Date:31/05/2007 URL: http://www.thehindu.com/2007/05/31/stories/2007053115941400.htm

National

Foreign varsities can't repatriate earnings

Anita Joshua

Stipulation in draft bill

FEIs will be granted deemed university status

Advisory board to look into exemption from reservation

NEW DELHI: Foreign universities which set up shop in India will not be able to take away any part of their earnings if the Foreign Educational Institutions (Regulation of Entry and Operation, Maintenance of Quality and Prevention of Commercialisation) Bill, 2007 becomes law. This condition will be binding on all universities, however reputed. Though the draft bill — which was to be introduced in the last session of Parliament — allows some exemptions to universities of repute, it clearly states "no part of the surplus in revenue generated in India by foreign educational institutions (FEIs) after meeting all expenditure in regard to its operations shall be invested for any purpose other than for the growth and development of the educational institutions established in India."

The FEIs will invest at least 51 per cent of the total capital investment required for establishing an institution in India. These two conditions will be applied uniformly to all FEIs.

Exemption

Exemption from "national treatment" on reservation, admission norms and fees will be given by the Government on the advice of a seven-member advisory board. It will have three distinguished persons from the field of academics — former or current National Research Professors — chairpersons of the University Grants Commission and the All India Council for Technical Education, the president of the Medical Council of India, and the chairman of another statutory authority. The identity of the statutory authority, which will make up the seventh member of the advisory board has not been specified. Not all institutions will be eligible for this exemption. Only FEIs with a certain reputation and standing qualify for it.

Quality of programmes

As per the draft legislation, all FEIs will be granted the deemed university status under Section 3 of the UGC Act. They will have to ensure that the quality of programmes are comparable to the courses on the campus in the home country. They cannot offer courses which have content affecting the sovereignty and integrity of India. The UGC will be empowered to withdraw the deemed university status if the education provider violates any of the stipulates.