Opening Subsidiary Units Law European Essay

Published Date: 02 Nov 2017

Introduction:

In this era of liberalization and globalization of education, it is germane to attract, encourage and promote the private sector investment in the realm of higher education and lay the legislative pathway to establish and incorporate private self-financing universities in India. Establishment of private universities has been a major milestone in the field of higher education in India. Private universities are a new concept where they are established by private sponsoring bodies without financial aid from the state. A number of private universities have been established in various states. It is the right time to develop and implement a progressive framework that provides for opportunities to deserving private institutions and educational promoters, with relevant and sufficient experience and exposure in the field of higher education, so as to contribute towards the expansion of higher education and research in India.

This concept note and analysis is an effort to compare the prevalent state policies, which vary from one state to the other, for establishment of state private universities. The note also puts forth a recommendation for creating a broad framework in the form of guidelines for establishment and incorporation of these universities. The note consists of an analysis and recommendations report and model guidelines for establishment of state private universities. Both these documents have been prepared after careful study and assessment of various state policies in this regard, relevant UGC Regulations and Hon’ble Supreme Court of India judgments.

Our objective in preparing the said concept note and report is to provoke thoughts from readers for this milestone activity in privatisation of higher education. We hope that this note and report will encourage readers to send us their comments, opinions and any other relevant data. We also hope that policy makers and others concerned will find our report useful.

Details:

The private universities of India are established by different State Acts and adhere to the provisions mentioned in the UGC Act, 1956 and also follow the amendments to the same.

The laws state that a private university should be a singular entity that has sufficient teaching, examination, and research facilities in addition to extension services. A private university created as per a State Act operates generally within the territorial boundaries of the state where it is inaugurated.

Opening Subsidiary Units

A university will be permitted to start off-campus centres, study centres, and off-shore campuses after a period of 5 years. Such permission is provided in special circumstances and requires the fulfilment of the following conditions:

The study centers and off-campus centers can be established with previous consent from the UGC and the ruling government of the state where the facility will be based

An off shore campus can only be opened after procuring the necessary permission from the Union Government of India and the government of the country where the center will be based

Either the UGC or an agency selected by it will monitor the total performance of the centers. The centers will be required to follow the management, improvement and academic development related guidelines provided by the UGC

The remittance of funds of the off shore campuses will be done as per the relevant guidelines and laws mentioned by the Reserve Bank of India

If the UGC finds the performance of the said centers to be less than satisfactory the concerned universities will have to stop operating them. However in these circumstances, the well-being of the already enrolled will be properly attended to

Guidelines for Universities

The private universities of India need to satisfy the minimum guidelines for several areas such as:

Programs

Infrastructure

Faculty

Financial feasibility

Following are the statutory organizations, aside from the University Grants Commission (UGC) whose guidelines have to be followed by the new universities in India:

All India Council for Technical Education (AICTE)

Indian Nursing Council (INC)

Bar Council of India (BCI)

Medical Council of India (MCI)

Distance Education Council (DEC)

National Council for Teacher Education (NCTE)

Dental Council of India (DCI)

Pharmacy Control of India (PCI)

With regards to fees and process of admission, the university in question will be required to follow the norms laid down by the UGC and other relevant statutory bodies.

Curriculum Composition

The degree and diploma programs of a new university at the undergraduate and postgraduate level need to have the formal consent of the following constituent bodies of the same:

Board of Studies

Governing/Executive Council

Academic Council

The university will be required to adhere to the norms related to curriculum laid down by the UGC or any other relevant statutory body. It will also need to follow all the modifications that are done to the existing norms in this regard.

The private organization will have to provide detailed information regarding the following areas of its various programs to the UGC before initiating them:

Curriculum structure

System of evaluation and examination

Content

Eligibility criteria for admitting students

Process of teaching and learning

The UGC will conduct a thorough analysis of the information thus provided and also look into the feedback and complaints from the students regarding the curriculum. It will also seek additional opinion on whether the proposed programs have followed the UGC norms and all the possible problematic areas.

