It has been proposed to re-examine the 'not-for-profit' status in higher education so as to allow entry of for-profit institutions in select areas, with the necessary vision to ensure quality and equity.
"To provide private institutions access to long-term and low-interest rate debt, infrastructure status should be given to higher education," the annual status of higher education in states released today said.
The report, prepared by Eduvisors, suggests that educational infrastructure companies should be permitted to build and lease physical facilities to academic institutions with lease revenues subject to the same tax treatment as housing finance companies.
It further suggests that educational trusts, societies and companies should be allowed to raise funds from the capital market by issuing bonds and shares without changing their tax status.
Education companies should be allowed tax exemptions in line with those enjoyed by IT companies, it said along with relaxation of provisions in Foreign Contribution and Regulation Act to allow NRIs to invest in not-for-profit education.
The report also suggests equal access of private institutions to research funding with public institutions.
It said new PPP models in higher education should also be encouraged during the 12th Plan Period, particularly in the establishment of research and innovation institutions.
Based on the 11th Plan experience of setting up IIITs and polytechnics in PPP mode, a framework should be put in place to encourage the spread and growth of PPP models, increase and improve resource utilisation and enhance the quality of education in such institutions, it said.
