.

Lucrative venture
Commenting on the report,  Assocham secretary general D S Rawat said: “Education is one of the most lucrative sectors in the booming Indian economy. Venture capitalists and private equity firms have gauged the potential of this sector and are willing to partner with government to facilitate access to quality education for all.”

The respondents also pointed out that there was lack of clarity on current and future education policy and land rules where schools are built besides provisions regarding licensing higher education capacity, treating education as a non-profit activity, difference in education rules and regulations across the states.

Assocham submitted a copy of its survey to the Human Resource Development Ministry  suggesting how education can attract greater private sector participation.