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Four-S Fortnightly Education Track - Issue 4

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This issue covers 15th March – 31st March 2012

Govt invites private companies to start secondary schools

Following a road map laid out in the budget, the Union government has invited proposals from companies to open secondary schools. The human resource development (HRD) ministry has sought expressions of interest from companies in joining the public-private partnership (PPP) project to open 2,500 schools over the next five years. Private entities will procure the land, and design, develop, operate and manage the schools while the government will offer a 25% infrastructure grant and the recurring cost of education for students sponsored by it. Under the Right to Education Act, at least 25% of a school's students can belong to underprivileged families and are entitled to free education. The government will pay for their schooling.

According to details in the ministry's documents, even companies without any experience in education can bid to open schools. “A corporate entity would be eligible for one school for every 250mn net worth subject to interest bearing deposit of `5mn each for up to three schools and `2.5mn per school thereafter,” it said. An education firm already running at least one Central Board of Secondary Education (CBSE) school—from which at least two consecutive batches have graduated from class X—can qualify for three schools under the PPP project. Firms with schools that have not scaled up to the class X level will be eligible for one school, the ministry said in the document explaining the eligibility framework. A company can qualify for three schools if it has run educational institutes for five years and can deposit `2.5mn for each school. While the interest from the deposits will accrue to the government, the capital will be released to the company in three annual installments after the school starts operation.

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