Proposed NEFC to fund primary education too - HRD Ministry
New Delhi: Though the Parliament made a move of national importance by introducing the Right to Education Bill recently but, the Ministry of Human Resource and Development (MHRD) is scuttled with funds crunch.
The HRD Ministry, after realizing that the implementation of the Act will involve a hefty amount of Rs.1.74 lakh crore, has asked the proposed National Education Finance Corporation (NEFC) to fund school education and has asked the government / local bodies to increase enrolment and develop infrastructure.
The NEFC, according to the previous directive was supposed to finance only higher education. However, it is only after the HRD minister Kapil Sibal's orders that funding of Right to Education andschool education in general was also included as the mandate for NEFC.
Sibal feels that bodies like NEFC are the need of the hour and has written to Montek Singh Ahluwalia, Deputy Chairperson of Planning Commission, stressing for the same.
The HRD Ministry is all geared up to calculate the amount needed to achieve its target of 25% Gross Enrolment Ratio (GER). According to the ministry, the project needs approximately Rs.1.55 lakh crore by 2016-17 for higher education to realize its target.
The anticipatory cost in case of school education is Rs.32,000 - Rs.36,000 crore annually including the civil works, teachers' salary, child entitlements and teacher training programmes.
Sibal retorts against banks, who, he feels, treat loans and advances to the education sector in the same manner as that for trade, industry or commerce sectors.
Moreover, he adds that the reimbursement period for loans to educational institutions is at par with those for 'profit' concerns.
Realizing the gravity of the situation, he argued that, "Education is essentially a 'non profit' sector and the existing system needs a thorough change."
The function of NEFC will be to directly sponsor any educational institution recognised under law and finance any government or local body for increasing enrolment and retention.
It is also supposed to grant loans and advances to any scheduled public sector bank by way of refinance for establishment, development or promotion of educational institutions.
The loan from NEFC for an institute will be concessional if 25% of the project cost involves donations or contributions while cheaper for those setting up in remote areas.
source: http://indiaedunews.net/Today/Proposed_NEFC_to_fund_primary_education_too_-_HRD_Ministry_9418/
New Delhi: Though the Parliament made a move of national importance by introducing the Right to Education Bill recently but, the Ministry of Human Resource and Development (MHRD) is scuttled with funds crunch.
The HRD Ministry, after realizing that the implementation of the Act will involve a hefty amount of Rs.1.74 lakh crore, has asked the proposed National Education Finance Corporation (NEFC) to fund school education and has asked the government / local bodies to increase enrolment and develop infrastructure.
The NEFC, according to the previous directive was supposed to finance only higher education. However, it is only after the HRD minister Kapil Sibal's orders that funding of Right to Education andschool education in general was also included as the mandate for NEFC.
Sibal feels that bodies like NEFC are the need of the hour and has written to Montek Singh Ahluwalia, Deputy Chairperson of Planning Commission, stressing for the same.
The HRD Ministry is all geared up to calculate the amount needed to achieve its target of 25% Gross Enrolment Ratio (GER). According to the ministry, the project needs approximately Rs.1.55 lakh crore by 2016-17 for higher education to realize its target.
The anticipatory cost in case of school education is Rs.32,000 - Rs.36,000 crore annually including the civil works, teachers' salary, child entitlements and teacher training programmes.
Sibal retorts against banks, who, he feels, treat loans and advances to the education sector in the same manner as that for trade, industry or commerce sectors.
Moreover, he adds that the reimbursement period for loans to educational institutions is at par with those for 'profit' concerns.
Realizing the gravity of the situation, he argued that, "Education is essentially a 'non profit' sector and the existing system needs a thorough change."
The function of NEFC will be to directly sponsor any educational institution recognised under law and finance any government or local body for increasing enrolment and retention.
It is also supposed to grant loans and advances to any scheduled public sector bank by way of refinance for establishment, development or promotion of educational institutions.
The loan from NEFC for an institute will be concessional if 25% of the project cost involves donations or contributions while cheaper for those setting up in remote areas.
source: http://indiaedunews.net/Today/Proposed_NEFC_to_fund_primary_education_too_-_HRD_Ministry_9418/
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