SlideShare a Scribd company logo
1 of 52
Download to read offline
The Nataraja Foundation
                     www.nataraja.org.in                                      The Indian Primary & Secondary
                                                                              Education Megaproject

27 th March ' 2010

                                                                              This Excel workbook deals mainly with the
                                                                              financial structures, cost estimates and
                                                                              detailed  financials  of   the  Education
                                                                              Megaproject.
Project Concepts and Objectives                                               The actual project, the thinking behind it, it's
                                                                              design criteria etc have been covered in detail in
                                                                              the project concept document which is available
The Indian Primary & Secondary Education Megaproject                          for free download from the Nataraja Foundation's
                                                                              website www.nataraja.org.in

Over the last 30 years India has spent very little money on building new schools . The focus has instead been on getting quick
results through projects that involved the least possible expenditure. So few new schools were built even though India's
population grew from from approx. 846 million in 1991 to almost 1.15 Billion people in 2009. In the schools that were built,
the quality of infrastructure is very poor. Planning commission data clearly shows that 44 % of schools at the primary level do
not have toilets for instance and 15 % do not have drinking water . Planning Commission data also reveals that nearly 45 % of         Creating a lifestyle around the teaching
the SC / ST children drop out of school by class V and by class XIII in excess of 60 % drop out of school. Various studies            profession
conducted by government of India as well as foreign agencies are showing that the percentage               ( % ) of " Out Of School
Children " is falling but no one is talking about the third rate quality of the schools that the children are being enrolled in and   Low cost yet very elegant housing for
the abysymal working conditions of the teachers who teach there.                                                                      teachers under the programme.

As a result of all this, in 6 - 8 years time , over 100 Million children will exit the school going age group without any             This particular house was built at a cost of
employable skills. This is going to create huge social problems in the country.                                                       Rs 750 / Sq Ft in 2007 in the Vernacular
                                                                                                                                      Architectural Style.
Obviously something has gone terribly wrong with our entire approach to education and we need a robust strategy           to solve
the problems in our education system.                                                                                                 Location : Bangalore
                                                                                                                                      Architect : RL Kumar
Therefore ...
                                                                                                                                      www.vernarch.com
Central to the thinking behind this project is the belief that the main reason for the steep decline in the quality of human
resources in India has been the neglect of the teaching profession and teachers over the last several decades.

In India today a crane operator with 5 years of experience makes more money than an MA in Economics or a MSC in
Maths or a teacher with a proper BEd degree and with 10 years of teaching experience at the primary school level. This
has warped the economic choices that a fresh graduate makes and has resulted in the least qualified individuals
handling the most important of all the jobs in this country (The teaching of our children and tomorrows citizens ).

This project takes note of the fact that India reached the height of its glory when the teacher was at the head of our society
and therefore seeks to bring back this long lost Indian tradition through an innovative mechanism on a truly massive
scale. The project is focused on providing a sound basic education as it is more important to have a sound education at the
primary and secondary levels for a majority of our people than to spend billions of dollars on higher education and have most
of those people going abroad.

The whole project therefore is designed around the primary & secondary school teacher ( Project is not centered on the
student ) with a view to creating a simple yet elegant lifestyle around the teaching profession so as to attract the
best minds towards a career in teaching and thereby correcting a macro imbalance in our society. While doing this , the project
also reaches more under privileged children than any other past or currently planned programme of the Govt. Of India.

This Excel workbook concentrates on the financials of the project. For a detailed understanding of the various
issues, readers are requested to go through the Project concept document which describes the project is proper
detail.


Project Scale :

The project seeks to build a total of 30,000 New schools (with 600 students per school ) under the Public Private
Partnership ( PPP ) format during the period 2012 - 2023. Each school under the programme will share teaching
resources ( Teachers , Teaching aids etc ) with 14 other village schools in it's surrounding area so that a total of 420,000
additional schools are covered under the programme .

The main problem then is money and since the government does not have adequate conventional resources , Innovative
financing mechanisms needed to be found to finance this large education project. The project has therefore focused on
bringing in innovative ideas on the finance side and we have been able to find innovative ways to raise approximately US $
131.38 Billion as one time Capital expenditure to build the schools and US $ 42.57 Billion as yearly operational expenditure
to run the 30,000 new school system as well as it's huge teacher sharing programme that will reach an additional 108 Million
children in 420,000 assisted schools. As a result , once fully commissioned in 2023, a total of upto 126 Million children will
receive high quality education totally free of cost .
bringing in innovative ideas on the finance side and we have been able to find innovative ways to raise approximately US $
131.38 Billion as one time Capital expenditure to build the schools and US $ 42.57 Billion as yearly operational expenditure
to run the 30,000 new school system as well as it's huge teacher sharing programme that will reach an additional 108 Million
children in 420,000 assisted schools. As a result , once fully commissioned in 2023, a total of upto 126 Million children will
receive high quality education totally free of cost .




 Phase            Number of Hub Schools             Number Of Assisted Schools          Commissioning Schedule
                                                ( Teacher Sharing Programme )

 Bootstrap I                 -                                    -                            Q1- Q4 2011                               250 New Teacher Training
                                                                                                                                         Institutes to train 300 teachers
                                                                                                                        Phase II         each per year + 60 New Centers of
 Bootstrap II                -                                    -                            Q1- Q4 2012              Repeat Phase I   Vernacular Archiecture to train 300
                                                                                                                                         Master Masons Each every year


 Phase I              6000 Hub Schools                       84,000                         2012 – 2014

 Phase II             9000 Hub Schools                      220,000                        2015 – 2017

 Phase III          15000 Hub Schools                       420,000                        2018 – 2023


 Phase IV       Possible repeat of total project ( another 30,000 schools ) 2023 – 2029
                 to cover 4,20,000 additional schools                                                               Project Schedule To be Extremely
 _____________________________________________________________________________________                              Aggressive

                                   30,000 New Schools to be commissioned by 2023
 _____________________________________________________________________________________
 Notes :

 1. Each Of Bootstrapping stages I & II will consist of 250 Teacher Training Institutes to train 300 teachers
    each per year + 60 Centers of Vernacular Archiecture to train 300 Master Masons each year. Bootstrap II
    will be a repeat of Bootstrap I

 2. It is not possible to execute Phase I of this project faster as India currently does not have enough
    trained teachers who possess the necessary capability / sensitivity to train young minds. This problem
    will be overcome by 2016 after which project execution velocity will pick up.

 3. Phase IV could essentially be a repeat order which will repeat phases I, II and III in half the time. It will
    be possible to dramatically crash commissioning schedules due to retained learning within the
    project enterprise.

 4. Each day school will operate in two shifts to maximize coverage while keeping costs low.




Economic & Environmental Impacts of the Project :

The following are the main economic and environmental features of the project
which seeks to use Traditional yet very elegant Indian Architecture
( where building life is over 100 years ) without any significant maintenance :

 1. This will be the worlds largest , multi-location environmental project as
    it will use 80 % traditional earth based material and very little cement
    and steel in the construction of the 30,000 schools. The C02 / Green
    house gas addition by this project will therefore be virtually zero. It will
    thus allow huge development without adverse environmental impacts.

 2. Project will in addition lead to the planting of around 150 Million trees
    all over India between 2012 and 2023.

 3. While the project will lead to a direct expenditure of US $ 131.38 Billion
    Billion over the period ( 2012 - 2023 ) on the creation of the low
    cost , yet extremely elegant school campuses, It will provide
    huge additional employment opportunities to millions of Indians . The
    total money multiplier effect on the economy will be in the range of
    3 ( conservative ) to yield a total GDP Net delta addition of US $ 300
    Billion from the construction of this project alone. The high quality
    Human Resourses that will be created by building schools
    designed around the teaching profession will be additional.




Prepared By
Ashish Puntambekar
Project Designer , The Nataraja Foundation
(00-91-9867612368)
ashish.puntambekar@gmail.com

 Analyst Note :

This model is provided for the information of Educationists, Indian Government Officials , Corporates , Financial
Institutions and NGO's and must be seen in conjunction with the project / business spreadsheets prepared for both
the stand alone day schools and residential schools as well as the optimised chain that comprimises the
megaproject.

The Project has been designed based on Information published by the Indian Planning Comission ( XIth Plan
Analyst Note :

This model is provided for the information of Educationists, Indian Government Officials , Corporates , Financial
Institutions and NGO's and must be seen in conjunction with the project / business spreadsheets prepared for both
the stand alone day schools and residential schools as well as the optimised chain that comprimises the
megaproject.

The Project has been designed based on Information published by the Indian Planning Comission ( XIth Plan
documents ) as well as other published material on the National Knowledge Commission / Ministry of HRD
websites. Published papers by experts on the Indian Education System have also been studied and means to
overcome the shortcomings pointed out by the experts have been incorporated in the project design.

While these agencies have not been a party to the conception of this project plan, the author would like to thank his
sources for making this plan possible through their data.
Project Design Basis / Education Philosophy
The Nataraja Foundation
www.nataraja.org.in



                                  " Let the watchword be acceptance and not exclusion "




 Sufi Saint Kabir                                                                                                       Guru Nanak Dev
                                 A project of this size and scale will be a dead and soul-less agglomeration of
                                 buildings and computer networks without a sound philosophy which is timeless
                                 and yet extremely advanced and which seeks, as it were , to bind people of
                                 diverse faiths and lead them towards the realization of their potential as human
                                 beings .

                                 The following words of Vivekananda will therefore serve as a Pole Star for future
                                 Indian thinkers on education “ Let the watchword be acceptance and not
                                 exclusion. Not only toleration , for so called toleration is blasphemy. Toleration
  Mother Teresa                  means that I think you are wrong and I am just allowing you to live. Is it not
                                 blasphemy to think that you and I are allowing others to live ? I accept all
                                                                                                                        Rabindranath Tagore & Gandhiji
                                 religions that were in the past and worship them all. I worship God with everyone
                                 of them, in whatever form they worship him”.

                                 Vivekanand Continues …

                                 “ I shall go to the mosque of the Mohammedan ; I shall enter the Christian’s
                                 church and kneel before the crucifix. I shall enter the Buddhist temple where I
                                 shall take refuge in Buddha and in his law. I shall go into the forest and sit down
                                 in meditation with the Hindu, who is trying to see the light which enlightens the
 Dr. APJ Abdul Kalam in Class
                                 heart of everyone.

                                 Not only shall I do all these things but I shall keep my heart open for all that may
                                 come in the future . Is Gods book finished ? Or is it still a continuous revelation
                                 going on. It is a marvelous book – these spiritual revelations of the world . The
                                 Bible , The Vedas , The Koran and all other sacred books are but so many
                                 pages and an infinite number of pages remain to be unfolded ”.




                                              Please Click Here To Access The Full
                                                Copy of the Project Design Basis /
                                 The   Importance Project PhilosophyIn The Indian Tradition
                                                  Of The Teacher Document

                                 Gurur Brahma,
                                 Gurur Vishnu,
                                 Gurur Devo Mahesh Varah.
                                 Guru Shakshat Para Brahma,
                                 Tasmai Shri Guruve Namah.

                                 The teacher is Lord Brahma as he generates knowledge within us. He is like Lord
                                 Vishnu as he sustains us and guides us on the right path. He is like Lord
                                 Mahesha (Shiva) as he destroys ignorance and thereby enlightens us. My
                                 Salutation to such a Guru, who is verily the Supreme God.




                                Note : The Project Design Basis / Education Philosophy can also be downloaded
                                       from the following website :

                                          www.nataraja.org.in
EDUCATION MEGAPROJECT - OVERALL CAPEX / OPEX SNAPSHOT OF PPP SCHEME
Cash Requirements Summary
                                                                                                Bootstrap 1 Bootstrap 2
US $ / Rs Exchange Rate ( 18th march ' 2010 )                         45.49                                               Phase I                          Phase II                             Phase III

Item                                                                                                   2011       2012       2013     2014         2015          2016     2017      2018       2019         2020       2021        2022        2023        2024

Teachers Training Institutes ( Lot @ Rs 8 Crores Capex &                                                250         250
Rs 4 Crores Opex for each per year )

Pilot Projects ( Schools in 28 States + 7 Union Territories) … Assumed that 100                          35          35                Assumed that In Actual Project
85 % day schools and 15 % Residential Schools                  % of Pilot Cost                                                         Construction 60 % Cost is borne
                                                                 borne in the same                                                     in the 1st year and 40 % in the
                                                                 year                                                                  second year
Masons Training Institutes ( Lot & Rs 5 Crore Capex and Rs                                               60          60                                                                          The Nataraja Foundation
2 Crore Opex for each / year )                                                                                                                                                                    www.nataraja.org.in

Day Schools                                                                        Nos Of                           850      2125     2125         2550          2550     2550     3187        3187          3187      3187
Commissioning Sequence ( For Initiating Opex )                                   Institutions                                          850         2125          2125     2550     2550        2550          3187      3187        3187        3189
Cumulative commissioned                                                                                                                850         2975          5100     7650    10200       12750         15937     19124       22311       25500

Residential Schools                                                                                                 150       375      375          450           450      450       563        563          563        563
Commissioning Sequence ( For Initiating Opex )                                                                                         150          375           375      450       450        450          563        563         563         561
Cumulative commissioned                                                                                                                150          525           900     1350      1800       2250         2813       3376        3939        4500

Total Schools Construction Started Each Year                                                                      1000       2500     2500         3000          3000     3000     3750        3750          3750      3750
Commissioning Sequence ( For Initiating Opex )                                                                                        1000         2500          2500     3000     3000        3000          3750      3750        3750        3750
Cumulative commissioned                                                                                                               1000         3500          6000     9000    12000       15000         18750     22500       26250       30000

Costs Of Teacher Sharing Programme

Costs Of Teachers Guest houses ( A total of 4,20,000                                                                                 14000       35000         35000     42000    42000       42000         52500     52500       52500       52500
Guesthouses will be built under the teacher sharing
programme )
Fuel Costs Of teacher sharing programme : Rs 11.56                                                                                    115.6       404.6         693.6    1040.4   1387.2       1734      2167.5        2601      3034.5        3468        3468
Lakhs / School / Year to cover 14 assisted schools                     0.12                            Opex To Be added

IT System for Existing Schools … ( % Complete )                                                        20%         40%       40%                     Capex & Opex to be be added depending on system
Total Cost Of System with alerts @ Rs 500 Crores :                      500                             100         200       200                    needs and the extent to which the teacher sharing
                                                                                                                                                     programme is implemented.
                                                                     Taken as US $ 5 Billion
IT System for Megaproject Schools … ( % Complete )                   over 10 years ( IT Infra )
( Launching of 12 Satellites + Using 4,00,000 Km of Existing                                              0           0         0      758         1895          1895     2275      2275       2275         2843       2843        2843        2843              0
Fibre Optic Across 30,000 Hub School and 420,000 Assisted                     Costs of
Schools Via VSATS )                                                           Essential Items
                                                                              in Crores
                                                 % Completion                                          30%         70%      100%
Forming and Staffing Of the ISIC with Average Salary @ Rs               450                             135         315       450      450          450           450      450       450        450          450        450         450         450         450
20 Lakh / Year = Rs 450 Crores ( Fully Staffed as below )
( 50 Senior Educationists , 300 Finance Professionals, 1200
Project Engineers, 300 IT Professionals, 100 Lawyers, 300
Architects )

Opex Cost of Teacher Training Institutes                                                               1000       2000       2000     2000         2000          2000     2000      2000       2000         2000       2000        2000        2000        2000
Opex Costs of Masons Training Institutes                                                                120        240        240      240          240           240      240       240        240          240        240         240         240         240
Development Of Vernacular Languages + Urdu+ Hindi + Sanskrit                                                                           933         2333          2333     2800      2800       2800         3500       3500        3500        3500

Capital Expenditure            Rs.( Thousands Of Crores )                                              3.00      13.319    32.371    45.273      54.405        57.813    59.153   66.824     71.938      73.949      73.949      35.610      10.051
                                                  ( US $ Billion )                                     0.66        2.93      7.12      9.95       11.96         12.71     13.00    14.69      15.81       16.26       16.26        7.83        2.21
                        Total Capital Expenditure ( Rs Crores )                      597651
                      Total Capital Expenditure ( US $ Billion )                     131.38

