The Centre is in discussions with the Planning Commission to earmark funds for the proposed ‘Education Finance Corporation’ that will give sovereign guarantee against educational loans disbursed to poor students.
“Presently, the proposed bill is before the standing committee of the Parliament. Meanwhile, we are in discussions with the Planning Commission to specify modalities of the funding pattern,” Kapil Sibal, Union Human Resource Development Minister, said on the sidelines of ‘Vithal N Chandavarkar Memorial Lecture’ at the Indian Institute of Science here.
He said, there would be some budgetary allocation for this proposed education corporation.
The Union HRD ministry is also mulling to provide loans cheaper to investors in the education sector. “While cheaper rates are provided to investors in the infrastructure sector, it is not so for education industry. So, we will categorise the education industry as part of the priority lending for financial institutions,” Sibal said.
There should be a repayment period of 20-25 years for investors in the education industry, he added.
Referring to the quality of education, he said there are plans for a ‘National Accreditation Authority’ for rating educational institutions.
He also said, all educational malpractices would be dealt severely by his ministry.
In the wake of legal hurdles delaying reforms in the education sector, he said the government would set up educational tribunals to speed up dispute resolution.
Referring to the proposed ‘Foreign Education Bill’, Sibal said, “Only credible players with substantial experience will be allowed to enter India along with strict monitoring of their financials.”
Only 12 per cent of school-going children end up in university in India compared to 60 per cent in developed world.
“We need to increase the number of university goers for a better future,” he added.
Sibal also emphasised the need for a policy framework on vocational education.
“We will have a ‘Vocational Education Policy’ over the next one year that will focus on skill development of the young people,” he added.
Speaking of universalisation of education, he said, “The fund deployed by the central government is sufficient for this programme.”
