Setting the agenda for the new UPA government, the Planning Commission has zeroed in on four business models to promote higher education through Public- Private Partnership (PPP) mode.
The four models, which were discussed at the recent meeting of the Planning Commission, are the Basic Infrastructure model, the Outsourcing model, the Hybrid/Mix/Equity model and the Reverse Outsourcing model.
The onus of pursuing one or more models to set up 20 IIITs and 300 polytechnics and other institutes with private sector participation rests with the new government, which is likely to be formed on Friday.
Under the basic infrastructure model, private sector will invest in infrastructure while government would run the operations and management and make annualised payments to the private player.
The outsourcing model suggests that private players should invest in infrastructure and also run the operations and management while government would pay for specific services.
The hybrid model suggests that private player and the government should share investment in infrastructure while operation and management should be taken care of by the former.
The reverse outsourcing last suggests that the government should invest in infrastructure and private players should run operations and management.
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The Plan Panels' Infrastructure Division has consensus over first two models (Basic Infrastructure and Outsourcing) but it has reservations about the two others.
The panel's Education Division, however, is of the view that all four models are not only feasible but also have their own strengths and are not mutually exclusive.
The division opines that these models are possible choices and opportunities of PPP engagements in not only setting up new institutions but also running existing institutions. Therefore, excluding the last two models (Hybrid and Reverse Outsourcing) are not advisable.
Batting for the fourth model, the Education Division says that it suggests a possibility of PPP engagements in existing institutions, which are in dire need of involving private sector to improve their efficiency.
The commission started the spadework to find suitable business models to bring private investment in the higher education sector in April 2008, on the direction of the Prime Minister.