Operational Expenditure                       ( Rs. Crores )                                        1476.84     2998.68   3133.68   9565.31 25551.05 41396.80 60458.36 79473.25 98488.14 122327.60 146097.05 169866.51 193632.60 193632.60
                                                 ( US $ Billion )                                      0.32        0.66      0.69      2.10     5.62     9.10    13.29    17.47    21.65     26.89     32.12     37.34     42.57     42.57

 Sanskrit is possibly the worlds oldest language and it is dying in India. The Education Megaproject therefore allocates Rs 8000 Crores over 10 years to the promotion of Sanskrit in schools and for the digitizing of Sanskrit content as Sanskrit serves as
 the basis for several Indian and even international languages. This will reverse the huge neglect it has suffered neglect over the last 100 years . All other Indian Languages ( Tamil, Bengali, Marathi, Telugu, Gujarati, Kannada etc. ) including most
 importantly Urdu and Hindi together will receive an additional Rs 20,000 Crores over 10 years under the Megaproject for the development of digital content and opening of Institutions for scholars. Total Rs 28,000 Crores. Encouragement of local
 languages will allow the poorest citizen to participate fully in the economy. We want every farmer and labourer to have an equal opportunity and language should not be allowed to be a barrier due to lack of Funds. The Education Megaproject has a
 special large budget for Vernacular Language propogation.
2025        2026        2027        2028        2029        2030        2031        2032        2033        2034        2035        2036        2037        2038        2039        2040




    3468        3468        3468        3468        3468        3468        3468        3468        3468        3468        3468        3468        3468        3468        3468        3468




       0           0           0           0           0           0           0           0           0           0           0           0           0           0           0           0




     450         450         450         450         450         450         450         450         450         450         450         450         450         450         450         450




    2000        2000        2000        2000        2000        2000        2000        2000        2000        2000        2000        2000        2000        2000        2000        2000
     240         240         240         240         240         240         240         240         240         240         240         240         240         240         240         240




193632.60   193632.60   193632.60   193632.60   193632.60   193632.60   193632.60   193632.60   193632.60   193632.60   193632.60   193632.60   193632.60   193632.60   193632.60   193632.60
    42.57       42.57       42.57       42.57       42.57       42.57       42.57       42.57       42.57       42.57       42.57       42.57       42.57       42.57       42.57       42.57
TERM SHEET
Assumptions On Financing / Sources Of Funds :
                                                                                                                              The Nataraja Foundation
US $ / Rs Exchange Rate ( 18th march 2010 )                                         45.49                                      www.nataraja.org.in

Sl. No.   Source Description                                      Estimate of Total            Notional Amount           % Of Source     Amount Available     Cash Available Each
                                                               Possible Corpus               Potentially Available /     Proposed For   Each Year           Year                   (
                                                                      ( US $ Billion )      Year                     (    Education        ( US $ Million )  Thousands of Crores )
                                                                                                 US $ Billion )          Megaproject

YEARLY FUND FLOWS / Annuities

    1     Net Present Value Of Inceremental GDP                           500                          20                    10%               2000                  9098
          Increase after GST implementation starting 1st
          April ' 2010 ( Delta Over Current ) . The Total
          Corpus in the next column is assumed and
          calculated over a 25 year period with a discount
          rate at 3 %. This cash flow will triple by 2025
          when the size of the Indian economy is expected
          to be US $ 4.5 Trillion.




    2     30 % of a proposed new tax on the services                      510                          5.1                   30%               1530                 6959.97
          component in future Infrastructure projects.
          The base case estimate of the delta / net
          additional Infrastructure investment in India over
          the next 10 years is taken at US $ 1.7 Trillion
                   ( Goldman sachs View ). This cash stream
          will triple by 2025 when the size of the Indian
          economy is expected to be US $ 4.5 Trillion.




    3     Graduate Tax Collected From Employers In                       10.11                        2.53                   80%              2022.42                9200
          India. It is assumed here that there are 46
          Million Graduates in India ( 2004 Estimate ). This
          number today is larger. This cash stream will
          double by 2025 when the size of the Indian
          economy is expected to be US $ 4.5 Trillion.




Assumptions On Financing / Sources Of Funds :
US $ / Rs Exchange Rate ( 18th march 2010 )                                           45.49

Sl. No.   Source Description                                        Estimate of Total            Notional Amount           % Of Source     Amount Available Amount Available Each
                                                                 Possible Corpus               Potentially Available /     Proposed For   Each Year           Year                   (
                                                                        ( US $ Billion )      Year                     (    Education        ( US $ Million )  Thousands of Crores )
                                                                                                   US $ Billion )          Megaproject
    4     Quantized Tobin Tax on Forex Transactions. It                     1.1                          1.1                   100%              1095                 4981.16
          has been assumed that the volume of daily
          average forex transactions in India and by
          companies doing business in India is of the order
          of US $ 15 Billion. A Tobin Tax              ( First
          proposed by Nobel laureate James Tobin ) to be
          levied at the rate of 0.02 % on the total volume of
          the transaction which will be quantized as per the
          size of the transaction with higher rates applying
          to larger transactions to prevent speculation on
          the Indian Rupee as it moves towards Capital
          Account Convertability ). This cash stream will
          triple by 2025 when the size of the Indian
          economy is expected to be US $ 4.5 Trillion.


    5     Yearly Rent From Re-developed PSU Land by                         3.00                        3.00                  100%               3000                  13647
          the Indian Social Infrastructure Corporation
          ( ISIC ) Under The Urban Equity Withdrawl
          Programme ( Phase I ) .




    6     Yearly Rent From Redeveloped PSU Land by                         10.00                        10.00                 100%              10000                  45490
          the Indian Social Infrastructure Corporation
          ( ISIC ) Under The Urban Equity Withdrawl
          Programme ( Phase II ) .
Assumptions On Financing / Sources Of Funds :
US $ / Rs Exchange Rate ( 18th march 2010 )                                     45.49


Sl. No.   Source Description                                  Estimate of Total            Notional Amount           % Of Source     Amount Available Amount Available Each
                                                           Possible Corpus               Potentially Available /     Proposed For   Each Year           Year                   (
                                                                  ( US $ Billion )      Year                     (    Education        ( US $ Million )  Thousands of Crores )
                                                                                             US $ Billion )          Megaproject

    7    Teacher / Content Outsourcing Business : The         21.04                               10.52                  40%              4207.52                19140
         Education Megaproject will be employing
         approximately 1.74 Million Teachers across
         India on 5 year Rolling Contracts. It is proposed
         that the terms of the contracts be flexible enough
         to permit teachers to organize themselves into
         teams which could then, in an organized
         manner , produce education content for the world
         market. The revenue earned through this venture
         will be shared by teachers and the ISIC in the
         ratio 60:40 with the larger sum going to the
         participating teachers. They will also participate
         under the Aegis of the ISIC in a Teacher
         Exchange Programme with schools in foreign
         countries. For the purposes of this calculation the
         total teacher strength is assumed as 1.5 Million. It
         is further assumed that just 50 % of the teachers
         will participate in this venture and that each
         teacher's extra earning potential is Rs 5,50,000
         each year.
   8     Students on Fractional Vouchers / NRI Quota           5.10                               5.10                  100%              5103.80              23217.18
         and SAARC / Foreign Students : A majority of
         the students within the Megaproject will be on
         Education Vouchers ( 60 - 70 % ). However some
         37 % + of the students from middle class families
         and well off families will be on fractional
         vouchers with 2 / 3rd subsidy and an additional
         2 - 3 % could be from SAARC countries or NRI /
         Foreign Students who will pay a premium
         ( Double The Voucher value ).
ONE TIME FUND FLOWS - DIRECT FINANCE FOR CONSTRUCTION

    9     Coordinated Equity Withdrawl By the ISIC on                  40                          40                    100              40000                181960.00
          PSU Owned Land in Metros and Large Cities

    10    Un-Utilized Funds with various Ministries and              21.59                        21.59                  100              21590                98212.91
          NGO's



    11    Equity Infusion By Promoter groups for 25,500               6.74                        6.74                   100              6741.48              30666.98
          Day Schools and 4500 Residential Schools


    12    Committed and Un-Utilized Funds Lying with the              15.6                        15.6                   100              15600                70964.40
          World bank and the Asian Development Bank, on
          which the government of India is paying
          Commitment Charges of over Rs 125 Crores
          each year.




Assumptions On Financing / Sources Of Funds :                                                       `


US $ / Rs Exchange Rate ( 18th march 2010 )                                     45.49
Sl. No.   Source Description                                       Estimate of Total         Notional Amount           % Of Source     Amount Available Amount Available Each
                                                                Possible Corpus            Potentially Available /     Proposed For   Each Year           Year                   (
                                                                       ( US $ Billion )   Year                     (    Education        ( US $ Million )  Thousands of Crores )
                                                                                               US $ Billion )          Megaproject

OTHER POTENTIAL SOURCES OF FINANCE

    13    In early March ' 2010 , India's Foreign Exchange                 278                      2.78                   1%                2780                12646.22
          Reserves stood at US $ 278 Billion. This is a
          huge sum and it has earlier been suggested by
          several others that a small part of the RBI's
          reserves should be used to finance Infrastructure
          projects in India. Schools represent essential
          social   Infrastructure   and    the    Education
          megaproject could draw on some of this
          resource.


    14    Dis-investment in Indian Public Sector Entities                   30                        3                    10%               3000                13647.00
          and Banks. This represents a huge potential
          scorce of funds . However successive
          governments have been using dis-investment
          proceeds to help bridge the huge fiscal deficits
          that the government of India runs. In fact this
          money is best used to finance productive capital
          expenditure as in education projects that greatly
          enhance the country's GDP.

          If US $ 1.7 Trillion is to be invested in
          Infrastructure over the next 10 years, the first
          sector that will expand exponentially is
          banking. Government of India will do well to dis-
          invest it's stake in a few large banks to raise
          additional resources while at the same time
          allowing a greater private sector role in the
          banking industry , with strict controls in place of
          course.
Pg 1 0f 4



              Remarks / Critical Assumptions




If net / delta addition to GDP is US $ 20 Billion each year
solely due to GST implementation, then government can
afford to earmark 10 % of that Delta to an Education Mega
Project from the Consolidated Fund Of India through a special
legislation that creates " The Education Megaproject Fund ". It
is being assumed here that the NCAER has taken a 25 year
period for calculating the Net Present value at a 3 % discount
rate. If they have taken a 15 year period instead , then the
yearly sums that will be available will be much larger.



A new tax proposal on the lines of the recently implemented
tax on the services component of housing projects ( 2010
Budget ) will need to be implemented to extend service tax to
the labour and services component of Infrastructure projects.
This will very easily generate a new cash source for creating
the human resources necessary to plan and build large
Infrastructure in India. Right now there is a shortage of 30
million trained people in the construction Industry alone
( Mckinsey 2008 ). So the imposition of a service tax on the
labour / skill component of Infrastructure projects is fully
justified . It is being assumed here that 30 % of an
Infrastructure Projects cost is services and Labour. It is also
being assumed that servoce tax on the Labour and services
component will be @ 10 %.

Employers are being taxed because they are getting access to
qualified graduates free of cost and have not paid a single
paise for their education. This tax will be levied at the rate of 3
% on the Cost to Company ( CTC ) of the employee and will
be paid not by the employee but the employer. Please note
that the current education cess and professional taxes are
separate taxes and are being borne by the employee.
Companies must also pay a tax because they are getting
trained manpower free of cost. We believe that companies will
not be able to pass this tax on to employees as companies will
also be competing with each others in a rapidly growing
economy where skills shortages are acute. Also it has been
realistically assumed that only 25 % of this tax is collectable
from graduates as many work in the un-organized sector.
Many housewifes are graduates too . If independent
professionals such as doctors can be taxed, the collection will
go up dramatically. Also it is assumed that 80 % of this tax will
go for primary education as a person spends 80 % of his time
in school.
Pg 2 Of 4




              Remarks / Critical Assumptions



Given that India is going to be the largest growing market in
the world over the next few years we do not expect business
to move away from India due to the imporition of this tax. The
Imposition of this tax has been considered in the latest
meeting of the G 20 nations in 2009 and It has also been
supported for implementation by none other than our own RBI
governor Dr. D SubbaRao in Dec ' 2009. Since 90 % of the
worlds forex transactions are cleared in just a few financial
centres globally , it will not be difficult to impose this tax which
can provide much needed funds to Education and Healthcare
projects in Rural India.




Subsequent to the sale of 3000 Acres out of a total of 30,000
Acres of prime real estate in Indian Cities, The ISIC will
publish a Global Tender Inviting leading Urban Developers
from around the world to come to India to develop Large Real
Estate Projects. 27,000 Acres of Urban, Government owned
land will be put out on bids under a Public Private Partnership.
Indian companies will participate in the bidding rounds and will
compete with foreign companies. The bids will require project
developers to pay an upfront annuity / yearly instalment of US
$ 3 Billion for the 27,000 acres taken together over the first 10
years and submit plans for the development of Financial
centres where the ISIC will be the owner of 50 % in each
project. Developers will need to come up with ideas whereby
the net earnings to the ISIC will be of the order of US $ 10
Billion each year from the 27,000 Acres of prime real estate
starting from the 7th year after the Bidding. This effective
Urban Equity Withdrawl plan will provide funds for rural
development.




Phase II cashflows will begin to accrue from year 7 onwards
as the PPP projects in Urban Development begin yielding a
return of US $ 10 Billion to the ISIC as explained under V
above.
Pg 3 Of 4



               Remarks / Critical Assumptions




It is being assumed that revenues from the Teaching Content
Development Business and the Overseas Teacher
Exchange Programme will be shared by Teachers / ISIC in
the ratio 60 :40, with 60 % of the revenues going to the
teachers. We have therefore included only the balance 40 %
of revenues as ISIC Income. Further , we do not believe that
this activity will disturb teaching activity in the country as
teachers have considerable amounts of free time and because
the schools have been overstaffed by design not just for
sharing teachers with 420,000 existing and deprived schools
but also with this kind of revenue opportunity clearly in mind.




Fees for Children will be quite affordable to parents as they
well be charged at 1/ 3rd of the value of the voucher. In the
case of Day schools fees will be in the range of Rs 25000 /
child and in the case of fully residential schools, fees will be in
the range of Rs 65,000 - Rs 75,000 which we believe are very
affordable for the Middle Class and above.




The procedure for this is explained in great detail in the project
concept document under construction phase financing.

This financing option has emerged through a study of the
Comptroller & Auditor General's report ( CAG Report ) for
2007 - 08. A special audit committee will be constituted to
trace and recover this money for the Education Megaproject.
This money will come from the Promoters of 30,000 Schools
over a 10 year period ( 2012 - 2022 )


This financing option has emerged through a study of the
Comptroller & Auditor General's report ( CAG Report ) for
2007 - 08. Usually World Bank / ADB Loans are available for
specific projects and cannot usually be re-assigned , We
believe it will be possible to lift the entire corpus for this single
Education Megaproject as the project subsumes within itself
areas as diverse as Women and Child health and education to
rural sanitation and rural roads etc.




                                                         Pg 4 Of 4
Remarks / Critical Assumptions




The Education Megaproject has not included Foreign
Exchange Reserves in its sources in the current Rev 03 of the
project. This represents a potential future source of finance.




The Education Megaproject has not included Dis-investment
proceeds in its sources in the current Rev 03 of the project.
This therefore represents a potential future source of finance.
The Indian Primary & Secondary Education Mega
                                         Project
    The Nataraja Foundation
                                                  Project Legal & Financial Structure
     www.nataraja.org.in
                                                                          Government Of India

                                                           Ministry Of HRD                 Ministry Of Finance
   CONSTRUCTION
   PHASE ( 2012 – 2023 )                                                                                                                                                                                                                Parliament
                                                   Ministry Of
                                                  Disinvestment
                                                 ( FUTURE SOURCE )
                                                                                                Consolidated Fund Of India
   Size Of The Indian Economy
   US $ 1.3 Trillion ( 2010 )

 Exchange Rate ( 18th Mar ‘ 2010 ) :                                                                              Financing Concept is similar to the
 1 US $ = Rs 45.49                                                                                                Golden Quadrangle / Highways
                                                                                                                  Financing.

