FURTHER EDUCATION IN INDIA

FURTHER EDUCATION IN INDIA 1. Types of Colleges State governments control their own school systems, with some assistance from the central government. In most states, at the age of 16, students who want to continue their education can attend higher-secondary school programs to complete grade 11 and grade 12. This prepares them for the higher education stage of either vocational colleges, which are practical courses lasting three years, or university. However, some states such as Maharashtra, Orissa and Karnataka, have a system of junior colleges, which are also known as Pre- University Colleges (PUC). The higher secondary school programs are usually within the same high school that the student attended. There are different types of high schools/colleges in India. Each major Indian city has a large number of governement funded and managed high schools catering for mainly the working classes. These schools are all affiliated to the Central Board of Secondary Education (CBSE). There are also central and state funded schools which cater to the very poor section of the society. They are managed by the local Municipal Corporations and are either affiliated to the CBSE or the State Boards. Private schools, catering for the middle and upper class population of India are completely funded by private individuals, bodies, or trusts. They usually follow the national curriculum and a few of the private schools offer international qualifications such as the international Baccalaurete and A-Levels. Most private schools are affiliated to the CBSE or the Indian School Certificate Examination. There are also international schools which teach the British curriculum. 2. Establishing a College in India There are three structures which can be used when setting up a school or college in India: setting up a company under section 25 of the Companies Act 1956; setting up a public trust; or setting up a society. The most common is setting up a company under the Companies Act and this is covered in detail in the higher Education in India section. Institutes of higher education are governed by various bodies such as the All India Council of Technical Education (ICTE) or the University Grants Commission (UGC). These bodies have been put into place to ensure that those who set up private universities or colleges adhere to a high standard. The British Council's UK India Education and Research Initiative (UKIERI) helps UK further education colleges to get involved in India. It was initially a five year programme running from 2006-2011 and was very sucessful. The second stage of the programme will run from 2011-2016. bir_corp\1656781\1 1

HIGHER EDUCATION IN INDIA Higher education in India is one of the most developed in the world, however, the Indian government has yet to allow any foreign institution to create a legally recognised degree programme in India. 1. Types of higher education institutes 1.1 Universities These include Central Universities, funded directly by the Ministry of Human Resources Development (MHRD), and State universities set up and funded by various states. A Central University in India is formed by the Government of India by an Act of Parliament. the President of India acts as the Visitor for all the Central Universities and has the power to nominate members to the Executive Committee, Board of Management, Court and Selection Committees of the University, as per the provisions made in the relevant University Act. The MHRD assists the Visitor in the appointment of the Vice-Chancellor, the Visitor s nominee on the Executive Committees, the Courts and the Selection Committees and also examines each matter that comes up for the Visitor s consideration and orders. The Visitor also exercises powers in respect of amendments, additions and repeal of status; suspension and disallowance of Ordinances; ordering enquiries into the affairs of the Universities; and the resolution of disputes between Selection Committees and the Executive Councils. State level universities are set up by an act of State Legislature. Although the development of State universities is primarily the concern of State Governments, development grants, including grants under special schemes, are provided to all eligible state universities. Such grants facilitate the creation, augmentation and upgrade of infrastructural facilities that are not normally available from the State government or other sources of funds. 1.2 Deemed to be Universities The Central Government of India, which establishes the Central Universities in India, is entrusted with the responsibility of declaring an educational institution as a Deemed University. However the declaration is made on the recommendation of the University Grants Commission (UGC) of India provided the university meets the standard set by the UGC. Ordinarily, only institutions which are established or incorporated by a Central, Provincial or State Act, may use the word university in their name. Deemed University status enables the institute to design their own syllabus and course work. They also get the autonomy to set their own guidelines regarding admission and fees. Some of the Deemed Universities are also allowed to grant degrees in their own name. Those Deemed Universities which continue to perform well eventually get the status of a fully-fledged university. bir_corp\1656781\1 2

1.3 Inter University centres Inter-University Centres are established to provide common advanced centralised facilities and services for universities which are not able to invest heavily in infrastructure and other inputs. They play a vital role in expertise in each field of higher education to teachers and researchers across the country and provide access to the state-of-the-art equipment. The UGC has the responsibility for establishing autonomous Inter-University Centres within the university system. 1.4 Distance Learning providers Open and Distance Learning (ODL) is a system wherein teachers and learners need not necessarily be present either at the same place or same time and is flexible in regard to the timing of teaching and learning. For some people, especially those in more remote areas who cannot regularly access colleges or universities, ODL is the only way they can complete their higher education. There are numerous institutions which offer ODL courses due to the high demand for correspondence courses among a large section of the Indian population. Distance education is provided on Academic, Technical and Professional subjects. Students can opt for undergraduate, postgraduate and doctoral programmes, or alternatively, diploma or certificate level courses. The Indira Gandhi National Open University is the premier institute of ODL, founded mainly to offer distance learning to the less privileged sections of society. bir_corp\1656781\1 3

