The Hindu Business Line : `Education needs extra funding of Rs 1.2-lakh cr'

New Delhi June 2 Despite several welfare schemes launched by the Centre for providing education loans, less than three per cent students avail themselves of eit against 85 per cent in the UK, 77 per cent in the US and 70 per cent in Germany and France, according to a study by Associated Chambers of Commerce and Industry of India. Though there are many schemes for providing financial aid to poor students, the amount given is very low, the study said.

By 2012, India will contribute an additional 44 million to the global labour pool. During this time, the US workforce will expand by 10 million.

Rapid growth

It also said higher education in India had expanded rapidly over the past two decades. This has been primarily driven by the private sector initiative. Public expenditure on higher education is not even 0.5 per cent of the Gross National Product. The study suggests that education needs additional investment of nearly Rs 1,00,000 crore to Rs 1,20,000 crore a year against present investment of Rs 91,000 crore.

Cess collection

The new education cess will generate Rs 3,500 crore per annum and the total cess collected by the Government would be in the range of about Rs 10,500 crore. This includes Rs 7,000 crore per annum as two per cent cess was imposed a couple of years ago.

The amount collected through cess as per the findings of study should be utilised for primary and partly secondary education and specific guidelines must be issued to all financial institutions including banking mechanism to liberally extend education loans to meritorious candidates particularly in the professional category.

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