                                                                                                                  8 different sources of funds are
                                                                                                                  routed to a special " Education
                                                                                                                  Megaproject Fund " … A special
                                                                                                                  Act of Parliament will enable this.
INDIA BASED SOURCES OF FUNDS

1. Yearly Fund Flows
                                                                                                                                                                                         Sovereign
  10 % of New Goods & Services Tax ( GST )                       US $ 2.0 Billion / Year                                                                                                 Guarantee
  Receivables = US $ 2.0 Billion / Year




                                                                                                                                                    US $ 6.64 Billion / Year
                                                                                                                         US $ 6.64 Billion / Year
                                                                                                                 INDIAN & INTERNATIONAL
  30 % of Proposed New Tax on Service                                                                                     BANKS
                                                                 US $ 1.53 Billion / Year
   Component of Infrastructure Projects
   = US $ 1.53 Billion / Year


  Collected From Employers of Graduates                          US $ 2.02 Billion / Year                                                                                      Securitize 10 year annual
  Graduate Tax = US $ 2.02 Billion / Year                                                                                                                                      Receivables at 6 %
                                                                                                                                                                               and Draw US $ 49 Billion

  Quantized Tobin Tax on                                         US $ 1.09 Billion / Year
  Forex Transactions = US $ 1 .09 Billion/Year
2. One Time Fund Flows

                                                                   US $ 3 Billion
                                                                                                                                                                                                                     Education Megaproject
  PSU Owned Metro / Large City Real Estate                                                       US $ 49 Billion For Capex
                                                                                                                                                                                                                            Fund Act
  Equity Withdrawl = US $ 40 Billion
                                                                                                                   Education Megaproject Fund

  Unutilized Funds ( US $ 21.59 Billion ) With
  Various Govt. Ministries and NGO’s                                                             US $ 67.15 Billion for Capex
  as per GAG Report 2007 -08                                                                     + US $ 3 Billion Annual Rent
                                                                     US $ 67.15 Billion                                                                                                                      Special Act Of Parliament to give
                                                                                                                                                                                                             Legal status to SPV and enable
 Sale Of Navratnas, PSU's , Banks = US $ 0.00           Future standby source
                                                                                                                                                                                                             Fast Track Execution based on
                                                         US $ 0.00 Billion
                                                                                                                                        US $ 15.6 Billion                                                    Initial Sovereign Guarantees
                                                    US $ 5.56 Billion                                                                   For Capex
  30,000 Private School Operators                   ( Equity Infusion )




                                                                                      Indian Social Infrastructure                                                                                                   ( ISIC Act )
                                                                                          Corporation ( ISIC )
                                                                                                                                                                US $ 15.6 Billion                          Sovereign Guarantee
   Low cost Loans for Capex to                                                                                                                                  Of Committed But                           For School Capex Loans
   School Concessionaires. This                                                                                                                                 Un-Utilized
   is in addition to the US $ 15.6                                                                                                                              Funds
   Billion that is paid as a bullet
   payment to the ISIC
                                                                                                                                                                                             World                      ADB
                                                                                                                                                                                             Bank




                                                    Capacity To Raise / Spend US $ 134.75 Billion OR Rs 612,977 Crores

                                                    Project Construction Cost = 131.38 Billion
                                                    ( 30,000 Hub Schools + Infrastructure for Teachers Sharing Programme )

                                                    Financial plan therefore raises sufficient funds for construction
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
The Indian Primary & Secondary Education Mega
                                           Project
                                                    Project Legal & Financial Structure
    The Nataraja Foundation
     www.nataraja.org.in                                                 Government Of India

                                                              Ministry Of HRD                Ministry Of Finance
   BOT OPERATIONS
   PHASE                                                                                                                                                                                                                                                     Parliament
                                                      Ministry Of
                                                     Disinvestment
                                                    ( FUTURE SOURCE )
                                                                                                  Consolidated Fund Of India
   Size Of The Indian Economy
   US $ 4.5 Trillion ( 2025 )

  Exchange Rate ( 18th Mar ‘ 2010 ) :
  1 US $ = Rs 45.49


                                                                                                                                                  Key Point to note is the size of the
INDIA BASED SOURCES OF FUNDS                                                                                                                      Indian Economy in 2025

1. Yearly Fund Flows

  10 % of New General Service Tax Based                           US $ 6.0 Billion / Year
                                                                                                                                                  Students on Fractional
  GST Receivables = US $ 6.00 Billion / Year
                                                                                                                                                  Vouchers




                                                                                                                                                          US $ 4.88 Billion / Year
                                                                                                                                                  and NRI / SAARC Quota




                                                                                                                         US $ 17.86 Billion /
  30 % of Proposed New Tax on Service                             US $ 4.59 Billion / Year
  Component of Infrastructure Projects




                                                                                                                                Year
  = US $ 4.59 Billion / Year                                                                                                                           Teacher
                                                                                                                                                       Outsourcing
                                                                                                                                                       Business




                                                                                                                                                                                       US $ 4.207 Billion /
  Graduate Tax = US $ 4.0 Billion / Year                           US $ 4.0 Billion / Year
  Collected From Employers of Graduates




                                                                                                                                                                                              Year
                                                                                                                                                                                                              US $ 3.55 Billion
                                                                                                                                                                                     Securitization
  Quantized Tobin Tax on Forex Transactions =                      US $ 3.27 Billion / Year                                                                                          Facility Pending Grant




                                                                                                                                                                                                                   / Year
  US $ 3.27 Billion / Year


                                                                   US $ 10 Billion
  Yearly Rent From High FSI Re-Developed
  PSU Properties all over India = US $ 10 Billion                                                                                                                                                                                         Education Megaproject
                                                                                                US $ 17.86 Billion For                                                                                                                           Fund Act
                                                                                                Opex


                                                                                                 US $ 4.5 Billion                                  US $ 12.64 Billion
                                                                                                 Service Tax Feedback                              For Opex

                                                                                                                                                                                                                                  Special Act Of Parliament to give
                                           Service Tax                                             US $ 10.0 Billion Annual Rent Received                                                                                         Legal status to SPV and enable
                                                                                                   From Developer Partnerships                                                                                                    Fast Track Execution based on
                                           @ 10 %                                                                                                                                                                                 Initial Sovereign Guarantees
                                                                                                                                                Education Megaproject Fund



                                                                                                               Capacity To Raise & Spend US $ 45 Billion / Year

                                                                                     Indian Social Infrastructure                                                                                                                         ( ISIC Act )
                                                                                         Corporation ( ISIC )
                           US $ 45 Billion Revenue
                           For Created Ecosystem
                                                                                                      Spend US $ 45 Billion On Primary & Secondary School Operations / year
                                                                                                      +
                                                                                                      PHASE II Expansion ( if Any ) through securitization of specific cashflows



                                                                                                                                                                                            18 Million Students On Education Vouchers
                                                                               30,000 Private School Operators                                    TEACH                                     ( Including 108 Million Students
                                                                                                                                                                                            Under Teacher Sharing Programme )
                                                                                                                                                                                            = 126 Million Children

                                                                                Service Providers Ecosystem
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
INSTITUTIONAL STRUCTURES , LAND BANKS AND
   URBAN EQUITY WITHDRAWL & MISC ISSUES
                                                                              The Indian Primary & Secondary Education Mega Project




                                                                                                                                 Government Of India
               The Nataraja Foundation                                                                                                              Ministry Of Finance
                www.nataraja.org.in
                                                                                                             Ministry Of HRD


                                                                                                                Ministry Of
                                                                                                               Disinvestment
                                                                                                             ( FUTURE SOURCE )
                                                                                                                                                                                                                                  Parliament



                                                                                                                                                                                   ISIC Act



                                                                                                25 % Equity                                                                                   75 % Equity
                                                                                Central                                 "The Indian Social Infrastructure Corporation "                                                     28 State
                                                                              Government                                                    sets up                                                                       Governments
                                                                                                30,000 Acres              The Primary & Secondary Education Megaproject SPV                    900,000 Acres
                                                                                                                                                                                         Of Land For Setting Up Schools
                                                                                                Of Land all Over
This 9,30,000 Acres , can be visualized approximately as a strip of Land 62                          India
Km by 60 Km. It is not much land for India taken as a whole. Out of this,                                                     with Land Bank of 9,30,000 Acres all over India
30,000 Acres can be easily spared / collected by the central government
from PSU's and government organizations in Metros and B category
Towns . The balance 9,00,000 Acres will be in Villages and towns in 28
States and 7 Union Territories all over India and will be given out on bids
for setting up Schools and Hospitals.                                          Land For Equity Deal
                                                                                                                                                                                        Service Partners
                                                                                                                                                                                         PPP Contracts
                                                                                                                                           The Indian                                                                      Comptroller & Auditor General
     Commercial Land Bank :
     30,000 Acres to be held in Land Bank . Upto 24 % of Cherry Picked land to be sold to Finance 40 %                           Primary & Secondary Education                                                             Of India to Monitor All ISIC Cashflows + All
     Capex of Primary & Secondary Education Project / Healthcare Megaproject . Balance 76 % land to                                       Mega Project                                                                     Sales & Lease Rentals Of ISIC Related Land
     be given on rent in towns and cities to large city developers so as to earn Cash to meet project                                  ( Executive Board )                                                                 Under This Project.
     Operating Cash Requirements so as to subsidize Education and Healthcare provision to Low Income
     Groups.



 Note on PSU Land Based Urban Equity Withdrawl :                                                                   10 % of 30,000 Acres
                                                                                                                   Cherry Picked
 If just 10 % of the land transferred in Metros and Large Towns to the ISIC from PSU's is                          Prime Real Estate in Big                                                                 Issue Of initial capital (2015 - 2016).
 prime real estate it will be approximately 3,000 Acres ( all over India as the SPV in all will                    Cities and Important Towns
                                                                                                                   to be sold to finance 40 %                                                               Stock : India Domestic & International Offering
 have 9,30,000 acres, of which 30,000 acres will be held in the Land Bank while 900,000 will                       of Project Capex. All such
 go for the school project & Healthcare project). This 10 % land will be worth approximately                       sales will be under a
                                                                                                                                                                                                            Of 500 Million Equity Shares or Rs 100 each
 180,000 crores ( Approximate land cost in a Metro per acre has been taken as Rs 60 Crores                         Transperant bidding                                                                      For a premium of @ Rs 400 Per Share to raise
 while actual prices range from Rs 400 Crores / Acre in Mumbai to Rs 2 Crores / Acre in a                          process and SPV land sold                                                                US $ 5.28 Billion as Equity
                                                                                                                   will have an FSI ranging
 small town ).                                                                                                     from 4 - 16 for creation
                                                                                                                   of Financial Centers in
                                                                                                                                                                                                            Bonds : International Bond Offering Sufficient
 The land bank will make the SPV one of the highest net worth companies on the Indian Stock                        major Towns. Thereby                                                                     For 3 Years of Project Construction :
 Exchanges. It will then be possible for the SPV to raise its own resources by selling land                        maximizing development of
                                                                                                                   scarce land as also available                                                            Targeted Debt / Equity Ratio = 3 : 1
 ( Through a competitive and transperant bidding process ) to developers or by issuing long                        funding for the project.
 term tax free bonds on par with RBI bonds. Central and state governments will take land from                                                                                                               Bond Amount = US $ 15.85 Billion
 PSU 's and state government undertakings which are not utilizing the land optimally and                                                                                                                    Coupon rate =
 transfer it to the ISIC which is working towards a National Mission. The Chief Secrateries of                                                                                                              Duration     = 5 Years
 the 28 states will be on the board of the ISIC so each states interests will be fully protected.

 Addressing PSU Concerns
 To fully accomodate the commercial concerns of PSU and their government and private
 shareholders, they will get an enhanced FSI ( either on the same plot or on their other                                                              Balance 90 % land to be
                                                                                                                                                                                                          The US $ 15.85 Billion Bond issue will help finance any
 properties that are not being given away ) . For instance if a PSU is giving away prime real                                                         given on rent by ISIC to large developers
                                                                                                                                                      from around the world ( including Indian            shortfall in Capital Requirements.
 estate in Mumbai city which currently has an FSI of 2.66 , they will get an FSI of 3.50 in                                                           developers ) to
 another property in the same locality ( if they own two properties close to each other and are                                                       Provide Operating Cash
 giving away only one property) or an FSI of 5.0 in a less valuable location, in a manner that                     Project Land                       to Finance Education, Food and Clothing
 their commercial interest is protected. They could also be issued TDR's ( Transfer of                             900,000 Acres in all to be         and Hostel Facilities for needy students from
                                                                                                                   allocated     for   Social         Low Income Families ( This will however be
 Development Rights ) which they could trade on the market or they could receive cash for the                                                         just once source for OPEX ). Money to be
                                                                                                                   Infrastructure Projects in
 enhanced FSI that accrues on the actual sale of their plots. So , If the Plot has been granted                    Education & Healthcare             given directly by ISIC to the school operators
 an additional FSI of 8 , Cash equivalent of 5.5 FSI will go to the Social Infrastructure                                                             without any involvement of local government.
 Megaprojects and a cash equivalent of 2.5 FSI will be paid in cash or issued as TDR's to the                                                         All such payments and their use to be
                                                                                                                                                      monitored by Comptoller & Auditor General
 PSU after the sale of land through a transperant bidding process to Indian or International                                                          Of India.
 consortia , thereby avoiding any litigation from shareholders.

 It must be understood however that increased FSI requires increased Infrastructure support
 in terms of city amenities and better municipal infrastructure. This needs to be incorporated
 into the city's development plan. The land transfers and sales however can proceed
 immediately and need not wait for the city development plans to be changed.                                              Execute US $ 131.38 Billion Primary &
                                                                                                                          Secondary Education Mega Project between
                                                                                                                          2012 - 2023




                 Bootstrap I                               Bootstrap II                                         Phase I                                                           Phase II                                               Phase III
                 Q1 - Q4 2011                              Q1 - Q4 2012                                        2012-2014                                                          2015-2017                                             2018-2023


    School Megaproject Enabling                         School Megaproject Enabling                     Total Schools                  6000                                Total Schools               9000                     Total Schools        15000
           Infrastructure                                        Infrastructure
                                                        Teachers
   Teachers Training                                    Training                                        Day Schools                    5100                                Day Schools                 7650                     Day Schools          12750
                               100                                             100
   Schools                                              Schools
                                                                                                        Residential                    900                                 Residential                 1350                     Residential          2250
   Master Masons *              30                      Master Masons*               30                 Schools                                                            Schools                                              Schools
   Training Schools                                     Training Schools
   * Master Masons to be trained in the                 * Master Masons to be trained in the
   Vernarcular Architecture Style                       Vernarcular Architecture Style


   Once trained , Master Masons and Teachers could organize themselves into Guilds ( Not Cooperatives ). The Masons Guilds could bid for contracts to build the schools / hospitals.



  Note on SPV Executive / Regulatory Powers :

  The BOO / BOT concession for the Primary & Secondary Schools will be given with all necessary clearences and professional affiliations in a single window. If a promoter group / concession awardee fails
  to meet certain transparant criteria ( specified in a 1 page rule book ), the concession will be terminated and offered to a new developer ... there will be no appeal to any court and the 1 page rulebook will
  be very clear on concession termination issues.

  Same structural vehicle / arrangement can be used to finance higher education.



  Governance : Project & Operations Phase

  There are huge cashflows involved in both the project execution and operations phases of the Indian Primary & Secondary Education Megaproject . The execution phase will involve the raising and
  expenditure of approximately US $ 131.38 Billion or Rs 597,651 crores between 2011 and 2023 and the operations phase will involve project revenues and rent allocations ( which will help approx. 126
  million children to receive quality education free of cost ) of approximately US $ 42.57 Billion each year after 2023.