The UGC will then inform the concerned university about the shortcomings – the university will consequently need to address these areas and then offer the modified versions of the concerned programs.

Inspection

The UGC conducts inspection of the university at definite intervals. This is also applicable for the off campus centres, offshore campuses, and study centres of the same.

The UGC will also collect important information in this regard from the university in question. This is done as per the UGC (Returns of Information by Universities) Rules, 1979 – the amendments to the same will also have to be followed as and when applicable.

Problems with Opening University in India

The major factor for opening a university in India is to present a new dimension to technology, science, and other emerging disciplines. Infrastructural requirements are another major issue in this regard.

The Indian government normally provides special incentives for inaugurating universities in remote areas. In recent times several deemed universities have been de-affiliated for being unable to satisfy the required guidelines regarding faculty and infrastructure.

Regulatory Authorities and Accreditation Bodies

Ministry of Human Resource Development

T he Ministry of Human Resource Development (MHRD) functions under the overall charge of the Human Resource Development (HRD) Minister, who is assisted by two Ministers of State, one from the Department of School Education and Literacy and one from the Department of Higher Education. MHRD is responsible for laying down national policy on education

as well as planning implementation, including expansion of access, qualitative improvement of universities and technical education. Other focus areas of MHRD include development of Indian languages, scholarships, promotion of books, administration of copyrights acts, and international cooperation in the field of education, including with the United Nations Education, Scientific and Cultural Organisation (UNESCO).

Accreditation Bodies

The National Assessment and Accreditation Council (NAAC) and the National Board of Accreditation (NBA) are the two key entities for accreditation in India. NAAC has been set up by the UGC for accreditation of higher education institutes, while NBA has been set up by the All India Council for Technical Education (AICTE) for accrediting programs in engineering and other related areas. Similarly, the Indian as well as planning implementation, including expansion of access, qualitative improvement of universities and technical education. Other focus areas of MHRD include development of Indian languages, scholarships, promotion of books, administration of copyrights acts, and international cooperation in the field of education, including with the United Council for Agricultural Research (ICAR) has been established to accredit agriculture institutions.

All universities in India require accreditation by law, unless it was created through an act of parliament. Accreditation is provided for a period of five years, after which an institute may seek re-accreditation by NAAC or the other relevant body.

Government Norms:

1.1

 

Objectives

 

 

 

To facilitate collaboration and partnerships between Indian and Foreign University / Institutions in the field of Technical education, Research and Training

To systematize the operation of Foreign Universities / Institutions providing training and other educational services,  in India leading to award of Degree, Diploma, Post Graduate Diploma and Post Diploma Level in technical education on their own,  under any mode of delivery system such as conventional / formal, non-formal and distance mode.

To systematize the operation of Foreign Universities / Institutions providing training and other educational services,  in India leading to award of Degree, Diploma, Post Graduate Diploma and Post Diploma in technical education in collaboration with an Indian educational Institution, under any mode of delivery system such as conventional / formal, non-formal and distance mode.

To safeguard the interest of students’ community in India and ensure uniform maintenance of Norms and Standards as prescribed by various Statutory Bodies.

To ensure accountability for all such educational activities by Foreign Universities / Institutions in India.

To safeguard against entry of non-accredited Universities / Institutions in the Country of origin to impart technical education in India.

To safeguard the nation’s interest and take punitive measures, whenever necessary, against the erring Institutions, on case-to-case basis.

2.0

 

 

Eligibility

 

 

 

Foreign Universities / Institutions interested in imparting technical education on their o/. wn in India leading to award of Diploma and Post Diploma and Degrees including post graduate and doctoral programs.

Indian University / Institution which is already in existence and is duly approved by the Council, interested in imparting technical education leading to award of Degree, Diploma, Post Graduate Diploma and Post Diploma including post graduate and doctoral Programs of a Foreign University through collaborative / twining arrangements.

Offshore Campus of Indian AICTE approved Institutions offering Indian Degree.

Any other educational activity carried out in India, in any manner by the Foreign University / Institutions.

