Let's hike tuition fees, says plan panel

Central govt funded institutes first target

Students of centrally funded higher educational institutions may have to pay higher tuition fees if the proposals of the Planning Commission for 12th Five Year Plan is approved.

In its final draft proposal, the plan panel has recommended that fees of all the public-funded higher educational institutions should be increased, noting that the fee structure in many of these institutes was “not sustainable” and rather “regressive” as it often tend to benefit better-off students.

“While, about 60 per cent students are enrolled in private unaided institutions and pay full fees, the remaining 40 per cent are enrolled in public-funded institutions and usually pay very low fees. Maintaining low levels of fees is not sustainable. In fact, it is regressive since it often tends to benefit the better-off students,” it said.

The process of raising fees, which started with the elite central institutions like the  IIMs and IITs hiking their fees in recent years, hence, should be continued and brought to reasonable levels. “This should eventually cover all Central institutions,” it recommended.
It also noted that “more and more households are now willing to pay higher fees, with growing prosperity, rising household incomes and strong family values.”

The 12th plan proposal, compiled after months of exercise in coordination with union ministries and departments, will be placed before National Development Council headed by the Prime Minister.

The commission has also suggested that state governments should also be encouraged to raise fees to “reasonable and sustainable” levels in their universities and colleges.

It also recommended that “some flexibility” should also be provided to private institutions in matters related to fee fixation. Such flexibility, however, should be accompanied with transparency and provision of credible information.

Institutions should also be encouraged to mobilise resources through “alternative sources” so that student fees do not form the only source of revenue.

“They should be encouraged to seek funding from diverse stakeholders through external contracts or grants for research, consulting and training projects,” the panel added.