  The scale of cashflows needs to be monitored in a transparent manner and the Megaproject needs to be open to public audit. It is therefore an explicit requirement of the project that it be executed in a
Governance : Project & Operations Phase

There are huge cashflows involved in both the project execution and operations phases of the Indian Primary & Secondary Education Megaproject . The execution phase will involve the raising and
expenditure of approximately US $ 131.38 Billion or Rs 597,651 crores between 2011 and 2023 and the operations phase will involve project revenues and rent allocations ( which will help approx. 126
million children to receive quality education free of cost ) of approximately US $ 42.57 Billion each year after 2023.

The scale of cashflows needs to be monitored in a transparent manner and the Megaproject needs to be open to public audit. It is therefore an explicit requirement of the project that it be executed in a
corporate setup, outside the concerned ministries , under government of India and to implement a context based communications platform for project MIS. In fact , it is better not to execute this
project , than to do it within a ministry or the existing education systems where information in-efficiencies and leakage of funds will undermine the very basis of the projects and lead to huge
cost and time over-runs.

The project needs therefore to be executed and operated in a corporate setup , under a Special Project Vehicle ( SPV ) set up under an act of Parliament ( The ISIC ) in the same manner as
organizations such as IOC, ONGC, NHAI , IIFC and UTI were set up. The chief secretary’s of all states , The Chairman of the National Knowledge Commission, The Secretary , Ministry of HRD, the
Deputy Chairman of the Planning Commission, The Minister of HRD will be members of the board. The responsibility for audit of the organization will vest with the Auditor General of India.

The Masons guilds are a very important part of this project as they will generate huge employment opportunities in rural india. As envisaged however , the guilds will essentially be self governing and
market forces. will decide their profitability. Government or local political control on these cooperatives will kill these guilds and therefore it is essential to protect their interests only through broad , non-
interfering regulation. The guilds must therefore never be turned into cooperatives which breed corruption and in-efficiency.
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
Stand Alone ( Day School ) Facility With 300 Children X 2 Shifts, Full Time 51                                                                 www.nataraja.org.in
Teachers + 7 Visiting Faculty                                                                             Zero Drop out rate is being assumed
       IMPORTANT NOTE ON OPERATING FINANCIALS OF THE SCHOOLS:                                                                                         Floor Space Required ( Class
                                                                                                          due to superior teaching inputs …           Room + Hostel ) in Sq Ft @
                                                         Fractional Vouchers in Day schools               Project will rely less on pull factors such
                                                         will provide 2/3 subsidy.                                                                    Rs 850 / Sq Ft … This includes
       This project works because the Education SPV provides for the total costs of education      for 18 as Mid Day Meal Schemethe Hub Schools) . Theconstruction & Furniture
                                                                                                           Million Children ( In & More on
       Vouchers also include the cost of the teacher sharing programme which reaches another
                                                         For ease of calculations students         108 Million Children who are attopresent covered byrequired
                                                                                                          Better and Inspiring Teachers keep
                                                                                                          students in school.
       the Sarva Shiksha Abhiyan ( SSA ). A total of 126 Million Children are are added in
                                                         on fractional vouchers therefore covered with the best teaching resources possible.
                                                         the end.
       This spreadsheet Looks exclusively at the financial viability of the schools from the point of view of private developers / Consortia who
       will be investing just Rs 0.88 Crore equity each and raising the balance of their 60 % share as Interest free debt during the construction
       period from the World Bank / Asian Development Bank . Here again Government of India will back this debt with a revolving $ 10 Billion
       sovereign loan guarantee and take on the cost of the debt during the construction period. After the construction is complete, the World Bank /
       Asian Development Bank will be replaced in the financial structure by a commercial bank and the debt will carry a normal market rate of
       interest . The project developer will pay back this loan and any interest that will be due.

       The ISIC raises all the money required through unique and innovative financing. Please read the project concept document for more
       details on financing
Stand Alone Residential Facility With 600 Children ( Residents )+ 200 Children as Day Scholars                                                                 www.nataraja.org.in
, 51 Full Time Teachers + 7 Visiting Faculty                                                Zero Drop out rate is being assumed
             IMPORTANT NOTE ON OPERATING FINANCIALS OF THE SCHOOLS:                         due to superior teaching inputs …                           Floor Space Required ( Class
                                                          System has sufficient inbuilt                 Project will rely less on pull factors such     Room + Hostel ) in Sq Ft @
             This project works because the Education     capacity for de-bottlenecking.
                                                        SPV provides for the total costs   of educationfor Mid Day MealChildren&(More on Hub Schools) . Rs 850 / Sq Ft Furniture
                                                                                                        as 18 Million Scheme             In the         The
                                                                                                                                                        construction &
                                                                                                                                                                       … This includes
             Vouchers also include the cost of the teacher sharing programme which reaches another     108 Million Children who to keep present covered by
                                                                                                        Better and Inspiring Teachers are at
                                                                                                                                                        required
                                                                                                        students in school.
             the Sarva Shiksha Abhiyan ( SSA ). A total of 126 Million Children are therefore covered with the best teaching resources possible.

             This spreadsheet Looks exclusively at the financial viability of the schools from the point of view of private developers / Consortia who
             will be investing just Rs 1.75 Crore equity each and raising the balance of their 60 % share as Interest free debt during the construction
             period from the World Bank / Asian Development Bank . Here again Government of India will back this debt with a revolving $ 10 Billion
             sovereign loan guarantee and take on the cost of the debt during the construction period. After the construction is complete, the World Bank /
             Asian Development Bank will be replaced in the financial structure by a commercial bank and the debt will carry a normal market rate of
             interest . The project developer will pay back this loan and any interest that will be due.

             The ISIC raises all the money required through unique and innovative financing. Please read the project concept document for more
             details on financing
The Nataraja Foundation
                     www.nataraja.org.in


Economics Of The Teacher Sharing Programme :
It is felt that teachers ( many of them women ) will need a place to rest and refresh themselves during their work in the villages. A
guesthouse has therefore been created in the area close to each of the assisted schools. This will allow for further expansion of the
programme. The guesthouses will also allow for overnight stay.

                                                                                       Sample Teacher Guest houses
1. Teacher Guesthouses                                                                 Cost : Rs 850 / Sq Ft

A small teacher guesthouse will be constructed in the environs of each of the 14 assisted village school

Teacher Guesthouse Costing :
                                                                                                         Cost

Cost of 1200 Sq Ft guesthouse @ Rs 850 / Sq Ft                                                           10.2
Land Development Cost @ 15 % of Guesthouse cost                                                          1.53
Guesthouse Furnishing                                                                                       2
Land Cost ( land given by government for free )                                                             0

Total Cost                                                                                             13.73

Total Cost of 30000 X 14 Guesthouses ( 420,000 Guesthouses )                                          57666




2. Vehicle / Fuel Costs For The Teacher Sharing Programme

     Type Of Vehicle         Qty Of        Distance       Mileage Cost of Diesel               Total Running
                             Vehicle       Travelled               ( Rs / Litre )                 Cost / Day
                                           / Day



     Large Buses                       2           50            4                    40             1000.00
     Mini Vans                         2           50            6                    40              666.67
     Jeeps                             4           75           10                    40             1200.00
     Cars                              4           75           12                    40             1000.00

     TOTAL COSTS

     Assumptions
     All assisted schools will be within a 50 Km radius of the hub school
Each Small Vehicle Does 75 Km / Day on Average and Each Bus / Minibus travels 50 Km / Day
Cost of Diesel @ Rs 40 / Litre. Global petroleum markets are volatile and marginal pricing economics constrain upw


Mileage Assumptions
                      Km / Litre
                       Of Diesel
Bus                          4
Mini Bus                     6
Jeep                        10
Car                         12




Notes :

1. Driver & helper costs are included in staff costs
2. Teacher costs are included in the school costs and therefore not priced here.
Architect : RL Kumar   (
                                                                   Bangalore )


during their work in the villages. A
l allow for further expansion of the


Teacher Guest houses
s 850 / Sq Ft

14 assisted village school




                     Lakhs
                     Lakhs
                     Lakhs




              Crores




                  Total Running        Maintenance      Total           Total Operating
              Cost / Year of 250       Cost / Year / Maintenance       Cost of Fleet Per
                           Days              Vehicle    Cost                       Year



                      250000.00             30000         60000              310000.00
                      166666.67             25000         50000              216666.67
                      300000.00             10000         40000              340000.00
                      250000.00             10000         40000              290000.00

                    966666.67                           190000           1156666.67
50 Km / Day
al pricing economics constrain upward price view.
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile
F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile

More Related Content

What's hot

Vivekanand education megaproject_cover_letter_to_the_prime_minister_11_feb_2015
Vivekanand education megaproject_cover_letter_to_the_prime_minister_11_feb_2015Vivekanand education megaproject_cover_letter_to_the_prime_minister_11_feb_2015
Vivekanand education megaproject_cover_letter_to_the_prime_minister_11_feb_2015The Nataraja Foundation
 
Business In Education November 2011
Business In Education   November 2011Business In Education   November 2011
Business In Education November 2011Indalytics Advisors
 
MM Bagali, PhD, HRM Project for MBA Institute
MM Bagali, PhD, HRM Project for MBA InstituteMM Bagali, PhD, HRM Project for MBA Institute
MM Bagali, PhD, HRM Project for MBA Institutedr m m bagali, phd in hr
 
ILM Academy - An Initiative by IIM and Harvard graduates
ILM Academy - An Initiative by IIM and Harvard graduatesILM Academy - An Initiative by IIM and Harvard graduates
ILM Academy - An Initiative by IIM and Harvard graduatesSamina Bano
 
2012 Ba (Hons) Bl & Cm Employer Brochure
2012 Ba (Hons) Bl & Cm Employer Brochure2012 Ba (Hons) Bl & Cm Employer Brochure
2012 Ba (Hons) Bl & Cm Employer BrochureLucyHatt
 
Academic Consultancy Presentation from LocalKonnect
Academic Consultancy Presentation from LocalKonnectAcademic Consultancy Presentation from LocalKonnect
Academic Consultancy Presentation from LocalKonnectBalaji Venkateshwar
 

What's hot (8)

Vivekanand education megaproject_cover_letter_to_the_prime_minister_11_feb_2015
Vivekanand education megaproject_cover_letter_to_the_prime_minister_11_feb_2015Vivekanand education megaproject_cover_letter_to_the_prime_minister_11_feb_2015
Vivekanand education megaproject_cover_letter_to_the_prime_minister_11_feb_2015
 
Eng school plan
Eng school planEng school plan
Eng school plan
 
Tipps plan
Tipps planTipps plan
Tipps plan
 
Business In Education November 2011
Business In Education   November 2011Business In Education   November 2011
Business In Education November 2011
 
MM Bagali, PhD, HRM Project for MBA Institute
MM Bagali, PhD, HRM Project for MBA InstituteMM Bagali, PhD, HRM Project for MBA Institute
MM Bagali, PhD, HRM Project for MBA Institute
 
ILM Academy - An Initiative by IIM and Harvard graduates
ILM Academy - An Initiative by IIM and Harvard graduatesILM Academy - An Initiative by IIM and Harvard graduates
ILM Academy - An Initiative by IIM and Harvard graduates
 
2012 Ba (Hons) Bl & Cm Employer Brochure
2012 Ba (Hons) Bl & Cm Employer Brochure2012 Ba (Hons) Bl & Cm Employer Brochure
2012 Ba (Hons) Bl & Cm Employer Brochure
 
Academic Consultancy Presentation from LocalKonnect
Academic Consultancy Presentation from LocalKonnectAcademic Consultancy Presentation from LocalKonnect
Academic Consultancy Presentation from LocalKonnect
 

Viewers also liked

Barcelona summit declaration slides update. revised with delegate comments fo...
Barcelona summit declaration slides update. revised with delegate comments fo...Barcelona summit declaration slides update. revised with delegate comments fo...
Barcelona summit declaration slides update. revised with delegate comments fo...Eric Schwartzman
 
Social Media Manager's Workshop
Social Media Manager's WorkshopSocial Media Manager's Workshop
Social Media Manager's WorkshopEric Schwartzman
 
Inter-American Investment Corporation Keynote Presentation
Inter-American Investment Corporation Keynote PresentationInter-American Investment Corporation Keynote Presentation
Inter-American Investment Corporation Keynote PresentationEric Schwartzman
 
DeCA Tier One Training for Senior Leadership
DeCA Tier One Training for Senior Leadership DeCA Tier One Training for Senior Leadership
DeCA Tier One Training for Senior Leadership Eric Schwartzman
 
US Dept of State - COP Climate Conference
US Dept of State - COP Climate ConferenceUS Dept of State - COP Climate Conference
US Dept of State - COP Climate ConferenceEric Schwartzman
 
Digital Marketing Training
Digital Marketing TrainingDigital Marketing Training
Digital Marketing TrainingEric Schwartzman
 

Viewers also liked (8)

Barcelona summit declaration slides update. revised with delegate comments fo...
Barcelona summit declaration slides update. revised with delegate comments fo...Barcelona summit declaration slides update. revised with delegate comments fo...
Barcelona summit declaration slides update. revised with delegate comments fo...
 
Social Media Manager's Workshop
Social Media Manager's WorkshopSocial Media Manager's Workshop
Social Media Manager's Workshop
 
Inter-American Investment Corporation Keynote Presentation
Inter-American Investment Corporation Keynote PresentationInter-American Investment Corporation Keynote Presentation
Inter-American Investment Corporation Keynote Presentation
 
DeCA Tier One Training for Senior Leadership
DeCA Tier One Training for Senior Leadership DeCA Tier One Training for Senior Leadership
DeCA Tier One Training for Senior Leadership
 
US Dept of State - COP Climate Conference
US Dept of State - COP Climate ConferenceUS Dept of State - COP Climate Conference
US Dept of State - COP Climate Conference
 
Digital Marketing Training
Digital Marketing TrainingDigital Marketing Training
Digital Marketing Training
 
Letter of Recommendation
Letter of RecommendationLetter of Recommendation
Letter of Recommendation
 
Documenting The Business Outcomes
Documenting The Business OutcomesDocumenting The Business Outcomes
Documenting The Business Outcomes
 

Similar to F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile

04. opex financing plan_vivekananda_education_megaproject
04. opex financing plan_vivekananda_education_megaproject04. opex financing plan_vivekananda_education_megaproject
04. opex financing plan_vivekananda_education_megaprojectAshish Puntambekar
 
01. executive summary vivekananda_skill_development_and_secondary_education_m...
01. executive summary vivekananda_skill_development_and_secondary_education_m...01. executive summary vivekananda_skill_development_and_secondary_education_m...
01. executive summary vivekananda_skill_development_and_secondary_education_m...Ashish Puntambekar
 
Opex Financing Plan_Vivekananda_Education_Megaproject
Opex Financing Plan_Vivekananda_Education_MegaprojectOpex Financing Plan_Vivekananda_Education_Megaproject
Opex Financing Plan_Vivekananda_Education_MegaprojectThe Nataraja Foundation
 
Vivekanand Education Megaproject_Cover_Letter_To_The_Prime_Minister
Vivekanand Education Megaproject_Cover_Letter_To_The_Prime_MinisterVivekanand Education Megaproject_Cover_Letter_To_The_Prime_Minister
Vivekanand Education Megaproject_Cover_Letter_To_The_Prime_MinisterThe Nataraja Foundation
 
Pakistan Education System & Recommendation
Pakistan Education System & RecommendationPakistan Education System & Recommendation
Pakistan Education System & RecommendationS.M.Ali Raza
 
EXPANDING- Benton's edtech integration plan moves into year two
EXPANDING- Benton's edtech integration plan moves into year twoEXPANDING- Benton's edtech integration plan moves into year two
EXPANDING- Benton's edtech integration plan moves into year twoNorth Kansas City Schools
 
Marketing plan
Marketing planMarketing plan
Marketing plansalar shah
 
Re imagining on vocational education
Re imagining on  vocational education Re imagining on  vocational education
Re imagining on vocational education sonaliChannawar
 
An Analysis Of the Union Budget from 2010- 2015 Education Sector
An Analysis Of the Union Budget from 2010- 2015 Education SectorAn Analysis Of the Union Budget from 2010- 2015 Education Sector
An Analysis Of the Union Budget from 2010- 2015 Education SectorSneha J Chouhan
 
In service training of teachers and its futuristic view
In service training of teachers and its futuristic viewIn service training of teachers and its futuristic view
In service training of teachers and its futuristic viewSami Ul Haq
 
Public Private Partnership in Teacher Education: Its Prospect and Strategies
Public Private Partnership in Teacher Education: Its Prospect and StrategiesPublic Private Partnership in Teacher Education: Its Prospect and Strategies
Public Private Partnership in Teacher Education: Its Prospect and Strategiesiosrjce
 
Pilot project proposal for ngo's
Pilot project proposal for ngo'sPilot project proposal for ngo's
Pilot project proposal for ngo'svshanit
 
SIP report enrollment of student in W.B
SIP report enrollment of student in W.BSIP report enrollment of student in W.B
SIP report enrollment of student in W.Bsumit singh
 
4. ព្រឹត្តបត្រស្រាវជ្រាវអប់រំ_ភាគ៤ (ENG_KH).pdf
4. ព្រឹត្តបត្រស្រាវជ្រាវអប់រំ_ភាគ៤ (ENG_KH).pdf4. ព្រឹត្តបត្រស្រាវជ្រាវអប់រំ_ភាគ៤ (ENG_KH).pdf
4. ព្រឹត្តបត្រស្រាវជ្រាវអប់រំ_ភាគ៤ (ENG_KH).pdfnyka495
 
Unit 06 elementary teacher education program in pakistan
Unit 06 elementary teacher education program in pakistanUnit 06 elementary teacher education program in pakistan
Unit 06 elementary teacher education program in pakistanZahid Mehmood
 
Emerging Trends in Teacher Education Under NEP2020
Emerging Trends in Teacher Education Under NEP2020Emerging Trends in Teacher Education Under NEP2020
Emerging Trends in Teacher Education Under NEP2020ijtsrd
 

Similar to F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile (20)

04. opex financing plan_vivekananda_education_megaproject
04. opex financing plan_vivekananda_education_megaproject04. opex financing plan_vivekananda_education_megaproject
04. opex financing plan_vivekananda_education_megaproject
 
01. executive summary vivekananda_skill_development_and_secondary_education_m...
01. executive summary vivekananda_skill_development_and_secondary_education_m...01. executive summary vivekananda_skill_development_and_secondary_education_m...
01. executive summary vivekananda_skill_development_and_secondary_education_m...
 