2. Current situation Universities and their constituent colleges are the main institutes of higher education in India. Most of the universities in India have affiliating colleges where undergraduate courses are being taught. There are currently 23 central universities, 251 state universities, 129 deemed to be universities and 16 inter universities. 3. Students In order for foreign students to attend a higher education institute in India they must have a minimum of 12 years secondary education, with English as one of their subjects. 5% of university places are reserved for foreign students. they must ascertain their eligibility through the Association of Indian Universities (AIU), or by applying directly to the university if they are applying for courses in science, humanities or social sciences. Admission to professional courses is regulated through the Indian Missions. Foreign students nominated through the Missions or the Ministry of External Affairs are not required to sit the entrance exam conducted for admission to the professional courses, although they must have studied English at secondary school. India has 27,000 foreign students and there is no doubt that Indian students are travelling in higher numbers than ever before to pursue higher education abroad. It is estimated that over $13bn is spent every year by about 450,000 Indian students on higher education abroad. The primary reason for such a large number of Indian students seeking professional education abroad is due to the lack of capacity in Indian institutions. 4. Responsibility for higher education in India The University Grants Commission Act 1956 established the University Grants Commission (UGC), a statutory organisation established for the coordination, determination and maintenance of standards of university education. All universities in India are governed by the UGC Act. The Act imposes restrictions on the use of the word university in the name of any institution other than those which are permitted to use the name under the UCG Act. University is defined as a university established or incorporated by or under a Central, Provincial or State Act. Therefore, only institutions so established can be called universities. The Central Government is empowered to declare, by notification in the Official Gazette, that an institution of higher education (other than those established as a university under the UGC Act) can be deemed to be a university. Such a declaration, however, can only be made if recommended by the UGC. There is an express prohibition against any other institution or body corporate using the word university in their title. The UGC Act also states that only a university established or incorporated by a Central, State or Provincial Act, or a deemed to be university, or any other institution specifically powered by an Act of Parliament, shall be entitled to confer or grant degrees. All the requirements of the UGC Act would also be directly applicable to any foreign university attempting to establish itself in India. The UGC advises the Central and State Governments on the measures which are necessary for the development of higher education. Apart from the UGC there bir_corp\1656781\1 4

are also various professional councils that are responsible for recognising courses, promoting professional institutes and providing grants to undergraduate programmes. The Central Government is responsible for major policy relating to higher education in the country, with the overriding intention of improving the quality of higher education in India. It also provides financial grants to the UGC and is responsible for arranging, allocating and distributing the financial resources as required by the UGC for the establishment of Central Universities in India. State Governments are responsible for the establishment of state universities and colleges, and provide plan grants for their development and non-plan grants for their maintenance. Since the State Governments establish and plan for the colleges and universities in the states and the Central Government does this for the Central Universities, it is essential that there is adequate cooperation between the State Governments and the Central Government in the field of higher education. the Central Advisory Board of Education (CABE) has therefore been constituted to assist in the functioning of the two Governments and ensure that parity is maintained. The National Assessment and Accreditation Council (NAAC) was established by the University Grants Commission in 1994 in pursuance of the recommendations made by the National Policy of Education, 1986 and the Programme of Action, 1992 which lay special emphasis on evaluating the quality of higher education in India. The NAAC functions through its General Council and Executive Committee, where educational administrators, policymakers and senior academicians from a cross-section of system of the higher education system are represented. The prime mandate of NAAC is to assess and accredit institutions of higher learning, such as universities and colleges as well as the departments, schools or other institutions and programmes which are affiliated to them. The higher education institutions are assessed and accredited by a two-step approach. In the first step, the institution is required to seek Institutional Eligibility for Quality Assessment and in the second step the institution is assessed and accredited. NAAC has identified seven criteria as the basis for its assessment procedure: curriculum; teaching, learning and evaluation; research, consultancy and extension; infrastructure and learning resources; student support and progression; governance and leadership; and innovative practices. The Association of Indian Universities (AIU) is a registered society under the Societies Registration Act, 1860, with membership of Indian universities. The AIU evaluates the courses, syllabi standards and credits of foreign universities and equates them with the various courses offered by Indian universities. The AIU is mainly concerned with the recognition of degrees or diplomas awarded by the accredited universities in India and abroad for the purpose of admissions to higher education courses at Indian universities. However, the AIU s opinion as to the legitimacy or recognition of any foreign qualification is not binding upon anyone as it is neither a statutory body nor part of the government. The AIU also provides a forum for administrators and academicians of member universities to exchange views and discuss matters of common concern and acts as a bureau of information exchange. The AIU is substantially financed from the annual subscription of the member universities although the Central Government provides grants for meeting part of bir_corp\1656781\1 5

