Budget reactions

The Finance Minister's allocation to education, especially higher education
will reach elite IITs and NITs and nothing substantial has been added to the
existing allocation to primary education. While it is unfair for all types
of institutions to expect a fair share of the pie, the budget could have
categorized infrastructural bank loans to private higher educational
institutions under priority sector. This move certainly does not call for
any separate budget allocation but just a mere categorization. RBI, working
in tandem with MRHD, can easily identify deserving private institutions to
which such special status loans can be given. At present, loans for private
educational institutions are categorized as real estate loans. On one hand,
the MHRD is ambitiously aiming at a 15% Gross Enrolment Ratio and on the
other, private institutions are scrambling for funds to create
infrastructure. Without such additional incentive in the lending category,
it is not only difficult for private higher educational institutions to meet
competition from foreign Universities but also a challenge to raise funds to
expand infrastructure. The Finance Minister can consider categorizing such
loans under priority sector at concessional rates, as private institutions
cater to 90% of the total higher education enrolment.

With best regards.

S.Vaidhyasubramaniam

Dean-Planning & Development

SASTRA University

Thanjavur - 613 402, Tamilnadu, India

Ph: 91 4362 264100-108, 304000-010 Dir: 304103

Fax: 91 4362 264120

URL: www.sastra.edu

SASTRA UNIVERSITY IS RE-ACCREDITED BY NAAC WITH "A" (Maximum) GRADE.