Sumeet final BCS NMO 2019
Sumeet final BCS NMO 2019Sumeet final BCS NMO 2019
Sumeet final BCS NMO 2019
 
Opex Financing Plan_Vivekananda_Education_Megaproject
Opex Financing Plan_Vivekananda_Education_MegaprojectOpex Financing Plan_Vivekananda_Education_Megaproject
Opex Financing Plan_Vivekananda_Education_Megaproject
 
Vivekanand Education Megaproject_Cover_Letter_To_The_Prime_Minister
Vivekanand Education Megaproject_Cover_Letter_To_The_Prime_MinisterVivekanand Education Megaproject_Cover_Letter_To_The_Prime_Minister
Vivekanand Education Megaproject_Cover_Letter_To_The_Prime_Minister
 
Pakistan Education System & Recommendation
Pakistan Education System & RecommendationPakistan Education System & Recommendation
Pakistan Education System & Recommendation
 
IIFTians
IIFTiansIIFTians
IIFTians
 
EXPANDING- Benton's edtech integration plan moves into year two
EXPANDING- Benton's edtech integration plan moves into year twoEXPANDING- Benton's edtech integration plan moves into year two
EXPANDING- Benton's edtech integration plan moves into year two
 
Marketing plan
Marketing planMarketing plan
Marketing plan
 
Re imagining on vocational education
Re imagining on  vocational education Re imagining on  vocational education
Re imagining on vocational education
 
An Analysis Of the Union Budget from 2010- 2015 Education Sector
An Analysis Of the Union Budget from 2010- 2015 Education SectorAn Analysis Of the Union Budget from 2010- 2015 Education Sector
An Analysis Of the Union Budget from 2010- 2015 Education Sector
 
In service training of teachers and its futuristic view
In service training of teachers and its futuristic viewIn service training of teachers and its futuristic view
In service training of teachers and its futuristic view
 
Public Private Partnership in Teacher Education: Its Prospect and Strategies
Public Private Partnership in Teacher Education: Its Prospect and StrategiesPublic Private Partnership in Teacher Education: Its Prospect and Strategies
Public Private Partnership in Teacher Education: Its Prospect and Strategies
 
Pilot project proposal for ngo's
Pilot project proposal for ngo'sPilot project proposal for ngo's
Pilot project proposal for ngo's
 
SIP report enrollment of student in W.B
SIP report enrollment of student in W.BSIP report enrollment of student in W.B
SIP report enrollment of student in W.B
 
4. ព្រឹត្តបត្រស្រាវជ្រាវអប់រំ_ភាគ៤ (ENG_KH).pdf
4. ព្រឹត្តបត្រស្រាវជ្រាវអប់រំ_ភាគ៤ (ENG_KH).pdf4. ព្រឹត្តបត្រស្រាវជ្រាវអប់រំ_ភាគ៤ (ENG_KH).pdf
4. ព្រឹត្តបត្រស្រាវជ្រាវអប់រំ_ភាគ៤ (ENG_KH).pdf
 
Unit 06 elementary teacher education program in pakistan
Unit 06 elementary teacher education program in pakistanUnit 06 elementary teacher education program in pakistan
Unit 06 elementary teacher education program in pakistan
 
Emerging Trends in Teacher Education Under NEP2020
Emerging Trends in Teacher Education Under NEP2020Emerging Trends in Teacher Education Under NEP2020
Emerging Trends in Teacher Education Under NEP2020
 
Appreciating the big picture of EESDP
Appreciating  the big picture of EESDPAppreciating  the big picture of EESDP
Appreciating the big picture of EESDP
 
PPT ON NEP 2020.pptx
PPT ON NEP 2020.pptxPPT ON NEP 2020.pptx
PPT ON NEP 2020.pptx
 

More from Ashish Puntambekar

Indian_East_Coast_Energy_Corridor_Part_1_of_6.pdf
Indian_East_Coast_Energy_Corridor_Part_1_of_6.pdfIndian_East_Coast_Energy_Corridor_Part_1_of_6.pdf
Indian_East_Coast_Energy_Corridor_Part_1_of_6.pdfAshish Puntambekar
 
Indian East Coast Energy Corridor Part 1 of 6.pdf
Indian East Coast Energy Corridor Part 1 of 6.pdfIndian East Coast Energy Corridor Part 1 of 6.pdf
Indian East Coast Energy Corridor Part 1 of 6.pdfAshish Puntambekar
 
Disruptive_Ideas_in_Banking_And_Fintech_Building_The_Worlds_Largest_Banks_in_...
Disruptive_Ideas_in_Banking_And_Fintech_Building_The_Worlds_Largest_Banks_in_...Disruptive_Ideas_in_Banking_And_Fintech_Building_The_Worlds_Largest_Banks_in_...
Disruptive_Ideas_in_Banking_And_Fintech_Building_The_Worlds_Largest_Banks_in_...Ashish Puntambekar
 
Financial_Innovation_Offshore_Wind_Smart_City_Hybrid_Project.pdf
Financial_Innovation_Offshore_Wind_Smart_City_Hybrid_Project.pdfFinancial_Innovation_Offshore_Wind_Smart_City_Hybrid_Project.pdf
Financial_Innovation_Offshore_Wind_Smart_City_Hybrid_Project.pdfAshish Puntambekar
 
Indian_East_Coast_Energy_Corridor_Part_1_of_6.pdf
Indian_East_Coast_Energy_Corridor_Part_1_of_6.pdfIndian_East_Coast_Energy_Corridor_Part_1_of_6.pdf
Indian_East_Coast_Energy_Corridor_Part_1_of_6.pdfAshish Puntambekar
 
Budget proposal 2019_New_Urban_Land_Policy_and_Land_Appreciation_Tax_with_thr...
Budget proposal 2019_New_Urban_Land_Policy_and_Land_Appreciation_Tax_with_thr...Budget proposal 2019_New_Urban_Land_Policy_and_Land_Appreciation_Tax_with_thr...
Budget proposal 2019_New_Urban_Land_Policy_and_Land_Appreciation_Tax_with_thr...Ashish Puntambekar
 
03. capex financing plan_vivekananda_education_megaproject
03. capex financing plan_vivekananda_education_megaproject03. capex financing plan_vivekananda_education_megaproject
03. capex financing plan_vivekananda_education_megaprojectAshish Puntambekar
 
02. detailed presentation vivekananda_skill_development_and_secondary_educati...
02. detailed presentation vivekananda_skill_development_and_secondary_educati...02. detailed presentation vivekananda_skill_development_and_secondary_educati...
02. detailed presentation vivekananda_skill_development_and_secondary_educati...Ashish Puntambekar
 
07. how much is_a_good_teacher_worth_eric_hanushek_stanford_university copy
07. how much is_a_good_teacher_worth_eric_hanushek_stanford_university copy07. how much is_a_good_teacher_worth_eric_hanushek_stanford_university copy
07. how much is_a_good_teacher_worth_eric_hanushek_stanford_university copyAshish Puntambekar
 
Dez support letter_from_ministry_of_defence
Dez support letter_from_ministry_of_defenceDez support letter_from_ministry_of_defence
Dez support letter_from_ministry_of_defenceAshish Puntambekar
 
TEDx_talk_Tripling_the_size_of_the_Indian_Economy_by_2030
TEDx_talk_Tripling_the_size_of_the_Indian_Economy_by_2030TEDx_talk_Tripling_the_size_of_the_Indian_Economy_by_2030
TEDx_talk_Tripling_the_size_of_the_Indian_Economy_by_2030Ashish Puntambekar
 
TEDx talk_Tripling_The_Size_of_the_Indian_Economy_by_2030_Ashish_Puntambekar
TEDx talk_Tripling_The_Size_of_the_Indian_Economy_by_2030_Ashish_PuntambekarTEDx talk_Tripling_The_Size_of_the_Indian_Economy_by_2030_Ashish_Puntambekar
TEDx talk_Tripling_The_Size_of_the_Indian_Economy_by_2030_Ashish_PuntambekarAshish Puntambekar
 
Construct India Mission_Concept_Presentation
Construct India Mission_Concept_PresentationConstruct India Mission_Concept_Presentation
Construct India Mission_Concept_PresentationAshish Puntambekar
 
India's Defence Manufacturing Corridors as Industrial Clusters
India's Defence Manufacturing Corridors as Industrial ClustersIndia's Defence Manufacturing Corridors as Industrial Clusters
India's Defence Manufacturing Corridors as Industrial ClustersAshish Puntambekar
 
Defence economic zones_transforming_india's_military_industrial_complex
Defence economic zones_transforming_india's_military_industrial_complexDefence economic zones_transforming_india's_military_industrial_complex
Defence economic zones_transforming_india's_military_industrial_complexAshish Puntambekar
 
Presentation defence economic_zones_rev_02_final_draft
Presentation defence economic_zones_rev_02_final_draftPresentation defence economic_zones_rev_02_final_draft
Presentation defence economic_zones_rev_02_final_draftAshish Puntambekar
 
Defence Economic Zone Project Review Meeting
Defence Economic Zone Project Review MeetingDefence Economic Zone Project Review Meeting
Defence Economic Zone Project Review MeetingAshish Puntambekar
 
Ahobilam Viakunta Megaproject_and_Mega_University_Plan
Ahobilam Viakunta Megaproject_and_Mega_University_PlanAhobilam Viakunta Megaproject_and_Mega_University_Plan
Ahobilam Viakunta Megaproject_and_Mega_University_PlanAshish Puntambekar
 
Creating World Class R & D Organisations In India
Creating World Class R & D Organisations In IndiaCreating World Class R & D Organisations In India
Creating World Class R & D Organisations In IndiaAshish Puntambekar
 
Responses to the mumbai megaproject cm maharashtra_and_mumbai_first
Responses to the mumbai megaproject cm maharashtra_and_mumbai_firstResponses to the mumbai megaproject cm maharashtra_and_mumbai_first
Responses to the mumbai megaproject cm maharashtra_and_mumbai_firstAshish Puntambekar
 

More from Ashish Puntambekar (20)

Indian_East_Coast_Energy_Corridor_Part_1_of_6.pdf
Indian_East_Coast_Energy_Corridor_Part_1_of_6.pdfIndian_East_Coast_Energy_Corridor_Part_1_of_6.pdf
Indian_East_Coast_Energy_Corridor_Part_1_of_6.pdf
 
Indian East Coast Energy Corridor Part 1 of 6.pdf
Indian East Coast Energy Corridor Part 1 of 6.pdfIndian East Coast Energy Corridor Part 1 of 6.pdf
Indian East Coast Energy Corridor Part 1 of 6.pdf
 
Disruptive_Ideas_in_Banking_And_Fintech_Building_The_Worlds_Largest_Banks_in_...
Disruptive_Ideas_in_Banking_And_Fintech_Building_The_Worlds_Largest_Banks_in_...Disruptive_Ideas_in_Banking_And_Fintech_Building_The_Worlds_Largest_Banks_in_...
Disruptive_Ideas_in_Banking_And_Fintech_Building_The_Worlds_Largest_Banks_in_...
 
Financial_Innovation_Offshore_Wind_Smart_City_Hybrid_Project.pdf
Financial_Innovation_Offshore_Wind_Smart_City_Hybrid_Project.pdfFinancial_Innovation_Offshore_Wind_Smart_City_Hybrid_Project.pdf
Financial_Innovation_Offshore_Wind_Smart_City_Hybrid_Project.pdf
 
Indian_East_Coast_Energy_Corridor_Part_1_of_6.pdf
Indian_East_Coast_Energy_Corridor_Part_1_of_6.pdfIndian_East_Coast_Energy_Corridor_Part_1_of_6.pdf
Indian_East_Coast_Energy_Corridor_Part_1_of_6.pdf
 
Budget proposal 2019_New_Urban_Land_Policy_and_Land_Appreciation_Tax_with_thr...
Budget proposal 2019_New_Urban_Land_Policy_and_Land_Appreciation_Tax_with_thr...Budget proposal 2019_New_Urban_Land_Policy_and_Land_Appreciation_Tax_with_thr...
Budget proposal 2019_New_Urban_Land_Policy_and_Land_Appreciation_Tax_with_thr...
 
03. capex financing plan_vivekananda_education_megaproject
03. capex financing plan_vivekananda_education_megaproject03. capex financing plan_vivekananda_education_megaproject
03. capex financing plan_vivekananda_education_megaproject
 
02. detailed presentation vivekananda_skill_development_and_secondary_educati...
02. detailed presentation vivekananda_skill_development_and_secondary_educati...02. detailed presentation vivekananda_skill_development_and_secondary_educati...
02. detailed presentation vivekananda_skill_development_and_secondary_educati...
 
