Q: But that will happen only when you allow foreign universities to come and then level the field for all.

A: Let us, by all means, decide what is a good regulatory environment for private universities, put it in place and then invite Indian private and foreign universities on the same terms. I am not happy with an arrangement where we have a provision for a foreign university, but if an Indian corporation or a philanthropist wants to set up a university they wont be given the same benefits… that’s not right.

Q: Do we expect corporatisation of education some time soon?

A: This is an important issue… Present provisions do not allow education for profit that can be distributed. It must be a non-profit activity. Many people have questioned that but I am not too concerned on this issue because the great universities of the world are not profit-making organisations. There is nothing wrong with saying that education should not be a profit making body, but it should be possible to make surpluses provided they can be ploughed back. The Indian law actually allows that but it doesn’t quite work that way in practice. There are two problems. First, there is a restriction on fees that are often fixed at unrealistically low levels. I think we need to review its logic. Second, not-for-profit has been interpreted to mean it has to be a society or a trust. Many people have said, and I agree with them, that we should allow educational institutions to take the form of a Section 25 company, which is also a not-for-profit company. This allows much more transparency in the governance structure. I think the present structure is illogical and needs to be changed.

... contd.