3.0

 

 

Conditions for Approval

 

3.1

 

No Foreign University / Institution shall establish / operate its educational activity in India leading to award of Degree, Diploma, Post Graduate Diploma and Post Diploma Level and Doctoral level programs without the specific prior permission / approval of the Council.

 

3.2

 

Proposal from the Foreign Universities / Institutions shall be considered provided that they themselves establish operation in India or through collaborative arrangements with either an Indian Institution created through Society / Trust / A company established under Section 25 of Companies Act 1956, or the relevant Act in India.  Franchising in any form shall not be allowed.

 

3.3

 

Accreditation by the authorized agency in parent Country with acceptable grades where grading is available, shall be the pre-requisite condition for any Foreign University / Institution to start its operation for imparting technical education in India.

 

3.5

 

The educational Programs to be conducted in India by Foreign Universities/Institutions leading to award of Degree, Diploma, Post Graduate Diploma and Post Diploma Level, shall have the same nomenclature as it exists in their parent Country.  There shall not be any distinction in the academic curriculum, mode of delivery, pattern of examination, etc. and such Degree, Diploma, Post Graduate Diploma and Post Diplomas must be fully recognized in their parent Country.

 

3.6

 

All such Foreign Universities / Institutions which are registered in India for imparting technical education leading to award of Degree, Diploma, Post Graduate Diploma and Post Diploma shall have recognition at par with equivalent Indian Degrees.

 

3.7

 

The proposal from Foreign University seeking equivalence of technical Courses / Programs at Degree, Diploma, Post Graduate Diploma and Post Diploma Level for mutual recognition of qualifications for the purpose of imparting such courses in India under collaborative arrangements or otherwise shall be considered by the Council through its Standing Committee on Equivalence comprising of representatives from UGC, AIU and the Council or such other mechanism as may be decided.

In case such equivalence has already been established by AIU or any recognized Government body, the same may be accepted by the Council for the purpose provided the same are not in dispute.

 

3.8

 

It shall be the responsibility of the concerned Foreign University / Institution to provide for and ensure that all facilities are available the academic requirements are laid down and announced prior to starting of the Program.

 

3.9

 

Any course / Program which jeopardizes the National interest of the Country shall not be allowed to be offered in India.

 

3.10

 

It shall be the responsibility of the concerned Foreign University / Institution offering Program in India to get their AICTE approved centres, accredited by NBA soon after two batches have passed out from such centres. The study centres / Institutions of collaborating private educational service providers which impart technical education leading to the award of a Degree, Diploma, Post Graduate Diploma and Post Diploma of a Foreign University shall be considered as a center of the Foreign University / Institution, even though the management may be provided by the Indian educational Institution.

 

3.11

 

The Foreign University / Institution shall be bound by the advice of AICTE with regard to admissions, entry qualifications and the conduct of courses / Program in technical education as may be communicated to them from time to time.

 

3.12

 

The Council may prescribe any other condition for registration, expedient to do so in the overall interest of the technical education system in the Country

 

3.13

 

The Foreign Universities/Institutions already operating in India, without prior approval of the Council in different forms will have to seek new approval from the Council within 6 months from the date of issuance of this notification or before beginning of resultant academic session, whichever is earlier and shall be governed by the Regulations.

4.0

 

 

Foreign University / Institution setting up a campus in India on its own

 

 

a

Eligibility, Procedure for application and the Process of approval

 

 

b

All such proposals shall be dealt with in accordance with provisions contained in Chapter I of the Hand Book.

5.0

 

 

Collaborations and Twinning Programs

 

5.1

 

The students admitted to the Program should spend at least one semester of the course work of the Program in the Foreign University / Institution in its parent Country

 

5.2

 

The students failing to secure VISA should be enrolled in a similar Program being conducted by the Indian partner Institution, affiliated to a formal University recognized by the UGC or Board of Technical Education in the respective States, as applicable. The Intake of such students will be over and above the approved intake of the Program being conducted by the Indian Partner Institution

For this purpose the Foreign University / Institution, the Indian partner Institution and the concerned affiliating University or Board of Technical Education in the respective States, shall enter in to a tripartite agreement / MOU for the purpose.