07. how much is_a_good_teacher_worth_eric_hanushek_stanford_university copy
07. how much is_a_good_teacher_worth_eric_hanushek_stanford_university copy07. how much is_a_good_teacher_worth_eric_hanushek_stanford_university copy
07. how much is_a_good_teacher_worth_eric_hanushek_stanford_university copy
 
Dez support letter_from_ministry_of_defence
Dez support letter_from_ministry_of_defenceDez support letter_from_ministry_of_defence
Dez support letter_from_ministry_of_defence
 
TEDx_talk_Tripling_the_size_of_the_Indian_Economy_by_2030
TEDx_talk_Tripling_the_size_of_the_Indian_Economy_by_2030TEDx_talk_Tripling_the_size_of_the_Indian_Economy_by_2030
TEDx_talk_Tripling_the_size_of_the_Indian_Economy_by_2030
 
TEDx talk_Tripling_The_Size_of_the_Indian_Economy_by_2030_Ashish_Puntambekar
TEDx talk_Tripling_The_Size_of_the_Indian_Economy_by_2030_Ashish_PuntambekarTEDx talk_Tripling_The_Size_of_the_Indian_Economy_by_2030_Ashish_Puntambekar
TEDx talk_Tripling_The_Size_of_the_Indian_Economy_by_2030_Ashish_Puntambekar
 
Construct India Mission_Concept_Presentation
Construct India Mission_Concept_PresentationConstruct India Mission_Concept_Presentation
Construct India Mission_Concept_Presentation
 
India's Defence Manufacturing Corridors as Industrial Clusters
India's Defence Manufacturing Corridors as Industrial ClustersIndia's Defence Manufacturing Corridors as Industrial Clusters
India's Defence Manufacturing Corridors as Industrial Clusters
 
Defence economic zones_transforming_india's_military_industrial_complex
Defence economic zones_transforming_india's_military_industrial_complexDefence economic zones_transforming_india's_military_industrial_complex
Defence economic zones_transforming_india's_military_industrial_complex
 
Presentation defence economic_zones_rev_02_final_draft
Presentation defence economic_zones_rev_02_final_draftPresentation defence economic_zones_rev_02_final_draft
Presentation defence economic_zones_rev_02_final_draft
 
Defence Economic Zone Project Review Meeting
Defence Economic Zone Project Review MeetingDefence Economic Zone Project Review Meeting
Defence Economic Zone Project Review Meeting
 
Ahobilam Viakunta Megaproject_and_Mega_University_Plan
Ahobilam Viakunta Megaproject_and_Mega_University_PlanAhobilam Viakunta Megaproject_and_Mega_University_Plan
Ahobilam Viakunta Megaproject_and_Mega_University_Plan
 
Creating World Class R & D Organisations In India
Creating World Class R & D Organisations In IndiaCreating World Class R & D Organisations In India
Creating World Class R & D Organisations In India
 
Responses to the mumbai megaproject cm maharashtra_and_mumbai_first
Responses to the mumbai megaproject cm maharashtra_and_mumbai_firstResponses to the mumbai megaproject cm maharashtra_and_mumbai_first
Responses to the mumbai megaproject cm maharashtra_and_mumbai_first
 

Recently uploaded

The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxheathfieldcps1
 
How to Solve Singleton Error in the Odoo 17
How to Solve Singleton Error in the  Odoo 17How to Solve Singleton Error in the  Odoo 17
How to Solve Singleton Error in the Odoo 17Celine George
 
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdfMaximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdfTechSoup
 
Ultra structure and life cycle of Plasmodium.pptx
Ultra structure and life cycle of Plasmodium.pptxUltra structure and life cycle of Plasmodium.pptx
Ultra structure and life cycle of Plasmodium.pptxDr. Asif Anas
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptxmary850239
 
Patient Counselling. Definition of patient counseling; steps involved in pati...
Patient Counselling. Definition of patient counseling; steps involved in pati...Patient Counselling. Definition of patient counseling; steps involved in pati...
Patient Counselling. Definition of patient counseling; steps involved in pati...raviapr7
 
M-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxM-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxDr. Santhosh Kumar. N
 
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptxPISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptxEduSkills OECD
 
How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17Celine George
 
Benefits & Challenges of Inclusive Education
Benefits & Challenges of Inclusive EducationBenefits & Challenges of Inclusive Education
Benefits & Challenges of Inclusive EducationMJDuyan
 
How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17Celine George
 
The Singapore Teaching Practice document
The Singapore Teaching Practice documentThe Singapore Teaching Practice document
The Singapore Teaching Practice documentXsasf Sfdfasd
 
Quality Assurance_GOOD LABORATORY PRACTICE
Quality Assurance_GOOD LABORATORY PRACTICEQuality Assurance_GOOD LABORATORY PRACTICE
Quality Assurance_GOOD LABORATORY PRACTICESayali Powar
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17Celine George
 
What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?TechSoup
 
In - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxIn - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxAditiChauhan701637
 
Prescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxPrescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxraviapr7
 
Practical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxPractical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxKatherine Villaluna
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxSaurabhParmar42
 

Recently uploaded (20)

The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptx
 
How to Solve Singleton Error in the Odoo 17
How to Solve Singleton Error in the  Odoo 17How to Solve Singleton Error in the  Odoo 17
How to Solve Singleton Error in the Odoo 17
 
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdfMaximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
 
Ultra structure and life cycle of Plasmodium.pptx
Ultra structure and life cycle of Plasmodium.pptxUltra structure and life cycle of Plasmodium.pptx
Ultra structure and life cycle of Plasmodium.pptx
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptx
 
Patient Counselling. Definition of patient counseling; steps involved in pati...
Patient Counselling. Definition of patient counseling; steps involved in pati...Patient Counselling. Definition of patient counseling; steps involved in pati...
Patient Counselling. Definition of patient counseling; steps involved in pati...
 
M-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxM-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptx
 
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptxPISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
 
How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17
 
Benefits & Challenges of Inclusive Education
Benefits & Challenges of Inclusive EducationBenefits & Challenges of Inclusive Education
Benefits & Challenges of Inclusive Education
 
How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17
 
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdfPersonal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
 
The Singapore Teaching Practice document
The Singapore Teaching Practice documentThe Singapore Teaching Practice document
The Singapore Teaching Practice document
 
Quality Assurance_GOOD LABORATORY PRACTICE
Quality Assurance_GOOD LABORATORY PRACTICEQuality Assurance_GOOD LABORATORY PRACTICE
Quality Assurance_GOOD LABORATORY PRACTICE
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17
 
What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?
 
In - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxIn - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptx
 
Prescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxPrescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptx
 
Practical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxPractical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptx
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptx
 

F:\for website deployment_1st_may_2010\nataraja\the_indian_primary_and_secondary_education_megaproject_excel_motherfile