the maintenance and development expenditure, including research studies, workshops, training programmes for university administrators and orientation programmes. The open universities in India are regulated by the Distance Education Council of India (DEC) which maintains the standard, encourages and organises the activities of Open and Distance learning in India. The DEC encourages the state governments and conventional universities to set up open universities and distance education centres. It also arranges for funds to run these universities. The assessment and accreditation of these universities is also done by the DEC. Facilitating and promoting distance education is the ultimate goal of the DEC. 5. Scholarships and student loans There are various scholarships and study loans available to students in India. It is recognised that education is a national priority and that loans for education should therefore be seen as an investment for economic development and prosperity. National Scholarships include: the Central Scheme of Scholarship for College and University Students, which provides financial assistance to meritorious students from low income families to meet a part of their day-to-day expenses while pursuing higher studies; and the Scheme of Scholarship to Students from Non- Hindi Speaking States for Post Matric Studies in Hindi which is awarded to meritorious students studying at past-matric to Ph.D level, for recognised full time courses where Hindi will be one of the subjects studied. External scholarships are also offered to students in India by foreign countries, and are administered by the Ministry of Human Resource Development, Department of Education. The following countries currently offer Scholarships for India: China, Korea, Japan, New Zealand, UK, Belgium, Italy, Mexico, Norway and Turkey. Once the Ministry is notified of the scholarships that will be made available by the particular foreign countries, the Department will then advertise these scholarships and provide the details regarding the amount of scholarship, age limit, educational qualification, experience etc. The selection of candidates who will be considered for the scholarship is made through a Selection Committee, which consists of experts in the field in which the scholarship is being offered. The decision regarding the award of scholarships rests with the relevant foreign country. No scholarship is available to study at under-graduate level except language study and applications of candidates who are residing abroad are not considered. Apart from the scholarships, there are also various loans which are made available to students. The Indian Banks Association sets out a model education loan scheme for pursuing higher education studies in India and abroad and this is recognised by a number of banks across India. 6. Technical education in India The technical education system in India is very important and covers programmes and courses in engineering, technology, management, architecture, town planning, pharmacy, applied art and crafts, hotel management and catering. There is therefore a significant technical education system which has developed. It can broadly be classified into three categories, central government bir_corp\1656781\1 6

funded institutions, state government/state-funded institutions, and self financed institutions. The all India Council for Technical Education (AICTE) was set up in 1945 as an advisory body and then given a statutory basis in 1987 by an Act of Parliament. The AICTE grants approval for starting new technical institutions, for the introduction of new courses and for the variation in the capacity of technical institutions. It also ensures quality development of technical education through the accreditation of technical institutions or programmes and lays down norms and standards for such institutions. The AICTE has delegated the powers to process and grant approval of new institutions, starting new courses and varying the intake capacity for diploma level technical institutions to state governments. The National Board of Accreditation (NBA), a body under AICTE, is the only authorised body in India entrusted with the task of undertaking accreditation of technical education programmes. All programmes on technical education, including those offered by universities, are evaluated and accredited by the NBA. Accreditation is based on an 8 point criteria which includes organisation and governance, financial resources, allocation and utilisation, physical resources, human resources and teaching/learning processes. The AICTE has, by notification dated 16 May 2005, laid down regulations relating to entry and operation of foreign universities or institutions imparting technical education in India. These regulations are called the AICTE Regulations for Entry and Operation of Foreign Universities in India imparting technical education, 2005 ( Regulations ). The Regulations provide that no such foreign university or institute shall establish or operate in India without the express permission of AICTE. The Regulations cover, and apply to: foreign universities or institutes interested in imparting technical education in India leading to the award of diplomas and degrees (including post graduate and doctoral programmes); Indian universities or institutions which are already established and approved by AICTE which are interested in imparting technical education leading to awards of diploma or degrees through collaborative or twinning arrangements with a foreign university; existing collaborative arrangements with foreign universities; existing institutions offering technical education in India; and any other educational activity carried out in India by a foreign university as may be decided by AICTE to bring such activities under the Regulations. In order to gain approval from the AICTE, an application is required to be made by the foreign university or institution, accompanied by a no-objection certificate issued by the relevant embassy in India, certifying the genuineness of the educational institute. In addition, a detailed project report giving full details about the infrastructure facilities, facilities available for instruction, faculty, prescribed fee, courses, curriculum etc needs to be submitted. The AICTE is empowered to prescribe any other condition for registration it considers necessary in the interests of the technical education system of the country. Getting AICTE is a cumbersome process and so far there are very few institutions that have actually been successfully registered with AICTE. 7. Establishing a UK campus in India Despite the fact that many top universities in the world are keen to enter India, foreign universities are currently not allowed to offer degree courses in India, although the country allow 100% foreign investment in the sector. A bill, the Foreign University Entry and Operation (Maintenance of Quality and Prevention bir_corp\1656781\1 7