The Indian partner Institution shall be affiliated to the University under whose jurisdiction it is located or Board of Technical Education in the respective States in which the Institute is located as applicable.

For Courses where University approval is not mandatory, the Foreign University / Institution, the Indian partner Institution shall enter in to a bipartite agreement / MOU for the purpose.

For Courses where Board of Technical Education in the respective State, approval is not mandatory, the Foreign University / Institution, the Indian partner Institution shall enter in to a bipartite agreement / MOU for the purpose

 

5.3

 

The Degree should be awarded by the Foreign University / Institution only in its parent Country

6.0

 

 

Processing Fee: Paid through the AICTE payment gateway available on the Web-Portal www.aicte-india.org

The payment options available are

Cheque ICICI Bank Only

Corporate Internet banking

Pay Order – (All banks)

If the payment option chosen is 3 (Pay Order), then the Pay order must be drawn payable at the city of deposit of the instrument (ie. outstation instruments are not acceptable).

Applications shall be accepted subject to realization of the Pay Order.

 

6.1

 

Type of Institution

Processing Fee in Rs. Laks

 

 

a

Minority Institution

8.00

 

 

b

Institution set up in Hilly Area in North Eastern States other than Government / Government aided / Central University / State University

8.00

 

 

c

Institution set up exclusively for women other than  Government / Government aided / Central University / State University

8.00

 

 

d

All other  Institutions except Government / Government aided / Central University / State University

8.00

 

 

e

Government / Government aided / Central University / State University

8.00

7.0

 

 

Procedure for Approval

 

7.1

 

Applications received under this provision will be processed as per Clause 15, 16, 17, 18, 19, 20 of chapter II

 

7.2

 

Additional documents shall be necessary while seeking approval for Foreign collaborations and Twinning Programs

No Objection certificate (NOC), from concerned embassy in India with mention of genuineness of educational Institution of the respective country

A Tripartite / Bipartite agreement (MOU), as applicable between the Indian AICTE approved Institution, The Collaborating Foreign University / Institution and the Indian affiliating UGC recognized University or Board of Technical Education in the respective State. This is a fall back arrangement to enable the students who fail to get a VISA to travel abroad, to continue and complete their education in a similar program in India.

At least one semester of Education in the collaborative program to be conducted in India and the Country in which the Foreign collaborating University / Institution is located.

8.0

 

 

Off Shore Indian Campus and award of Indian Degree, Diploma, Post Graduate Diploma and Post Diploma.

 

8.1

 

Proposal for Offshore Campus shall be processed in accordance with the process and provisions as contained in Chapter I.

Provided that the applicant Institution submits a No Objection Certificate or the specific permission granted by the Foreign Country as well as the No objection certificate granted by the Ministry of foreign affairs, GOI, for the purpose of setting up offshore campus.

 

8.2

 

Processing Fees in Rs. Laks for various applications (Degree, Post Graduate Degree, Post Graduate Diploma, Diploma and Post Diploma Institutions) for setting up offshore Campus

In addition to the Processing fee and other amounts as payable or to be deposited as per provisions made in Chapter I, the applicant shall deposit additional amount as provided below.

Visit Charges shall be paid by the applicant Institution as per demand raised by the Council prior to the visit of the proposed offshore Campus.

The applicant institution shall deposit an amount of Rs. 2.0 Cr with the Council for the purpose as provided in clause 6.3 of Chapter I.

9.0

 

 

Punitive Measures and Conditions for Withdrawal

 

9.1

 

If a Foreign University / Institutions fails to abide by any of the conditions as contained in the above regulations and/or consistently refrains from taking corrective actions contrary to the advice of the Council, the Council may after giving reasonable opportunity to the concerned University / Institution through hearing or after making such inquiry at the Council may consider necessary, withdraw the registration granted to such University/Institution to offer their Degree, Diploma, Post Graduate Diploma and Post Diplomas in India and forbid such Foreign University / Institution to offer their registration granted to such University / Institution to offer their Degrees, Diploma and Post Diploma in India and forbid such Foreign University/Institution to either open Centres or enter into any collaborative arrangement with any University / Institution in India.

