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Business News/ Education / News/  Model schools: centre opts out, onus on states
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Model schools: centre opts out, onus on states

School scheme becomes casualty of finance panel recommendation to increase share of states in central taxes

For model schools entirely funded by the centre, the central government had released `3,252.93 crore to states since 2011-12, HRD minister Smriti Irani told the Lok Sabha on 30 November 2014. Photo: Hindustan Times (Hindustan Times)Premium
For model schools entirely funded by the centre, the central government had released `3,252.93 crore to states since 2011-12, HRD minister Smriti Irani told the Lok Sabha on 30 November 2014. Photo: Hindustan Times

(Hindustan Times)

New Delhi: A six-year old plan to build 6,000 model schools as benchmarks of excellence just lost its life support. The unlikely villain: the 14th Finance Commission.

The schools were supposed to be modelled on the human resource development (HRD) ministry-controlled Kendriya Vidyalayas, or central schools. Out of the 6,000, the first group of 3,500 were to be built jointly by central and state governments in educationally backward blocks. In fact, the HRD ministry had already sanctioned funds for at least 947 of these schools. The second category of 2,500 schools were planned for the richer blocks, planned on partnering private firms.

However, the school scheme became a casualty of the finance commission's recommendation to increase the share of taxes transferred to the states, which the central government has accepted, simultaneously cutting several central schemes.

To be sure, while delinking the scheme from central assistance, the budget allowed states to pursue the scheme on their own or wind it up.

“States may decide to continue (or not) with this scheme/program out of their increased resources resulting from the recommendations of the 14th finance commission," the budget said.

An official of the HRD ministry said the scheme has been delinked from central assistance and “the project is now for the states to keep it or not". He declined to be named.

Cutting the financial lifeline also means expected private investments do not materialise either, at a time when the education sector needs more of such funds.

“Adoption of the PPP (public-private partnership) mode would lead to the rapid expansion of access to quality education. The scheme for 2,500 model schools under PPP mode should be viewed as an opportunity to evolve innovative ways to empower and enable non-government players to engage in providing quality education," the HRD ministry had said in a document. Mint had reported the development on 13 August 2013.

The central government could have channelled corporate social responsibility funds for this purpose, said R.C.M. Reddy, managing director and chief executive of IL&FS Education & Technology Services Ltd. “Maybe they are allowing states to do it. While some progressive states may take it up, all states may not be doing it," Reddy said. IL&FS Education was among the 60-plus private companies and trusts shortlisted by the HRD ministry to build schools under the partnership model.

Private entities were expected to procure the land, and develop, operate and manage the schools. The government would offer a 25% infrastructure grant and the recurring cost of education for students sponsored by it. Under the right to education law that mandates compulsory schooling, at least 25% of a school’s students can belong to underprivileged families and are entitled to free education. The government would pay for their schooling. As per the earlier HRD ministry estimate, once fully operational, the central government would be giving at least 5,000 crore to these schools per year.

For the model schools entirely funded by the government, the central government has released 3,252.93 crore to states since 2011-12, HRD minister Smriti Irani told the Lok Sabha on 30 November 2014.

Irani told the Lok Sabha on 25 February that 2,329 model schools have been sanctioned so far to the state governments, of which 1,087 are functional and 519 have been constructed.

The centre missed the opportunity to promote private investment in higher education, according to Narayanan Ramaswamy, partner and head, education practice at consulting firm KPMG. “There is not much on this in the budget and I believe, they could have done better. Education sector needs private investment both at the central and state level and authorities should incentivise this aspect," Ramaswamy said.

India’s school segment was valued at $44 billion ( 2.4 trillion) in 2011 and is expected to reach $144 billion by 2020, according to consulting firm Technopak Advisors Pvt. Ltd.

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Published: 03 Mar 2015, 11:59 PM IST
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