The Foreign University Bill, 2010

The Foreign University (Regulation of entry and operations) bill has been introduced in the Lok Sabha by the MHRD.

This bill seeks to regulate the entry and operations of Foreign Education Provider who want to operate in India. As of now there is no bill that puts a regulation on the operation or entry of any foreign education provider in the country. If this bill gets passed, it will ensure a proper regulation for their entry and operation in the country.

The provisions mentioned in this bill lay down certain criteria that will ensure that Quality Foreign Institutions operate in India. There are few prerequisites for any foreign educational providers, according to this bill if they want to operate in India. Key points of the bill:

1. According to this bill, a “foreign educational institution” is defined as any institution established outside India, which has been offering educational services for a minimum of 20 years and proposes to offer courses which shall be taught through conventional teaching methods (including classroom teaching). This excludes distance education (offered independently or through collaboration, partnership or twinning arrangement).

1. Every foreign institution intending to operate in India has to be notified as a foreign educational provider by the central government on the recommendation of the Registrar (Secretary of UGC) in the prescribed manner. The application has to be endorsed by the High Commission of that country in India. An existing institution has to apply within six months of the Act coming into force.

1. The foreign university has to maintain a corpus fund of a minimum of Rs 50 crore. Maximum of 75% of any income generated from the fund shall be utilized for developing the institution in India and the rest should be reinvested in the fund..

1. The programme of study offered by the foreign university has to conform to standards laid down by the statutory authority (such as UGC, AICTE, Bar Council of India) and the quality in terms of curriculum, methods of teaching and faculty is comparable to that offered to students in the main campus.

1. Every foreign institution has to publish a prospectus 60 days prior to admission which shall include information about fees, amount of fees refundable, approved number of seats, conditions of eligibility, and details of teaching faculty.

1. The central government, based on the recommendation of the UGC, may withdraw recognition in case a foreign educational provider violates any provision of the regulations. The management, teacher, students or parents may make representation against the proposed withdrawal. Any surplus in revenue generated in India by the foreign university has to be invested in the development of the educational institution established by it in India.

1. There are penalties for unfair practises. Any person who offers admission to an unrecognised institution or makes misleading advertisement shall be liable to a minimum fine of Rs 10 lakh (upto Rs 50 lakh) in addition to refunding the fees collected. Any recognised foreign institution that violates the law shall be liable to a fine between Rs 10 and 50 lakh and forfeiture of the corpus fund.

1. There are provisions that allow the government to give certain relaxations to the foreign Universities.

Presently, foreign institutions are allowed to operate in India through various modes. Universities can sign MoUs with foreign universities without prior approval of state or central government or UGC. This Bill allows foreign universities to set up branch campuses without an Indian partner. Experts say that it would increase choices for students, enhance competition in the sector with potential for qualitative improvement in the Indian educational institutions, provide technical skills for the job market and retain some of the funds that flow overseas. Every year thousands of students go abroad to pursue education in the foreign universities. With foreign universities opening up their campuses in India, these students will have the chance to do the same study in India.

This would give a chance to stop billions of rupees going out of the country every year.

The Bill was referred to the Parliamentary Standing Committee on Education for its suggestions and recommendations. The cabinet awaits the standing committee’s recommendation.

NSUI appreciates the efforts of the Central government in coming out with legislations that are envisaged at creating educational opportunities in the country. We would seek your opinion on the bill so that a larger understanding is built on this bill.