of Commercialisation) Bill has been presented to Parliament but it is not yet clear whether it will be passed. This would permit foreign higher education institutions to offer their degrees in India. However, the bill has been shelved from being presented in parliament for the foreseeable future. Entry into India is so sought after that approximately 150 foreign institutes offer courses with Indian varsities under various partnership arrangements, although generally these partnerships are with unaccredited, private institutions in India. By far the most popular mode of foreign education delivery in India is the twinning arrangement: part of the course in India, the remaining abroad. The partners share the tuition revenue for the part of the programme taught in India, but the foreign institution keeps all the fees students pay once they transfer. The degree can be awarded by the foreign institution, or the Indian institution, or jointly. Other formats that are currently in existence in India include: Programmatic Collaboration, in which study is completed entirely in India and the degree is awarded jointly by the host Indian institution, and the foreign institution: Franchising, which involves the foreign institution granting permission to a franchisee institution in India to execute the foreign institutions programmes with their name, curriculum and evaluation methods; Study Centres, where the foreign institution ties up with an Indian partner to deliver the course and conduct the examination for the foreign institution. The foreign institution thus establishes a chain of study and examination centres; and Multiple Collaboration, which involve tie-ups with multiple foreign institutions which contribute to the development and content of faculty exchange. Other options include Link Programmes and the establishment of an offshore campus, although neither of these formats are currently in existence. Link Programmes involve part of the study being completed in India and the remaining part being completed in the foreign institution and a degree is then awarded individually by each of the institutions involved for the study at the respective institutions. An offshore campus can be either a sole subsidiary of a foreign university having a branch campus in India, or a subsidiary of a foreign university having an Indian partner who is covered by the UGC Act. In the case of a sole subsidiary, physical and intellectual infrastructure must be owned by the foreign university. Direct supervision and the award of the degree should also be done by the foreign institution. There are essentially three structures which are available when considering setting up a campus in India. These include setting up: a company under section 25 of the Companies Act 1956; a public trust; or a society. However, the most common structure for setting up an education institution is the section 25 company. A company may be licensed as a section 25 company if the Central Government is satisfied that the company will be formed for the purpose of promoting commerce, art, science, religion, charity (including education) or another useful object, and the company will apply its profits only for promoting its objects. The main steps for incorporating a section 25 company are as follows: (1) Application to the Registrar of Companies for availability of name (2) Drafting of the Memorandum and Articles of Association bir_corp\1656781\1 8

(3) Application to the Regional Director for the issue of a licence under section 25 (4) Filing of documents and the licence issued by the Regional Director with the Registrar of Companies (5) Issue of certificate of Incorporation. The Government can attach conditions to the licence granted to the company, and this licence can be revoked if these conditions are contravened. In addition to complying with the conditions attached to the licence, there are also detailed regulatory requirements that have to be adhered to. As mentioned above, the AICTE regulations would also be required to be followed in the case of foreign universities/institutions wishing to impart technical education in India. Likewise, only institutions established under the UGC Act 1957, or deemed to be universities, would be entitled to use the word university in the name of the institution. This document has been prepared by Eversheds LLP. Unless expressly stated to the contrary, the material contained in this document is for general information purposes only. It does not constitute legal or professional advice. Professional or legal advice should be obtained before taking or refraining from any action as a result of the contents of this document. No liability is accepted by Eversheds for any action taken in reliance on the information contained in this document. Any and all information is subject to change. Eversheds LLP 2011. Unauthorised copying of this document is not permitted. If you wish to copy this document, please contact Eversheds LLP for approval. Eversheds LLP is a limited liability partnership. For further information on Eversheds LLP or the Education team, please contact Glynne Stanfield at Eversheds LLP on 0845 497 3806 or email: glynnestanfield@eversheds.com bir_corp\1656781\1 9