Additionally, the recommendations call for granting universities greater autonomy to adjust fees in line with inflation, within reasonable limits, to help ease financial constraints.
The report, titled ‘Expanding quality higher education through states and state public universities’ and released Monday, stated that the State Public Universities (SPUs) serve over 80% of the total student population in higher education, and hence, are central to achieving the primacies of the National Education Policy (NEP) 2020.
According to the NITI Aayog, during consultations with officials from 20 states and UTs and central government, vice-chancellors, senior academics from over 50 SPUs, and heads of state higher education councils, it identified several challenges faced by SPUs. These included financial constraints arising from insufficient state government grants, an over-reliance on traditional revenue streams, and a lack of autonomy to raise funds or adjust fees within reasonable limits.
Additionally, the report highlighted limited administrative autonomy, lack of transparency in the appointment process for both teaching and non-teaching staff and limited engagement with the private sector, among others, as other challenges.
The report made 80 policy recommendations that have been provided under 12 sub-themes across four major thematic areas—quality, funding and financing, governance, and employability.
“With targeted investments and financing, empowered and transparent governance, and a focus on quality teaching and research, SPUs have the potential to become centres of excellence, leading the transformation of India’s higher education system while also contributing to balanced regional development,” said V.K. Paul, member, NITI Aayog, in the report.
The report came days after six Opposition-ruled states jointly opposed the new University Grants Commission draft on teacher qualifications and the grading of higher education institutions under the New Education Policy 2020.
Diversification of revenue sources
While emphasising that education should get allocation equivalent to six percent of the GDP as recommended in the NEP 2020 and increased government support, the report also recommended considering the establishment of a finance agency similar to the HEFA, dedicated specifically to SPUs.
HEFA is a joint venture between Canara Bank and the Ministry of Education designed to provide financial support as loans for developing educational infrastructure and research and development at the educational institutes.
While highlighting SPUs’ over-reliance on traditional revenue streams, the report called for diversifying the funding sources.
The NITI Aayog recommendations included encouraging SPUs to expand self-financed programmes, offer consultancy services to industries and government agencies, as well as strengthen alumni engagement to boost financial contributions.
It also suggested exploring innovative funding models and public-private partnerships (PPPs) to supplement government funding and support initiatives to enhance employability.
Fee autonomy, support tax exemptions
Acknowledging the complexity of fee autonomy, NITI Aayog called for granting SPUs the ability to adjust fees for inflation—five to 10 percent annually—while ensuring scholarships and fee waivers for disadvantaged students.
“Select top SPUs with strong financial management to pilot a fee autonomy programme, with clear guidelines on fee adjustments based on inflation, costs, and affordability. Monitor the impact on finances, enrolment, and quality,” the report recommended.
According to the report, policy changes at both the state- and central government-level should be implemented to grant tax exemptions on revenue from CSR grants, as well as educational and research activities.
Improving governance and autonomy
The report recommended adopting a ‘regulatory-facilitator model’, where the state governments can provide enhanced autonomy to SPUs.
“Enable a shift towards a ‘regulatory-facilitator’ model for SPUs and implement policy changes at the state government level to grant SPUs greater autonomy in areas like curriculum development, faculty recruitment, and financial management. Establish clear guidelines and performance indicators to ensure universities exercise autonomy responsibly and transparently,” the report recommended.
It further recommended formulating state-level higher education vision and policies to cater to the specific needs of SPUs within each state. “This policy should be tailored to address the unique educational requirements rather than adopting a generalised approach. Encourage states to develop micro visions of policies to ensure effective evaluation of quality metrics and promote targeted initiatives for educational enhancement,” it stated.
No ‘political appointments’, localised accreditation
The NITI Aayog report recommended revising the composition of governing councils to ensure a majority of academicians, researchers, alumni and administrators, with minimal or no political appointees.
“Registrars, finance officers, and examination controllers should be appointed from the teaching fraternity to ensure a visionary approach and better understanding of academic requirements,” it stated.
It further recommended localised accreditation and assessment frameworks for SPUs and their affiliated colleges, considering local needs, industry requirements, and national priorities while maintaining global relevance.
(Edited by Madhurita Goswami)
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