  • 1. The Nataraja Foundation www.nataraja.org.in The Indian Primary & Secondary Education Megaproject 27 th March ' 2010 This Excel workbook deals mainly with the financial structures, cost estimates and detailed financials of the Education Megaproject. Project Concepts and Objectives The actual project, the thinking behind it, it's design criteria etc have been covered in detail in the project concept document which is available The Indian Primary & Secondary Education Megaproject for free download from the Nataraja Foundation's website www.nataraja.org.in Over the last 30 years India has spent very little money on building new schools . The focus has instead been on getting quick results through projects that involved the least possible expenditure. So few new schools were built even though India's population grew from from approx. 846 million in 1991 to almost 1.15 Billion people in 2009. In the schools that were built, the quality of infrastructure is very poor. Planning commission data clearly shows that 44 % of schools at the primary level do not have toilets for instance and 15 % do not have drinking water . Planning Commission data also reveals that nearly 45 % of Creating a lifestyle around the teaching the SC / ST children drop out of school by class V and by class XIII in excess of 60 % drop out of school. Various studies profession conducted by government of India as well as foreign agencies are showing that the percentage ( % ) of " Out Of School Children " is falling but no one is talking about the third rate quality of the schools that the children are being enrolled in and Low cost yet very elegant housing for the abysymal working conditions of the teachers who teach there. teachers under the programme. As a result of all this, in 6 - 8 years time , over 100 Million children will exit the school going age group without any This particular house was built at a cost of employable skills. This is going to create huge social problems in the country. Rs 750 / Sq Ft in 2007 in the Vernacular Architectural Style. Obviously something has gone terribly wrong with our entire approach to education and we need a robust strategy to solve the problems in our education system. Location : Bangalore Architect : RL Kumar Therefore ... www.vernarch.com Central to the thinking behind this project is the belief that the main reason for the steep decline in the quality of human resources in India has been the neglect of the teaching profession and teachers over the last several decades. In India today a crane operator with 5 years of experience makes more money than an MA in Economics or a MSC in Maths or a teacher with a proper BEd degree and with 10 years of teaching experience at the primary school level. This has warped the economic choices that a fresh graduate makes and has resulted in the least qualified individuals handling the most important of all the jobs in this country (The teaching of our children and tomorrows citizens ). This project takes note of the fact that India reached the height of its glory when the teacher was at the head of our society and therefore seeks to bring back this long lost Indian tradition through an innovative mechanism on a truly massive scale. The project is focused on providing a sound basic education as it is more important to have a sound education at the primary and secondary levels for a majority of our people than to spend billions of dollars on higher education and have most of those people going abroad. The whole project therefore is designed around the primary & secondary school teacher ( Project is not centered on the student ) with a view to creating a simple yet elegant lifestyle around the teaching profession so as to attract the best minds towards a career in teaching and thereby correcting a macro imbalance in our society. While doing this , the project also reaches more under privileged children than any other past or currently planned programme of the Govt. Of India. This Excel workbook concentrates on the financials of the project. For a detailed understanding of the various issues, readers are requested to go through the Project concept document which describes the project is proper detail. Project Scale : The project seeks to build a total of 30,000 New schools (with 600 students per school ) under the Public Private Partnership ( PPP ) format during the period 2012 - 2023. Each school under the programme will share teaching resources ( Teachers , Teaching aids etc ) with 14 other village schools in it's surrounding area so that a total of 420,000 additional schools are covered under the programme . The main problem then is money and since the government does not have adequate conventional resources , Innovative financing mechanisms needed to be found to finance this large education project. The project has therefore focused on bringing in innovative ideas on the finance side and we have been able to find innovative ways to raise approximately US $ 131.38 Billion as one time Capital expenditure to build the schools and US $ 42.57 Billion as yearly operational expenditure to run the 30,000 new school system as well as it's huge teacher sharing programme that will reach an additional 108 Million children in 420,000 assisted schools. As a result , once fully commissioned in 2023, a total of upto 126 Million children will receive high quality education totally free of cost .
  • 2. bringing in innovative ideas on the finance side and we have been able to find innovative ways to raise approximately US $ 131.38 Billion as one time Capital expenditure to build the schools and US $ 42.57 Billion as yearly operational expenditure to run the 30,000 new school system as well as it's huge teacher sharing programme that will reach an additional 108 Million children in 420,000 assisted schools. As a result , once fully commissioned in 2023, a total of upto 126 Million children will receive high quality education totally free of cost . Phase Number of Hub Schools Number Of Assisted Schools Commissioning Schedule ( Teacher Sharing Programme ) Bootstrap I - - Q1- Q4 2011 250 New Teacher Training Institutes to train 300 teachers Phase II each per year + 60 New Centers of Bootstrap II - - Q1- Q4 2012 Repeat Phase I Vernacular Archiecture to train 300 Master Masons Each every year Phase I 6000 Hub Schools 84,000 2012 – 2014 Phase II 9000 Hub Schools 220,000 2015 – 2017 Phase III 15000 Hub Schools 420,000 2018 – 2023 Phase IV Possible repeat of total project ( another 30,000 schools ) 2023 – 2029 to cover 4,20,000 additional schools Project Schedule To be Extremely _____________________________________________________________________________________ Aggressive 30,000 New Schools to be commissioned by 2023 _____________________________________________________________________________________ Notes : 1. Each Of Bootstrapping stages I & II will consist of 250 Teacher Training Institutes to train 300 teachers each per year + 60 Centers of Vernacular Archiecture to train 300 Master Masons each year. Bootstrap II will be a repeat of Bootstrap I 2. It is not possible to execute Phase I of this project faster as India currently does not have enough trained teachers who possess the necessary capability / sensitivity to train young minds. This problem will be overcome by 2016 after which project execution velocity will pick up. 3. Phase IV could essentially be a repeat order which will repeat phases I, II and III in half the time. It will be possible to dramatically crash commissioning schedules due to retained learning within the project enterprise. 4. Each day school will operate in two shifts to maximize coverage while keeping costs low. Economic & Environmental Impacts of the Project : The following are the main economic and environmental features of the project which seeks to use Traditional yet very elegant Indian Architecture ( where building life is over 100 years ) without any significant maintenance : 1. This will be the worlds largest , multi-location environmental project as it will use 80 % traditional earth based material and very little cement and steel in the construction of the 30,000 schools. The C02 / Green house gas addition by this project will therefore be virtually zero. It will thus allow huge development without adverse environmental impacts. 2. Project will in addition lead to the planting of around 150 Million trees all over India between 2012 and 2023. 3. While the project will lead to a direct expenditure of US $ 131.38 Billion Billion over the period ( 2012 - 2023 ) on the creation of the low cost , yet extremely elegant school campuses, It will provide huge additional employment opportunities to millions of Indians . The total money multiplier effect on the economy will be in the range of 3 ( conservative ) to yield a total GDP Net delta addition of US $ 300 Billion from the construction of this project alone. The high quality Human Resourses that will be created by building schools designed around the teaching profession will be additional. Prepared By Ashish Puntambekar Project Designer , The Nataraja Foundation (00-91-9867612368) ashish.puntambekar@gmail.com Analyst Note : This model is provided for the information of Educationists, Indian Government Officials , Corporates , Financial Institutions and NGO's and must be seen in conjunction with the project / business spreadsheets prepared for both the stand alone day schools and residential schools as well as the optimised chain that comprimises the megaproject. The Project has been designed based on Information published by the Indian Planning Comission ( XIth Plan
  • 3. Analyst Note : This model is provided for the information of Educationists, Indian Government Officials , Corporates , Financial Institutions and NGO's and must be seen in conjunction with the project / business spreadsheets prepared for both the stand alone day schools and residential schools as well as the optimised chain that comprimises the megaproject. The Project has been designed based on Information published by the Indian Planning Comission ( XIth Plan documents ) as well as other published material on the National Knowledge Commission / Ministry of HRD websites. Published papers by experts on the Indian Education System have also been studied and means to overcome the shortcomings pointed out by the experts have been incorporated in the project design. While these agencies have not been a party to the conception of this project plan, the author would like to thank his sources for making this plan possible through their data.
  • 4. Project Design Basis / Education Philosophy The Nataraja Foundation www.nataraja.org.in " Let the watchword be acceptance and not exclusion " Sufi Saint Kabir Guru Nanak Dev A project of this size and scale will be a dead and soul-less agglomeration of buildings and computer networks without a sound philosophy which is timeless and yet extremely advanced and which seeks, as it were , to bind people of diverse faiths and lead them towards the realization of their potential as human beings . The following words of Vivekananda will therefore serve as a Pole Star for future Indian thinkers on education “ Let the watchword be acceptance and not exclusion. Not only toleration , for so called toleration is blasphemy. Toleration Mother Teresa means that I think you are wrong and I am just allowing you to live. Is it not blasphemy to think that you and I are allowing others to live ? I accept all Rabindranath Tagore & Gandhiji religions that were in the past and worship them all. I worship God with everyone of them, in whatever form they worship him”. Vivekanand Continues … “ I shall go to the mosque of the Mohammedan ; I shall enter the Christian’s church and kneel before the crucifix. I shall enter the Buddhist temple where I shall take refuge in Buddha and in his law. I shall go into the forest and sit down in meditation with the Hindu, who is trying to see the light which enlightens the Dr. APJ Abdul Kalam in Class heart of everyone. Not only shall I do all these things but I shall keep my heart open for all that may come in the future . Is Gods book finished ? Or is it still a continuous revelation going on. It is a marvelous book – these spiritual revelations of the world . The Bible , The Vedas , The Koran and all other sacred books are but so many pages and an infinite number of pages remain to be unfolded ”. Please Click Here To Access The Full Copy of the Project Design Basis / The Importance Project PhilosophyIn The Indian Tradition Of The Teacher Document Gurur Brahma, Gurur Vishnu, Gurur Devo Mahesh Varah. Guru Shakshat Para Brahma, Tasmai Shri Guruve Namah. The teacher is Lord Brahma as he generates knowledge within us. He is like Lord Vishnu as he sustains us and guides us on the right path. He is like Lord Mahesha (Shiva) as he destroys ignorance and thereby enlightens us. My Salutation to such a Guru, who is verily the Supreme God. Note : The Project Design Basis / Education Philosophy can also be downloaded from the following website : www.nataraja.org.in
  • 5. EDUCATION MEGAPROJECT - OVERALL CAPEX / OPEX SNAPSHOT OF PPP SCHEME Cash Requirements Summary Bootstrap 1 Bootstrap 2 US $ / Rs Exchange Rate ( 18th march ' 2010 ) 45.49 Phase I Phase II Phase III Item 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Teachers Training Institutes ( Lot @ Rs 8 Crores Capex & 250 250 Rs 4 Crores Opex for each per year ) Pilot Projects ( Schools in 28 States + 7 Union Territories) … Assumed that 100 35 35 Assumed that In Actual Project 85 % day schools and 15 % Residential Schools % of Pilot Cost Construction 60 % Cost is borne borne in the same in the 1st year and 40 % in the year second year Masons Training Institutes ( Lot & Rs 5 Crore Capex and Rs 60 60 The Nataraja Foundation 2 Crore Opex for each / year ) www.nataraja.org.in Day Schools Nos Of 850 2125 2125 2550 2550 2550 3187 3187 3187 3187 Commissioning Sequence ( For Initiating Opex ) Institutions 850 2125 2125 2550 2550 2550 3187 3187 3187 3189 Cumulative commissioned 850 2975 5100 7650 10200 12750 15937 19124 22311 25500 Residential Schools 150 375 375 450 450 450 563 563 563 563 Commissioning Sequence ( For Initiating Opex ) 150 375 375 450 450 450 563 563 563 561 Cumulative commissioned 150 525 900 1350 1800 2250 2813 3376 3939 4500 Total Schools Construction Started Each Year 1000 2500 2500 3000 3000 3000 3750 3750 3750 3750 Commissioning Sequence ( For Initiating Opex ) 1000 2500 2500 3000 3000 3000 3750 3750 3750 3750 Cumulative commissioned 1000 3500 6000 9000 12000 15000 18750 22500 26250 30000 Costs Of Teacher Sharing Programme Costs Of Teachers Guest houses ( A total of 4,20,000 14000 35000 35000 42000 42000 42000 52500 52500 52500 52500 Guesthouses will be built under the teacher sharing programme ) Fuel Costs Of teacher sharing programme : Rs 11.56 115.6 404.6 693.6 1040.4 1387.2 1734 2167.5 2601 3034.5 3468 3468 Lakhs / School / Year to cover 14 assisted schools 0.12 Opex To Be added IT System for Existing Schools … ( % Complete ) 20% 40% 40% Capex & Opex to be be added depending on system Total Cost Of System with alerts @ Rs 500 Crores : 500 100 200 200 needs and the extent to which the teacher sharing programme is implemented. Taken as US $ 5 Billion IT System for Megaproject Schools … ( % Complete ) over 10 years ( IT Infra ) ( Launching of 12 Satellites + Using 4,00,000 Km of Existing 0 0 0 758 1895 1895 2275 2275 2275 2843 2843 2843 2843 0 Fibre Optic Across 30,000 Hub School and 420,000 Assisted Costs of Schools Via VSATS ) Essential Items in Crores % Completion 30% 70% 100% Forming and Staffing Of the ISIC with Average Salary @ Rs 450 135 315 450 450 450 450 450 450 450 450 450 450 450 450 20 Lakh / Year = Rs 450 Crores ( Fully Staffed as below ) ( 50 Senior Educationists , 300 Finance Professionals, 1200 Project Engineers, 300 IT Professionals, 100 Lawyers, 300 Architects ) Opex Cost of Teacher Training Institutes 1000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 Opex Costs of Masons Training Institutes 120 240 240 240 240 240 240 240 240 240 240 240 240 240 Development Of Vernacular Languages + Urdu+ Hindi + Sanskrit 933 2333 2333 2800 2800 2800 3500 3500 3500 3500 Capital Expenditure Rs.( Thousands Of Crores ) 3.00 13.319 32.371 45.273 54.405 57.813 59.153 66.824 71.938 73.949 73.949 35.610 10.051 ( US $ Billion ) 0.66 2.93 7.12 9.95 11.96 12.71 13.00 14.69 15.81 16.26 16.26 7.83 2.21 Total Capital Expenditure ( Rs Crores ) 597651 Total Capital Expenditure ( US $ Billion ) 131.38 Operational Expenditure ( Rs. Crores ) 1476.84 2998.68 3133.68 9565.31 25551.05 41396.80 60458.36 79473.25 98488.14 122327.60 146097.05 169866.51 193632.60 193632.60 ( US $ Billion ) 0.32 0.66 0.69 2.10 5.62 9.10 13.29 17.47 21.65 26.89 32.12 37.34 42.57 42.57 Sanskrit is possibly the worlds oldest language and it is dying in India. The Education Megaproject therefore allocates Rs 8000 Crores over 10 years to the promotion of Sanskrit in schools and for the digitizing of Sanskrit content as Sanskrit serves as the basis for several Indian and even international languages. This will reverse the huge neglect it has suffered neglect over the last 100 years . All other Indian Languages ( Tamil, Bengali, Marathi, Telugu, Gujarati, Kannada etc. ) including most importantly Urdu and Hindi together will receive an additional Rs 20,000 Crores over 10 years under the Megaproject for the development of digital content and opening of Institutions for scholars. Total Rs 28,000 Crores. Encouragement of local languages will allow the poorest citizen to participate fully in the economy. We want every farmer and labourer to have an equal opportunity and language should not be allowed to be a barrier due to lack of Funds. The Education Megaproject has a special large budget for Vernacular Language propogation.
  • 6. 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 3468 3468 3468 3468 3468 3468 3468 3468 3468 3468 3468 3468 3468 3468 3468 3468 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 240 240 240 240 240 240 240 240 240 240 240 240 240 240 240 240 193632.60 193632.60 193632.60 193632.60 193632.60 193632.60 193632.60 193632.60 193632.60 193632.60 193632.60 193632.60 193632.60 193632.60 193632.60 193632.60 42.57 42.57 42.57 42.57 42.57 42.57 42.57 42.57 42.57 42.57 42.57 42.57 42.57 42.57 42.57 42.57
  • 7. TERM SHEET Assumptions On Financing / Sources Of Funds : The Nataraja Foundation US $ / Rs Exchange Rate ( 18th march 2010 ) 45.49 www.nataraja.org.in Sl. No. Source Description Estimate of Total Notional Amount % Of Source Amount Available Cash Available Each Possible Corpus Potentially Available / Proposed For Each Year Year ( ( US $ Billion ) Year ( Education ( US $ Million ) Thousands of Crores ) US $ Billion ) Megaproject YEARLY FUND FLOWS / Annuities 1 Net Present Value Of Inceremental GDP 500 20 10% 2000 9098 Increase after GST implementation starting 1st April ' 2010 ( Delta Over Current ) . The Total Corpus in the next column is assumed and calculated over a 25 year period with a discount rate at 3 %. This cash flow will triple by 2025 when the size of the Indian economy is expected to be US $ 4.5 Trillion. 2 30 % of a proposed new tax on the services 510 5.1 30% 1530 6959.97 component in future Infrastructure projects. The base case estimate of the delta / net additional Infrastructure investment in India over the next 10 years is taken at US $ 1.7 Trillion ( Goldman sachs View ). This cash stream will triple by 2025 when the size of the Indian economy is expected to be US $ 4.5 Trillion. 3 Graduate Tax Collected From Employers In 10.11 2.53 80% 2022.42 9200 India. It is assumed here that there are 46 Million Graduates in India ( 2004 Estimate ). This number today is larger. This cash stream will double by 2025 when the size of the Indian economy is expected to be US $ 4.5 Trillion. Assumptions On Financing / Sources Of Funds :
  • 8. US $ / Rs Exchange Rate ( 18th march 2010 ) 45.49 Sl. No. Source Description Estimate of Total Notional Amount % Of Source Amount Available Amount Available Each Possible Corpus Potentially Available / Proposed For Each Year Year ( ( US $ Billion ) Year ( Education ( US $ Million ) Thousands of Crores ) US $ Billion ) Megaproject 4 Quantized Tobin Tax on Forex Transactions. It 1.1 1.1 100% 1095 4981.16 has been assumed that the volume of daily average forex transactions in India and by companies doing business in India is of the order of US $ 15 Billion. A Tobin Tax ( First proposed by Nobel laureate James Tobin ) to be levied at the rate of 0.02 % on the total volume of the transaction which will be quantized as per the size of the transaction with higher rates applying to larger transactions to prevent speculation on the Indian Rupee as it moves towards Capital Account Convertability ). This cash stream will triple by 2025 when the size of the Indian economy is expected to be US $ 4.5 Trillion. 5 Yearly Rent From Re-developed PSU Land by 3.00 3.00 100% 3000 13647 the Indian Social Infrastructure Corporation ( ISIC ) Under The Urban Equity Withdrawl Programme ( Phase I ) . 6 Yearly Rent From Redeveloped PSU Land by 10.00 10.00 100% 10000 45490 the Indian Social Infrastructure Corporation ( ISIC ) Under The Urban Equity Withdrawl Programme ( Phase II ) .
  • 9. Assumptions On Financing / Sources Of Funds : US $ / Rs Exchange Rate ( 18th march 2010 ) 45.49 Sl. No. Source Description Estimate of Total Notional Amount % Of Source Amount Available Amount Available Each Possible Corpus Potentially Available / Proposed For Each Year Year ( ( US $ Billion ) Year ( Education ( US $ Million ) Thousands of Crores ) US $ Billion ) Megaproject 7 Teacher / Content Outsourcing Business : The 21.04 10.52 40% 4207.52 19140 Education Megaproject will be employing approximately 1.74 Million Teachers across India on 5 year Rolling Contracts. It is proposed that the terms of the contracts be flexible enough to permit teachers to organize themselves into teams which could then, in an organized manner , produce education content for the world market. The revenue earned through this venture will be shared by teachers and the ISIC in the ratio 60:40 with the larger sum going to the participating teachers. They will also participate under the Aegis of the ISIC in a Teacher Exchange Programme with schools in foreign countries. For the purposes of this calculation the total teacher strength is assumed as 1.5 Million. It is further assumed that just 50 % of the teachers will participate in this venture and that each teacher's extra earning potential is Rs 5,50,000 each year. 8 Students on Fractional Vouchers / NRI Quota 5.10 5.10 100% 5103.80 23217.18 and SAARC / Foreign Students : A majority of the students within the Megaproject will be on Education Vouchers ( 60 - 70 % ). However some 37 % + of the students from middle class families and well off families will be on fractional vouchers with 2 / 3rd subsidy and an additional 2 - 3 % could be from SAARC countries or NRI / Foreign Students who will pay a premium ( Double The Voucher value ). ONE TIME FUND FLOWS - DIRECT FINANCE FOR CONSTRUCTION 9 Coordinated Equity Withdrawl By the ISIC on 40 40 100 40000 181960.00 PSU Owned Land in Metros and Large Cities 10 Un-Utilized Funds with various Ministries and 21.59 21.59 100 21590 98212.91 NGO's 11 Equity Infusion By Promoter groups for 25,500 6.74 6.74 100 6741.48 30666.98 Day Schools and 4500 Residential Schools 12 Committed and Un-Utilized Funds Lying with the 15.6 15.6 100 15600 70964.40 World bank and the Asian Development Bank, on which the government of India is paying Commitment Charges of over Rs 125 Crores each year. Assumptions On Financing / Sources Of Funds : ` US $ / Rs Exchange Rate ( 18th march 2010 ) 45.49
