The Foreign Educational Institutions (Regulation of Entry

and Operations) Bill, 2010

NEED For the bill

(OF course the statistics are boring, I thought that the graphs may better represent
the scenario of employment and availability of graduates in INDIA )

India's working-age population will not peak until 2035, in contrast to China, where the
working-age population topped out this year
Labour forces in South Korea, Taiwan and Singapore will peak in the next five years.
None of India's universities feature in the world's top 200, the 2013/14 rankings by the
London-based education group Quacquarelli Symonds show, versus seven from China.
(/*China - the new benchmark for comparing everything to anything */)
Foreign universities have been largely shut out of India, allowed only to open research
centres, teach non-academic courses or offer degree courses with a local partner.

o Universities can sign MoUs with foreign universities without prior approval of
state or central government or UGC.
Foreign universities can at present open research centers or offer courses on a local
campus.
Number of international students studying in INDIA is very less ( its a point to worry
because they contribute more to GDP in other ways apart from fees)
As per a study conducted by the Association of Indian Universities (AIU), 631 foreign
education providers were operating in the country in 2010
o No central database of foreign universities.
o Only six foreign universities have AICTE approval to collaborate with Indian
institutions; none of these figure highly in global ratings. Also, there are 67
institutions running technical programmes with foreign collaboration without
AICTE approval.

Higher educational institutions (including foreign institutions) are regulated by the University
Grants Commission (UGC) and the All India Council of Technical Education (AICTE).

UGC
Regulates degrees and diplomas awarded by all universities. These include universities
which grant degrees and diplomas through collaboration with foreign educational
institutions
AICTE
regulates foreign institutions, which provide technical education either directly or through
collaboration with Indian partners.
National Knowledge Commission (NKC)
About NKC
o Sam Pitroda Chairman
o Constituted in 2005 by P.M(mannu) - to prepare a blueprint for reform of our
knowledge related institutions and infrastructure
o Submitted 27 reports in 10 languages from 2006-09
Recommendations:
o Estimated that every year 160,000 students from India study abroad, spending
US$4 billion (wealth drain)
o Independent Regulatory Authority for Higher Education (IRAHE) to be
established by an act and reduce AICTE , UGC , Medical council of India
(MCI) ,Bar Council of India (BCI) to that of professional associations (////**
Although not relevant here , but its necessary to know as the regulatory authority
in the proposed bill is a point of debate*////)
/* Opposite to the recommendations of Yashpal Committee */

o To formulate appropriate policies for the entry of foreign institutions into India
and the promotion of Indian institutions abroad
o Ensure a level playing field for foreign and domestic institutions within the
country.
/* There are many other recommendations, but I didnt find it useful in this context */

Yashpal committee report

Set up in 2008 , by then minister of HRD Shri Arjun Singh

To review UGC/AICTE and various other Councils connected with higher education and
then changed to : - Renovation and Rejuvenation of Higher Education
The UGC and AICTE should be subsumed within a single Higher Education Commission.
o Knowledge and curricular details would be determined by appropriate universities
under guidelines of appropriate structures set up by various wings of Higher
Education Commission.
The present regulating bodies should all be subsumed within a National Commission for
Higher Education and Research (NCHER) and have a Constitutional status

Highlights of the BILL

Under the proposed rules, non-profit foreign universities in the top 400 worldwide would
be able to open campuses.
The rules need a final sign-off from the law ministry
The Bill seeks to regulate the entry and operation of foreign educational institutions
seeking to impart higher education.
o Higher education = technical + medical education + diploma.
Every foreign educational institution intending to operate in India has to be notified as a
foreign educational provider by the central government on the recommendation of the
Registrar (Secretary of the University Grants Commission).
Foreign educational providers have to maintain a corpus fund of a minimum of Rs 50
crore. Upto 75% of any income generated from the corpus fund shall be utilized for
developing its institution in India and rest should be put back in the fund.
The central government may exempt any institution, on the advice of the Advisory
Board, from conforming to the requirements of the Bill except the penalty provision and
the ban on revenue repatriation.
Foreign universities can set up branch campuses without an Indian partner (WHY???????)
The programme of study offered by the foreign university has to conform to standards
laid down by the statutory authority (such as UGC, AICTE, Bar Council of India) and the

quality in terms of curriculum, methods of teaching and faculty is comparable to that

offered to students in the main campus.

It proposes to create two systems unitary and affiliation, under one university. Under
this, two separate pro vice-chancellors would be appointed and the duties of a vicechancellor would be divided among them.
/* the highlights have been reproduced in full detail, I didnt want to deny the real juice
by condensing the sentences */

Key Issues
o Present rules foreign universities collaborate with Indian partners : various
mechanisms still couldnt attract highly renowned colleges . Difficult to say
whether the new (stricter) rules will attract them.
o Pro - it would increase choices for students and enhance competition in the sector
o Oppose - it would limit access and lead to commercialization
o Middle path - limited entry based on the reputation of the institution.
o lacks clarity on what provisions the foreign institutions may be given an
exemption , because the foreign institutions have to follow all others laws in force(
as stated in last para of the highlights section).

By.
S.Aruna

References

1. http://www.indianexpress.com/news/india-lures-foreign-colleges-to-cash-in-workingageboom/1177691/?SocialMedia ( the graph and some points of discussion)

2. http://www.knowledgecommission.gov.in/downloads/report2009/eng/3_Recom
mendations.pdf (particularly the section on higher education)
3. http://www.prsindia.org/ ( the highlights section )
4. http://www.thehindu.com/news/national/article3477233.ece
5. http://www.dnaindia.com/bangalore/1536270/report-varsities-bill-a-threat-toeducation-system