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Part - IV

• Increase level of tax set-off for donations to educational institutions to 100% even while taxing surpluses in such donee organizations. Current policy, which gives 100% tax benefit to an already tax-exempt organization, while giving only 50% set-off to the Donor, is counter-productive.

• Recognize that Education is a business. The SC is very close to admitting that "an academic degree is a private good for private benefit", and thus the transactions between the provider of a degree and consumer of a degree can only be commerce and not charity!

• Shift control of Institutions, which have at least 20% (say) of Research investments to Ministry of Science and Technology from MHRD. (offering Educational programs for professional enrichment is only an incidental revenue-support measure for such institutions and programs.

We can think of many such measures, which will come to pass, if there is to be world-class higher education in India. Just having half a dozen showpieces is not enough.

If these are the outcomes we want, then what kind of a policy should the government adopt, or be forced to adopt?

• The supreme goal is Universal Literacy.

• Universal and affordable K-12 education is the next achievable goal.

• State Governments will fund the establishment and initial teething period of certain desirable tertiary institutions, with grants from the Union Government where available. The management of these institutions is to be vested in Boards, which have a majority of independent professionals.

• In all educational organizations, regardless of their status as public or private, the right to manage is recognized.

• Tertiary education is independent and not subject to state rule.

• A universally accepted system of Licensing, Regulation and Accreditation is adopted, which is the subject of the Union Government.

• Education is not regarded as Charity and surpluses not used for main objectives are taxed, with a minimum tax level.

• Education is to be treated on par with Infrastructure, IT, Banking, Research and Development etc., for purpose of inviting and regulating FDI.

Various groups, which are fighting the current skirmish for autonomy for IIMs, should realize that this will not win the war! These groups should widen their ambit and include all participants in Tertiary education. We need a Movement for Educational Policy Reforms, and not Hands-Off-IIMS mope-groups!

Concluded.

* Contributed by: -
Prof. P. V. Ramana; BE (Hons) Elec. Engg. from Andhra University, Waltair, India; MBA (Accounting & Finance) from Washington State University, USA; Prof. Engr. (Thermal Power), USA (equiv. to a Doctoral qualification); Receiver of Life Time Achievement award in 2003 for service to Management Education given by World HRD Congress, Boston, USA; he has also founded ITM Group in 1991 and is the current chairman.