 

9.2

 

The Council shall also intimate the concerned agencies incl Ministry of External Affairs, Ministry of Home Affairs, RBI of such decisions and advise these agencies to take any or all of the following measures

 

 

a

Refusal / withdrawal for grant of visa to employees / teachers of the said Foreign University / Institution.

 

 

b

Stop repatriation of funds from India to home Country.

 

 

c

Informing the public about the withdrawal of the Registration of such Foreign University/Institution and the consequence thereof

 

9.3

 

In case it comes to the notice of the Council, that a Foreign University is running Diploma and Post Diploma or / and Degree at undergraduate, post-graduate and research level in technical education in India directly or in collaboration with an Indian partner without obtaining certificate of registration, Council shall take immediate steps to action under the Indian Penal Code for Criminal breach of trust, misconduct, fraud and cheating and under other relevant Indian Laws.

 

9.4

 

Once the registration of a Foreign University / Institution is withdrawn, the Council shall make attempt in co-ordination with concerned State Government to re-allocate the students enrolled in such Programs to other approved Institutions of the Council. 

The Foreign University / Institution in such cases, shall have to return the entire fee collected from such students to the Institutions in which such students, are accommodated. 

Such Foreign Institutions shall not be allowed to open any other Centre / Institution or enter into a collaborative arrangement in India for at least 3 years.

10.0

 

 

The Foreign University / Institution willsubmit an annual report giving information of the total number of students enrolled, Programs conducted, total fee collected, amount transferred  to parent Country, investment made, number of students awarded Degree, Diploma, Post Diploma and Post graduate Diploma and any such information that the Council may ask for.

11.0

 

 

The Council may cause an inspection, whenever necessary, with or without prior notice, to assess the infrastructural and other facilities available and / or to verify the compliance of conditions, norms, standards etc. prescribed by the Council from time to time.

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SWOT Analysis: Research in India

Strength

In Indian universities, theï‚· career progression of lecturers and professors is based on their research publications, books written and papers presented in seminars and symposia. Thus research plays an important role in their career progression.

Indian universities areï‚· increasingly collaborating with foreign universities for joint-research projects.

Research and innovation inï‚· areas such as biotechnology and nanotechnology are being taken up increasingly by some of the emerging universities in India.

Large number of qualifiedï‚· scientists and availability of expertise in many research areas.

Large number of scientificï‚· academies, councils and societies are present across India.

Opportunities

Scope for reorganising scientific workforce vis-à-vis organisations.

Re-orientation of researchï‚· priorities on a national basis.

Acceleratingï‚· multidisciplinary research.

Creating incentives/rewardsï‚· for quality work.

Counselling on quality ofï‚· publications.

Deputation to advancedï‚· centres for acquiring latest knowledge and encouraging exchange with other centres.

Weakness

In India, possessing aï‚· masters degree is essential for pursuing a doctorate. Hence, potential research students of law, medicine and engineering often lose their inclination to pursue research as they have to spend seven years of university education, as opposed to five years in other disciplines, to qualify for doctorate.

Limited investments are made in the field of research by the private sector in India. India‘s investment in research and development is about 1 per cent of the GDP as compared to 2.65 per cent in South Korea and 1.3 per cent in China.

Since many professionsï‚· provide more lucrative salaries without the need for a PHD, people are not keen to pursue PhDs.

The university systemï‚· normally recognises quantity, such as number of PhD students guided and the number of papers published, rather than the quality of research and publications.

The range of research areasï‚· available in India are limited, compared to foreign countries.

Threats

Exodus of brilliant brains toï‚· other countries.

Improper use of funds.ï‚·

Lack of scientific auditing and accountability mayï‚· reduce the efficiency of the initiatives.