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PPP model: No consensus for setting up of schools

Last Updated: Wednesday, May 19, 2010 - 19:46

New Delhi: Consensus eluded a high-level
meeting on Wednesday to finalise a viable economic model for setting
up of 2,500 schools in public-private-partnership mode.

The meeting chaired by HRD Minister Kapil Sibal,
remained inconclusive on the issue of whether the government
should provide assistance to private bodies for creation of
school infrastructure apart from sponsoring up to 1,000
students in a school.

A sub-committee, headed by Gajendra Haldia from
Planning Commission, has finalised most of the teething issues
like sponsoring students by government for these schools.

"It remained inconclusive on certain issues. More
information has been sought from Planning Commission after
which a decision will be taken," a ministry official said.

The committee has prepared a PPP model under which
private bodies will acquire land and set up schools. The
government will sponsor up to 1,000 students at the rate of
per-capita expenditure being incurred by the government in the
Kendriya Vidyalayas. This payment will be inflation-indexed.

The private body will have the quota to give admission
up to another 1,000 students at a price fixed by that agency.
This formula will be in place for 10 years after which the
government will gradually stop sponsoring students. The
government will completely stop sponsoring students by

The per-capita expenditure per year being incurred by
the government in a Central school was Rs 14,000 in 2008-09.
This per-capita expenditure could reach Rs 40,000 by 2027-28.
Till that time, the government will have to spend Rs 87,000
crore towards sponsoring the students.

The Planning Commission has also suggested the
government should give some support towards building of
infrastructure apart from sponsoring the students.

Government is not much inclined to the idea that it
should provide additional assistance apart from the money to
be spent by it towards sponsoring of students.

The government has decided to set up 6,000 model
schools in the country. While 3,500 schools will be set by the
government, the rest 2,500 will come up in PPP mode.

These schools will offer schooling from Class-VI to

The 2,500 schools will cover 40 lakh children, of
which 25 lakh will be from socially and economically backward


First Published: Wednesday, May 19, 2010 - 19:46
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