Less land, lower investment: Kerala eases private university norms

THIRUVANANTHAPURAM: The Kerala government will introduce a new law providing greater concessions for the establishment of private universities. The Kerala Private Universities (Establishment and Regulation) Bill, which was passed earlier, will be withdrawn through a resolution under Rule 118 in the next Assembly session. The proposed relaxations will relate to mandatory land ownership, possession of land and compulsory fixed deposits.

Under the earlier Bill, trusts, agencies and groups seeking to establish private universities were required to have a Rs 25-crore deposit in the treasury and 10 acres of land. The government is considering reducing the investment requirement to Rs 10 crore and the land requirement to five acres. Another proposal under consideration is to determine the required investment based on the number of courses and students.

The relaxation is being considered in view of the high cost of land and the difficulty of obtaining 10 acres of contiguous land in cities. The government is of the view that increasing the mandatory fixed deposit could eventually be reflected in student fees.

The universities are expected to be multidisciplinary institutions offering various streams, including engineering, law, pharmacy and paramedical courses. More than a dozen agencies are reportedly interested in establishing private universities. Existing colleges may also be converted into universities.

Once the Bill is withdrawn, the government will inform the Centre through the Governor and take further steps in accordance with Article 201 of the Constitution. Kerala is currently the only state in the country without a private university.

Uttar Pradesh to provide up to 100 acres

1. Uttar Pradesh: Up to 100 acres of land will be provided for setting up private universities in rural areas. Stamp duty and registration charges will be reduced by 50% to 100%.
2. Gujarat and Madhya Pradesh: Land is being made available at low rates or on long-term leases. In Karnataka, the investment requirement is Rs 10 crore.
3. Other concessions: For agricultural land, there are full or partial exemptions from land conversion fees. Electricity is also provided at reduced rates for up to seven years.
4. Infrastructure support: Several states provide subsidies covering a fixed percentage of the expenditure incurred on infrastructure development. Financial assistance is also provided for setting up incubators and technology parks. Approvals are facilitated through a single-window system.

“It is not practical to completely prevent students from going outside the state for higher education. The aim is to create equal opportunities in Kerala for education and opportunities that are available anywhere in the world.”

— Roji M. John, Higher Education Minister