IIMs charge 18.5 lacs for a 20 months of teaching to teach the best students. They got the land free; initial capital costs came from our taxes and initial losses were funded by us. Now the government wants to determine the fees for private educational institutions while still imposing quality parameters. It is next to impossible to remove capitation fees unless we get a fix of the costs of a publicly funded institution by adding the subsidies back. For example: MBBS fees by law is just about 50K and for that cost no institution would survive.
The best solution is to have admission based only on merit and letting institutions determine fees based on the costs incurred plus a 15% margin. Moreover, Exams conducted by private colleges especially medical college are usually rigged, so single exam like NEET is also a good step.
Government is talking about quality education, infrastructure, good faculty etc. At the same time they are not ready to give any grants/allowances to the private Universities/Colleges. If they do not allow the private institutes to charge a fee which is sustainable, then no one would be interested in being in this industry. I’m definitely not in favour of capitation or donation but the management of the private colleges should and must have a final say on the tuition fees. Yes at the best they can be told to justify the fees charged for every program offered. And to say that the government has no business deciding fees for private businesses, Yes, education improves in quality and quantity when turned into a business.
A country has to spent in order to prepare its essential service providers. I think there is little scope for making profits from the training process. The monopoly of government in the ongoing changes in education sector is sheer hypocrisy on the part of govt and society. The same thing is happening in Telangana now .
Is it to to say that private institutions are making losses? No. Because why are they not shutting down and do something else if they’re running in such losses. No business can be allowed to exist without quality delivery, education is also one. And if it is really loss making business why big people are there in it. Actually private educational institutions wants to be treated like honoured teacher and at same time want huge money too. So, that is also hypocrisy.
There is an aspect about capitation fees which pertains to be a “cash” component and thus goes out of the P/L equation. If institutions do get the freedom to charge as per the market, I doubt that the management will be keen.
Transparent grading system, free market mechanism, Genuine Board of Governors, CSR commitment by the institutions, that’s the only way to nurture the future managers of this nation.
The ratio of fees and money spend per seat for MBBS in government college is totally irrational. It’s practically not possible to set up a medical college in private sector with this ratio. Either govt should subsidise or allow these colleges to charge by justifying.
In Sweden, the tax payers’ money goes into free education (not into pockets). Even the best of colleges are free of cost for students, and hence admissions are truly based on merit. So money is not a deterrent for a good education, only your own intelligence and capabilities.