Boost for self-financed schools

Updated on: Thursday, December 22, 2011

Even as there is uncertainty over setting up self-financed universities owing to a dispute over provision of reservation for backward classes, the Congress-NCP government has now proposed a bill for the setting up of self-financed schools.

“We have drafted a bill for starting self-financed schools. The proposed law provides for establishing new schools or upgradation of existing schools on a self-finance basis and for setting up endowment funds to meet the liabilities. The bill will be placed before the cabinet for approval and later before the legislature,” a senior official said.

Elaborating on the concept of self-financed schools, the official said private managements registered as trusts, societies or companies, willing to start new schools or upgrade existing schools on self-financed basis, are eligible to apply to the government. “It’s a new concept; there will be less control by the government. Of course, basic formalities will have to be completed and the promoters will have to follow the rules prescribed by the state government on school education,” he said.

It was found that quite a large number of trusts were willing to set up schools, but were dithering from taking a decision owing to stringent laws, particularly on the regulation of fees. In a self-financed school, management will be granted permission to start a new school, fix fees or upgrade an existing school from pre-primary to primary to upper primary or secondary or up to higher secondary. The self-financed school will have to create endowment funds by way of deposits in the national saving certificates or Kissan Vikas Patra or fixed deposits in a nationalised bank and pledge such certificates in the name of the management. For pre-primary schools, it will be Rs 3 lakh, another Rs 3 lakh for each upgradation and Rs 10 lakh for new schools.

“Our concept is clear, the institution will be established, maintained and administered on a self-financing basis and all expenses for any purpose whatsoever shall be met with by the management itself,” an official said.

Provisions Of The Proposed School Bill

•The proposed bill provides for establishing new schools on self-finance basis

• It provides for setting up of an endowment fund, ranging between Rs 3 lakh to Rs 10 lakh

• Application for setting up new schools on self-finance basis will be scrutinised by the state government

• If the management fails to meet expenses, the same will be paid by the office bearers

• No financial assistance will be provided by the government

• Government will have powers to take disciplinary action against errant schools and issue directions

• No school set up under the new law will be allowed to be closed down without sufficient notice

Boost for self-financed schools

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