Coaching institutes feel regulations to impact revenue, fee

Ashok Misra committee plans to put Rs 2.4 lakh cr industry under regulation

Clearly, coaching institutes don’t seem in agreement with the suggestions put forth by the Ashok Misra Committee even as it mulls placing the Rs 2.4 lakh crore industry under regulation.

The institutes said even if a regulatory body is brought in place, it cannot govern them beyond a certain limit. In no way, they maintained, will any regulation stem their growth.

Regulation of fee and infrastructure would be the two key areas where the government bodies overseeing coaching institutes could play a role. Chandan Dikshit, vice-president, Rao IIT Academy, explained that enforcing regulations for the coaching segment will however, not mean a more effective schooling system.

The IITs and the Union Human Resource Development Ministry have been concerned about more and more students signing up for coaching classes to crack the joint entrance examination – also regarded a ticket to premier technology institutes.

Industry officials said the motive behind the recent proposals was to primarily regulate the fee structure in the institutes. Typically, for a two-year residential programme at IIT-JEE, institutes charge anywhere between Rs 2.5 lakh and Rs 4 lakh, including service tax of 14.5 per cent.

Pramod Maheshwari, CEO, Careerpoint Infosystems, Kota, said, “Operationally, the regulations would not impact the industry. But on the revenue and fee fronts, it might. The industry sees a fee revision of 7-10 per cent every year and post-regulation, it could be impacted.”

Maheshwari’s institute charges between Rs 40,000 and Rs 90,000 per annum per student depending on the class the student seeks admission in. If a student joins the institute in Std IX, he pays Rs 40,000; in Std X, the fee goes up to Rs 50,000. In Std XI and XII, it goes up to Rs 80,000 per annum. After Std XII, the fee is a staggering Rs 90,000 per annum. For residential facilities, the institute charges Rs 2.5 lakh per annum.

Maheshwari said his institute offers state-of-the-art infrastructure facilities, including air-conditioned classrooms, medical and transport services.