1 Public Private Participation in Education Dr. Kumud Bansal UPAAM Lucknow 23 rd June 2010

2 Contents Rationale for PPP Rationale for PPP PPP in School Education PPP in School Education PPP in Higher & Technical Education PPP in Higher & Technical Education The Road ahead The Road ahead Experiences from Maharashtra Experiences from Maharashtra

3 Rationale for PPP PPP is contractual relationship between the Government and the Private Sector for a specific project for which the responsibility of providing public service like education rests with the Government but the infrastructure provision or service delivery is entrusted to private sector. PPP is contractual relationship between the Government and the Private Sector for a specific project for which the responsibility of providing public service like education rests with the Government but the infrastructure provision or service delivery is entrusted to private sector. PPP as a mode of functioning is widely accepted in core sectors like roads, highways, ports, railways, bridges etc. PPP as a mode of functioning is widely accepted in core sectors like roads, highways, ports, railways, bridges etc.

4 Rationale for PPP Easing the budget constraints: There is a huge gap between requirement and provision of financial resources. Easing the budget constraints: There is a huge gap between requirement and provision of financial resources. –Provision made in the XI Plan for education: Outlay (Rs. Crores) Required (Rs. Crores) Outlay (Rs. Crores) Required (Rs. Crores) Higher & Tech. Education 30,000 2,52,00,000 Secondary Education 5,300 1,45,000 Only 10% of the relevant age group of enrolled in colleges and universities. Only 10% of the relevant age group of enrolled in colleges and universities. The NKC has proposed that to reach GER 15% by 2012, we would require 1,500 universities as against 480 today. As against this in the XI Plan only 30 new Central Universities were planned. The resource gap is obvious. The NKC has proposed that to reach GER 15% by 2012, we would require 1,500 universities as against 480 today. As against this in the XI Plan only 30 new Central Universities were planned. The resource gap is obvious.

Rationale for PPP Efficiency gains due to specialization of the private sector e.g. innovative design, appropriate instrument for raising funds, provide support services with greater efficiency. Efficiency gains due to specialization of the private sector e.g. innovative design, appropriate instrument for raising funds, provide support services with greater efficiency. Speed of implementation, reduction of costs due to greater managerial efficiency. Speed of implementation, reduction of costs due to greater managerial efficiency. Accountability for performance – failed school in PPP model would mean no payment. Accountability for performance – failed school in PPP model would mean no payment. Quality monitoring. Government will monitor the quality as payment is related to quality. Quality monitoring. Government will monitor the quality as payment is related to quality. 5

Rationale for PPP Greater flexibility. In PPP the private partner will have higher autonomy and flexibility in the functioning of the educational institutions. Greater flexibility. In PPP the private partner will have higher autonomy and flexibility in the functioning of the educational institutions. 6

PPP in School Education Under PPP contract following range of services can be provided in varying combinations. Under PPP contract following range of services can be provided in varying combinations. –Infrastructure services (design, build, maintain building) –Non-educational services (catering, transport of students etc.) –Support services (IT facility, library, playfield, gymnasium etc.) –Educational services –Teachers’ training –Management of public schools (with existing staff, facilities) –Operation of public schools (provision of teaching /non- teaching services including staff) –Provision of schooling in private schools for publicly funded students (voucher system) 7

PPP in School Education Existing PPP models in India Existing PPP models in India Government aided schools. Government aided schools. Grant of land at concessional rate for schools Grant of land at concessional rate for schools RTE 25% reservation of under privileged children in unaided schools. The cost is to be reimbursed by the State at the rate of per child in Government school. RTE 25% reservation of under privileged children in unaided schools. The cost is to be reimbursed by the State at the rate of per child in Government school. Out of 6,000 model secondary schools, 2,500 secondary schools to be set up under PPP. Out of 6,000 model secondary schools, 2,500 secondary schools to be set up under PPP. 8

PPP in Higher & Technical Education Government aided colleges. Government aided colleges. Land at concessional rate. Land at concessional rate. Vocational courses in degree colleges on self-sustaining basis Vocational courses in degree colleges on self-sustaining basis 9

The Road Ahead The basic infrastructure model – private sector provides the basic infrastructure while Government runs and manages the institutions and makes annual payment to the private sector The basic infrastructure model – private sector provides the basic infrastructure while Government runs and manages the institutions and makes annual payment to the private sector Outsourcing model – Where private sector invests in infrastructure, operates and manages the institutions. Government makes annual payments against outcome. Outsourcing model – Where private sector invests in infrastructure, operates and manages the institutions. Government makes annual payments against outcome. Equity or hybrid model – where investment in infrastructure is shared by Government and private sector and operation and management vests with the private sector. Equity or hybrid model – where investment in infrastructure is shared by Government and private sector and operation and management vests with the private sector. Reverse outsourcing model – where Government invests in infrastructure and private sector takes the responsibility of operation and management. Reverse outsourcing model – where Government invests in infrastructure and private sector takes the responsibility of operation and management. 10

The Road Ahead There is a need for detailed framework for scope, measurable outcome for the contract / partnership with the private sector. There is a need for detailed framework for scope, measurable outcome for the contract / partnership with the private sector. Need for transparent selection criteria. Need for transparent selection criteria. Harmonization of concerns of the Constitutional responsibility of local bodies for school education with the private participation. Harmonization of concerns of the Constitutional responsibility of local bodies for school education with the private participation. Vocational education courses and technical education to be liberally started with the help of private players and industries. Vocational education courses and technical education to be liberally started with the help of private players and industries. World class universities could be either in PPP or private sector. World class universities could be either in PPP or private sector. 11

Experiences from Maharashtra About 94% secondary schools have been set up private management. They were brought in grant-in-aid pattern from early 70s. About 94% secondary schools have been set up private management. They were brought in grant-in-aid pattern from early 70s. Vocational education – 5129 vocational institutions are run by private providers as against 240 Government and 1286 aided institutions. 5 lacs students study in the private unaided vocational institutions. Exams are held by the State Vocational Education Board. Vocational education – 5129 vocational institutions are run by private providers as against 240 Government and 1286 aided institutions. 5 lacs students study in the private unaided vocational institutions. Exams are held by the State Vocational Education Board. 343 ITIs are unaided. 343 ITIs are unaided. Higher education – There are only 11 government colleges. The remaining 3035 colleges are set up by the private management. Higher education – There are only 11 government colleges. The remaining 3035 colleges are set up by the private management. 12

Experiences from Maharashtra Out of 271 engineering colleges, only 6 are Government colleges. The remaining are all private unaided, many of whom have got land on concessional rates from the State Government. Out of 271 engineering colleges, only 6 are Government colleges. The remaining are all private unaided, many of whom have got land on concessional rates from the State Government. Recent private sector participation in evaluation of Government schools by Educational Initiatives and ASER Report prepared by an NGO Prathan. Recent private sector participation in evaluation of Government schools by Educational Initiatives and ASER Report prepared by an NGO Prathan. 13

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