JOIN USExtend PPP model to fund new universities
It is apparent that there are universities galore in Karnataka, as the number of state-run universities exceeds 40. The University of Mysore (1916) was the only one of its kind in the state until the formation of Karnataka University (1949). Populist political decisions apart, and regardless of the public demand and legislative debate on the need, the stark reality is that all state universities are facing a dearth of finances, faculty, infrastructure, supporting staff, etc. One of the ways in which the daunting problem could be tackled is to adopt a PPP [public-private participation] model for the future expansion of higher education. This strategy is especially relevant as the maintenance of universities has become an onerous task with hefty salaries, allowances, pensions, state-of-the-art facilities, and administrative and overhead expenses.
The establishment of industries on a PPP basis dates back to the early 20th century. For example, Whalchand and Hirachand founded on such ventures a chain of companies, including Hindustan Aircraft (1930) and Scindia Shipyard (1941). Hence, the concept of P-P-P was in vogue even prior to independence. At the present juncture, the private sector, with its abundant financial vigour, is out to be considered as much of a national asset as the public sector in fulfilling the objectives of ‘Aatmanirbhar, the lofty ideal of self-reliance.
In a fast-developing country like India, nurturing the cherished goal of transformation as a developed nation by 2047, it is only natural that there is growing demand for quality higher and professional education. The overriding reason is that it is this domain that holds promise for the cream of nation-builders—not as part of a vast workforce but as the driving force of leadership and entrepreneurship to enrich the knowledge economy.
It is a fact that the State is in a severe financial crunch and unable to meet the capital and recurrent costs of higher education institutions (HEIs). Of the various sources of monetary support the government could avail for the expansion of HEIs (e.g., corporate social responsibility funds, alumni contributions, philanthropic donations from individuals and private endowments, institutional financing from nationalised banks, education cess, etc.), the PPP model could be a viable option.
The PPP model has found favour in defence production, space exploration, the operation of railways and roads, the maintenance of airports and seaports, healthcare facilities, and a host of other public services and amenities. Some time back, the central government urged several departments to explore the PPP model for a chain of useful projects in cutting-edge areas where joint ventures are feasible. Recently, the Union minister for education called upon venture capitalists, including those from abroad, to participate in capital investments in the Indian higher education sector. After the successful completion of the Bangalore International Airport, the Karnataka government in 2018 framed a policy for an array of infra projects on the PPP model, albeit only a few have taken root so far. In this context, the recent decision of the state to open nine medical colleges on a PPP basis is laudable.
The state government possesses the land, if not the liquidity. Hence, a harmonius partnership between the ‘land-rich’ public sector and the ‘cash-rich’ private sector sounds like an ideal match for establishing and maintaining new universities. A mutually acceptable formula could be worked out once the estimates of land value and the cost of essential infrastructure are prepared. Perhaps it is relevant to mention that in the case of IIIT Raichur (2019), the Centre, state, and private sector chose a cost sharing formula of 50, 35, and 15 per cent, respectively.
As is well known, the financial position of both the central and state governments has been destabilised by the pandemic, with a significant fall in GDP; finding sources for adequate funding for new universities is not easy. In spite of considerable constraints, Karnataka has recently decided to open seven new universities from 2023–24 in backward areas in consonance with its committed policy of providing one university in each district.
Ironically, the budgetary allocation announced is so dismal that neither vibrant teaching nor innovative research—the globally recognised twin hallmarks of a functional university—could be undertaken by these toddler HEIs.
It is both a disturbing and disappointing scenario across the country wherein poor institutions in poor locations offer poor education to poor people, leading to intellectual poverty or bankruptcy. Moreover, the lacklustre and medicore HEIs generally end up as ‘teaching shops’ or ‘coaching centres’ and will be classified as ‘glorified degree-distributing factories’. The concerned authorities involved in the expansion of higher education should be wary of the fact that a mere increase in gross enrolment ratio to 50 per cent by 2035 is of no consequence if the young graduates are not equipped with productive knowledge and the requisite skills for gainful employment.
The National Education Policy, 2020 has recommended the PPP model for both school and higher education. With a significant fall in public spending over the years, alternatives to PPP models to reach the sustainable developmental goals (set by the United Nations), of which education is one of the priority areas, seem to be lacking. Secondly, in spite of the recommendation to spend 6 per cent of our GDP on education (Kothari Commission, 1966; NEP-20), neither the Centre nor the states have achieved the target.
The PPP model, if complemented by a system of ‘mentoring’ of nascent universities by established ones, (as was introduced in the case of the new IIT Dharwad by the IIT Bombay), is the ideal approach for future expansion of higher education.
Under the premise of enhancing accessibility, quality cannot and should not be sacrificed. Attaining and sustaining quality necessitates resources, both human and financial. Having accomplished phenomenal growth in higher education in the post-independence era, the country’s thrust and focus should be on quality than quantity. The metamorphosis into a developed nation entails massive investments in many domains of development, including higher education. The private sector must be considered an active partner.
(The writer is a former Vice Chancellor of the University of Mysore.)