Govt to allow corporate houses to invest in technical education

In a major policy shift, the government has decided to allow corporate houses to set up technical institutions. The decision which will bring cheer to students will boost engineering and vocational education, which is facing severe crunch of seats due to shortage of institutions. Besides, institutions — both government and private — will be free to set up campus overseas where they can give Indian degrees.

Announcing the revised norms for approval process of institutes regulated by the All India Council for Technical Education (AICTE), Union minister for human resource development (HRD) Kapil Sibal said that efforts are on to facilitate stake holders in establishing good technical institutions in the country.

Till now only bodies registered as trust or societies were allowed to open and run technical institutions. However, under its new reforms the AICTE will now under Section 25 of Company’s Act allow “good corporate” houses to setup technical institutions provided they are registered as non-profit making companies. But no joint ventures will be allowed.

The move is expected to increase about two lakh seats in engineering courses in India, including additional 80,000 seats in management and 2,200 seats in architecture courses, due to other reforms in AICTE approval process which includes relaxing land norms, and approval for starting new courses. At present there are about 30 lakh engineering seats and four lakh management seats in the country.

Students of class XII vocational / technical courses of the state boards can be given direct lateral entry to 2nd year in a diploma programme. Similarly, students of BSc can be admitted to 2nd year lateral entry onto a degree programme provided they have passed mathematics in class XII or BSc level.