  • 10. Sl. No. Source Description Estimate of Total Notional Amount % Of Source Amount Available Amount Available Each Possible Corpus Potentially Available / Proposed For Each Year Year ( ( US $ Billion ) Year ( Education ( US $ Million ) Thousands of Crores ) US $ Billion ) Megaproject OTHER POTENTIAL SOURCES OF FINANCE 13 In early March ' 2010 , India's Foreign Exchange 278 2.78 1% 2780 12646.22 Reserves stood at US $ 278 Billion. This is a huge sum and it has earlier been suggested by several others that a small part of the RBI's reserves should be used to finance Infrastructure projects in India. Schools represent essential social Infrastructure and the Education megaproject could draw on some of this resource. 14 Dis-investment in Indian Public Sector Entities 30 3 10% 3000 13647.00 and Banks. This represents a huge potential scorce of funds . However successive governments have been using dis-investment proceeds to help bridge the huge fiscal deficits that the government of India runs. In fact this money is best used to finance productive capital expenditure as in education projects that greatly enhance the country's GDP. If US $ 1.7 Trillion is to be invested in Infrastructure over the next 10 years, the first sector that will expand exponentially is banking. Government of India will do well to dis- invest it's stake in a few large banks to raise additional resources while at the same time allowing a greater private sector role in the banking industry , with strict controls in place of course.
  • 11. Pg 1 0f 4 Remarks / Critical Assumptions If net / delta addition to GDP is US $ 20 Billion each year solely due to GST implementation, then government can afford to earmark 10 % of that Delta to an Education Mega Project from the Consolidated Fund Of India through a special legislation that creates " The Education Megaproject Fund ". It is being assumed here that the NCAER has taken a 25 year period for calculating the Net Present value at a 3 % discount rate. If they have taken a 15 year period instead , then the yearly sums that will be available will be much larger. A new tax proposal on the lines of the recently implemented tax on the services component of housing projects ( 2010 Budget ) will need to be implemented to extend service tax to the labour and services component of Infrastructure projects. This will very easily generate a new cash source for creating the human resources necessary to plan and build large Infrastructure in India. Right now there is a shortage of 30 million trained people in the construction Industry alone ( Mckinsey 2008 ). So the imposition of a service tax on the labour / skill component of Infrastructure projects is fully justified . It is being assumed here that 30 % of an Infrastructure Projects cost is services and Labour. It is also being assumed that servoce tax on the Labour and services component will be @ 10 %. Employers are being taxed because they are getting access to qualified graduates free of cost and have not paid a single paise for their education. This tax will be levied at the rate of 3 % on the Cost to Company ( CTC ) of the employee and will be paid not by the employee but the employer. Please note that the current education cess and professional taxes are separate taxes and are being borne by the employee. Companies must also pay a tax because they are getting trained manpower free of cost. We believe that companies will not be able to pass this tax on to employees as companies will also be competing with each others in a rapidly growing economy where skills shortages are acute. Also it has been realistically assumed that only 25 % of this tax is collectable from graduates as many work in the un-organized sector. Many housewifes are graduates too . If independent professionals such as doctors can be taxed, the collection will go up dramatically. Also it is assumed that 80 % of this tax will go for primary education as a person spends 80 % of his time in school.
  • 12. Pg 2 Of 4 Remarks / Critical Assumptions Given that India is going to be the largest growing market in the world over the next few years we do not expect business to move away from India due to the imporition of this tax. The Imposition of this tax has been considered in the latest meeting of the G 20 nations in 2009 and It has also been supported for implementation by none other than our own RBI governor Dr. D SubbaRao in Dec ' 2009. Since 90 % of the worlds forex transactions are cleared in just a few financial centres globally , it will not be difficult to impose this tax which can provide much needed funds to Education and Healthcare projects in Rural India. Subsequent to the sale of 3000 Acres out of a total of 30,000 Acres of prime real estate in Indian Cities, The ISIC will publish a Global Tender Inviting leading Urban Developers from around the world to come to India to develop Large Real Estate Projects. 27,000 Acres of Urban, Government owned land will be put out on bids under a Public Private Partnership. Indian companies will participate in the bidding rounds and will compete with foreign companies. The bids will require project developers to pay an upfront annuity / yearly instalment of US $ 3 Billion for the 27,000 acres taken together over the first 10 years and submit plans for the development of Financial centres where the ISIC will be the owner of 50 % in each project. Developers will need to come up with ideas whereby the net earnings to the ISIC will be of the order of US $ 10 Billion each year from the 27,000 Acres of prime real estate starting from the 7th year after the Bidding. This effective Urban Equity Withdrawl plan will provide funds for rural development. Phase II cashflows will begin to accrue from year 7 onwards as the PPP projects in Urban Development begin yielding a return of US $ 10 Billion to the ISIC as explained under V above.
  • 13. Pg 3 Of 4 Remarks / Critical Assumptions It is being assumed that revenues from the Teaching Content Development Business and the Overseas Teacher Exchange Programme will be shared by Teachers / ISIC in the ratio 60 :40, with 60 % of the revenues going to the teachers. We have therefore included only the balance 40 % of revenues as ISIC Income. Further , we do not believe that this activity will disturb teaching activity in the country as teachers have considerable amounts of free time and because the schools have been overstaffed by design not just for sharing teachers with 420,000 existing and deprived schools but also with this kind of revenue opportunity clearly in mind. Fees for Children will be quite affordable to parents as they well be charged at 1/ 3rd of the value of the voucher. In the case of Day schools fees will be in the range of Rs 25000 / child and in the case of fully residential schools, fees will be in the range of Rs 65,000 - Rs 75,000 which we believe are very affordable for the Middle Class and above. The procedure for this is explained in great detail in the project concept document under construction phase financing. This financing option has emerged through a study of the Comptroller & Auditor General's report ( CAG Report ) for 2007 - 08. A special audit committee will be constituted to trace and recover this money for the Education Megaproject. This money will come from the Promoters of 30,000 Schools over a 10 year period ( 2012 - 2022 ) This financing option has emerged through a study of the Comptroller & Auditor General's report ( CAG Report ) for 2007 - 08. Usually World Bank / ADB Loans are available for specific projects and cannot usually be re-assigned , We believe it will be possible to lift the entire corpus for this single Education Megaproject as the project subsumes within itself areas as diverse as Women and Child health and education to rural sanitation and rural roads etc. Pg 4 Of 4
  • 14. Remarks / Critical Assumptions The Education Megaproject has not included Foreign Exchange Reserves in its sources in the current Rev 03 of the project. This represents a potential future source of finance. The Education Megaproject has not included Dis-investment proceeds in its sources in the current Rev 03 of the project. This therefore represents a potential future source of finance.
  • 15. The Indian Primary & Secondary Education Mega Project The Nataraja Foundation Project Legal & Financial Structure www.nataraja.org.in Government Of India Ministry Of HRD Ministry Of Finance CONSTRUCTION PHASE ( 2012 – 2023 ) Parliament Ministry Of Disinvestment ( FUTURE SOURCE ) Consolidated Fund Of India Size Of The Indian Economy US $ 1.3 Trillion ( 2010 ) Exchange Rate ( 18th Mar ‘ 2010 ) : Financing Concept is similar to the 1 US $ = Rs 45.49 Golden Quadrangle / Highways Financing. 8 different sources of funds are routed to a special " Education Megaproject Fund " … A special Act of Parliament will enable this. INDIA BASED SOURCES OF FUNDS 1. Yearly Fund Flows Sovereign 10 % of New Goods & Services Tax ( GST ) US $ 2.0 Billion / Year Guarantee Receivables = US $ 2.0 Billion / Year US $ 6.64 Billion / Year US $ 6.64 Billion / Year INDIAN & INTERNATIONAL 30 % of Proposed New Tax on Service BANKS US $ 1.53 Billion / Year Component of Infrastructure Projects = US $ 1.53 Billion / Year Collected From Employers of Graduates US $ 2.02 Billion / Year Securitize 10 year annual Graduate Tax = US $ 2.02 Billion / Year Receivables at 6 % and Draw US $ 49 Billion Quantized Tobin Tax on US $ 1.09 Billion / Year Forex Transactions = US $ 1 .09 Billion/Year 2. One Time Fund Flows US $ 3 Billion Education Megaproject PSU Owned Metro / Large City Real Estate US $ 49 Billion For Capex Fund Act Equity Withdrawl = US $ 40 Billion Education Megaproject Fund Unutilized Funds ( US $ 21.59 Billion ) With Various Govt. Ministries and NGO’s US $ 67.15 Billion for Capex as per GAG Report 2007 -08 + US $ 3 Billion Annual Rent US $ 67.15 Billion Special Act Of Parliament to give Legal status to SPV and enable Sale Of Navratnas, PSU's , Banks = US $ 0.00 Future standby source Fast Track Execution based on US $ 0.00 Billion US $ 15.6 Billion Initial Sovereign Guarantees US $ 5.56 Billion For Capex 30,000 Private School Operators ( Equity Infusion ) Indian Social Infrastructure ( ISIC Act ) Corporation ( ISIC ) US $ 15.6 Billion Sovereign Guarantee Low cost Loans for Capex to Of Committed But For School Capex Loans School Concessionaires. This Un-Utilized is in addition to the US $ 15.6 Funds Billion that is paid as a bullet payment to the ISIC World ADB Bank Capacity To Raise / Spend US $ 134.75 Billion OR Rs 612,977 Crores Project Construction Cost = 131.38 Billion ( 30,000 Hub Schools + Infrastructure for Teachers Sharing Programme ) Financial plan therefore raises sufficient funds for construction
  • 20. The Indian Primary & Secondary Education Mega Project Project Legal & Financial Structure The Nataraja Foundation www.nataraja.org.in Government Of India Ministry Of HRD Ministry Of Finance BOT OPERATIONS PHASE Parliament Ministry Of Disinvestment ( FUTURE SOURCE ) Consolidated Fund Of India Size Of The Indian Economy US $ 4.5 Trillion ( 2025 ) Exchange Rate ( 18th Mar ‘ 2010 ) : 1 US $ = Rs 45.49 Key Point to note is the size of the INDIA BASED SOURCES OF FUNDS Indian Economy in 2025 1. Yearly Fund Flows 10 % of New General Service Tax Based US $ 6.0 Billion / Year Students on Fractional GST Receivables = US $ 6.00 Billion / Year Vouchers US $ 4.88 Billion / Year and NRI / SAARC Quota US $ 17.86 Billion / 30 % of Proposed New Tax on Service US $ 4.59 Billion / Year Component of Infrastructure Projects Year = US $ 4.59 Billion / Year Teacher Outsourcing Business US $ 4.207 Billion / Graduate Tax = US $ 4.0 Billion / Year US $ 4.0 Billion / Year Collected From Employers of Graduates Year US $ 3.55 Billion Securitization Quantized Tobin Tax on Forex Transactions = US $ 3.27 Billion / Year Facility Pending Grant / Year US $ 3.27 Billion / Year US $ 10 Billion Yearly Rent From High FSI Re-Developed PSU Properties all over India = US $ 10 Billion Education Megaproject US $ 17.86 Billion For Fund Act Opex US $ 4.5 Billion US $ 12.64 Billion Service Tax Feedback For Opex Special Act Of Parliament to give Service Tax US $ 10.0 Billion Annual Rent Received Legal status to SPV and enable From Developer Partnerships Fast Track Execution based on @ 10 % Initial Sovereign Guarantees Education Megaproject Fund Capacity To Raise & Spend US $ 45 Billion / Year Indian Social Infrastructure ( ISIC Act ) Corporation ( ISIC ) US $ 45 Billion Revenue For Created Ecosystem Spend US $ 45 Billion On Primary & Secondary School Operations / year + PHASE II Expansion ( if Any ) through securitization of specific cashflows 18 Million Students On Education Vouchers 30,000 Private School Operators TEACH ( Including 108 Million Students Under Teacher Sharing Programme ) = 126 Million Children Service Providers Ecosystem
  • 23. INSTITUTIONAL STRUCTURES , LAND BANKS AND URBAN EQUITY WITHDRAWL & MISC ISSUES The Indian Primary & Secondary Education Mega Project Government Of India The Nataraja Foundation Ministry Of Finance www.nataraja.org.in Ministry Of HRD Ministry Of Disinvestment ( FUTURE SOURCE ) Parliament ISIC Act 25 % Equity 75 % Equity Central "The Indian Social Infrastructure Corporation " 28 State Government sets up Governments 30,000 Acres The Primary & Secondary Education Megaproject SPV 900,000 Acres Of Land For Setting Up Schools Of Land all Over This 9,30,000 Acres , can be visualized approximately as a strip of Land 62 India Km by 60 Km. It is not much land for India taken as a whole. Out of this, with Land Bank of 9,30,000 Acres all over India 30,000 Acres can be easily spared / collected by the central government from PSU's and government organizations in Metros and B category Towns . The balance 9,00,000 Acres will be in Villages and towns in 28 States and 7 Union Territories all over India and will be given out on bids for setting up Schools and Hospitals. Land For Equity Deal Service Partners PPP Contracts The Indian Comptroller & Auditor General Commercial Land Bank : 30,000 Acres to be held in Land Bank . Upto 24 % of Cherry Picked land to be sold to Finance 40 % Primary & Secondary Education Of India to Monitor All ISIC Cashflows + All Capex of Primary & Secondary Education Project / Healthcare Megaproject . Balance 76 % land to Mega Project Sales & Lease Rentals Of ISIC Related Land be given on rent in towns and cities to large city developers so as to earn Cash to meet project ( Executive Board ) Under This Project. Operating Cash Requirements so as to subsidize Education and Healthcare provision to Low Income Groups. Note on PSU Land Based Urban Equity Withdrawl : 10 % of 30,000 Acres Cherry Picked If just 10 % of the land transferred in Metros and Large Towns to the ISIC from PSU's is Prime Real Estate in Big Issue Of initial capital (2015 - 2016). prime real estate it will be approximately 3,000 Acres ( all over India as the SPV in all will Cities and Important Towns to be sold to finance 40 % Stock : India Domestic & International Offering have 9,30,000 acres, of which 30,000 acres will be held in the Land Bank while 900,000 will of Project Capex. All such go for the school project & Healthcare project). This 10 % land will be worth approximately sales will be under a Of 500 Million Equity Shares or Rs 100 each 180,000 crores ( Approximate land cost in a Metro per acre has been taken as Rs 60 Crores Transperant bidding For a premium of @ Rs 400 Per Share to raise while actual prices range from Rs 400 Crores / Acre in Mumbai to Rs 2 Crores / Acre in a process and SPV land sold US $ 5.28 Billion as Equity will have an FSI ranging small town ). from 4 - 16 for creation of Financial Centers in Bonds : International Bond Offering Sufficient The land bank will make the SPV one of the highest net worth companies on the Indian Stock major Towns. Thereby For 3 Years of Project Construction : Exchanges. It will then be possible for the SPV to raise its own resources by selling land maximizing development of scarce land as also available Targeted Debt / Equity Ratio = 3 : 1 ( Through a competitive and transperant bidding process ) to developers or by issuing long funding for the project. term tax free bonds on par with RBI bonds. Central and state governments will take land from Bond Amount = US $ 15.85 Billion PSU 's and state government undertakings which are not utilizing the land optimally and Coupon rate = transfer it to the ISIC which is working towards a National Mission. The Chief Secrateries of Duration = 5 Years the 28 states will be on the board of the ISIC so each states interests will be fully protected. Addressing PSU Concerns To fully accomodate the commercial concerns of PSU and their government and private shareholders, they will get an enhanced FSI ( either on the same plot or on their other Balance 90 % land to be The US $ 15.85 Billion Bond issue will help finance any properties that are not being given away ) . For instance if a PSU is giving away prime real given on rent by ISIC to large developers from around the world ( including Indian shortfall in Capital Requirements. estate in Mumbai city which currently has an FSI of 2.66 , they will get an FSI of 3.50 in developers ) to another property in the same locality ( if they own two properties close to each other and are Provide Operating Cash giving away only one property) or an FSI of 5.0 in a less valuable location, in a manner that Project Land to Finance Education, Food and Clothing their commercial interest is protected. They could also be issued TDR's ( Transfer of 900,000 Acres in all to be and Hostel Facilities for needy students from allocated for Social Low Income Families ( This will however be Development Rights ) which they could trade on the market or they could receive cash for the just once source for OPEX ). Money to be Infrastructure Projects in enhanced FSI that accrues on the actual sale of their plots. So , If the Plot has been granted Education & Healthcare given directly by ISIC to the school operators an additional FSI of 8 , Cash equivalent of 5.5 FSI will go to the Social Infrastructure without any involvement of local government. Megaprojects and a cash equivalent of 2.5 FSI will be paid in cash or issued as TDR's to the All such payments and their use to be monitored by Comptoller & Auditor General PSU after the sale of land through a transperant bidding process to Indian or International Of India. consortia , thereby avoiding any litigation from shareholders. It must be understood however that increased FSI requires increased Infrastructure support in terms of city amenities and better municipal infrastructure. This needs to be incorporated into the city's development plan. The land transfers and sales however can proceed immediately and need not wait for the city development plans to be changed. Execute US $ 131.38 Billion Primary & Secondary Education Mega Project between 2012 - 2023 Bootstrap I Bootstrap II Phase I Phase II Phase III Q1 - Q4 2011 Q1 - Q4 2012 2012-2014 2015-2017 2018-2023 School Megaproject Enabling School Megaproject Enabling Total Schools 6000 Total Schools 9000 Total Schools 15000 Infrastructure Infrastructure Teachers Teachers Training Training Day Schools 5100 Day Schools 7650 Day Schools 12750 100 100 Schools Schools Residential 900 Residential 1350 Residential 2250 Master Masons * 30 Master Masons* 30 Schools Schools Schools Training Schools Training Schools * Master Masons to be trained in the * Master Masons to be trained in the Vernarcular Architecture Style Vernarcular Architecture Style Once trained , Master Masons and Teachers could organize themselves into Guilds ( Not Cooperatives ). The Masons Guilds could bid for contracts to build the schools / hospitals. Note on SPV Executive / Regulatory Powers : The BOO / BOT concession for the Primary & Secondary Schools will be given with all necessary clearences and professional affiliations in a single window. If a promoter group / concession awardee fails to meet certain transparant criteria ( specified in a 1 page rule book ), the concession will be terminated and offered to a new developer ... there will be no appeal to any court and the 1 page rulebook will be very clear on concession termination issues. Same structural vehicle / arrangement can be used to finance higher education. Governance : Project & Operations Phase There are huge cashflows involved in both the project execution and operations phases of the Indian Primary & Secondary Education Megaproject . The execution phase will involve the raising and expenditure of approximately US $ 131.38 Billion or Rs 597,651 crores between 2011 and 2023 and the operations phase will involve project revenues and rent allocations ( which will help approx. 126 million children to receive quality education free of cost ) of approximately US $ 42.57 Billion each year after 2023. The scale of cashflows needs to be monitored in a transparent manner and the Megaproject needs to be open to public audit. It is therefore an explicit requirement of the project that it be executed in a
  • 24. Governance : Project & Operations Phase There are huge cashflows involved in both the project execution and operations phases of the Indian Primary & Secondary Education Megaproject . The execution phase will involve the raising and expenditure of approximately US $ 131.38 Billion or Rs 597,651 crores between 2011 and 2023 and the operations phase will involve project revenues and rent allocations ( which will help approx. 126 million children to receive quality education free of cost ) of approximately US $ 42.57 Billion each year after 2023. The scale of cashflows needs to be monitored in a transparent manner and the Megaproject needs to be open to public audit. It is therefore an explicit requirement of the project that it be executed in a corporate setup, outside the concerned ministries , under government of India and to implement a context based communications platform for project MIS. In fact , it is better not to execute this project , than to do it within a ministry or the existing education systems where information in-efficiencies and leakage of funds will undermine the very basis of the projects and lead to huge cost and time over-runs. The project needs therefore to be executed and operated in a corporate setup , under a Special Project Vehicle ( SPV ) set up under an act of Parliament ( The ISIC ) in the same manner as organizations such as IOC, ONGC, NHAI , IIFC and UTI were set up. The chief secretary’s of all states , The Chairman of the National Knowledge Commission, The Secretary , Ministry of HRD, the Deputy Chairman of the Planning Commission, The Minister of HRD will be members of the board. The responsibility for audit of the organization will vest with the Auditor General of India. The Masons guilds are a very important part of this project as they will generate huge employment opportunities in rural india. As envisaged however , the guilds will essentially be self governing and market forces. will decide their profitability. Government or local political control on these cooperatives will kill these guilds and therefore it is essential to protect their interests only through broad , non- interfering regulation. The guilds must therefore never be turned into cooperatives which breed corruption and in-efficiency.
  • 28. Stand Alone ( Day School ) Facility With 300 Children X 2 Shifts, Full Time 51 www.nataraja.org.in Teachers + 7 Visiting Faculty Zero Drop out rate is being assumed IMPORTANT NOTE ON OPERATING FINANCIALS OF THE SCHOOLS: Floor Space Required ( Class due to superior teaching inputs … Room + Hostel ) in Sq Ft @ Fractional Vouchers in Day schools Project will rely less on pull factors such will provide 2/3 subsidy. Rs 850 / Sq Ft … This includes This project works because the Education SPV provides for the total costs of education for 18 as Mid Day Meal Schemethe Hub Schools) . Theconstruction & Furniture Million Children ( In & More on Vouchers also include the cost of the teacher sharing programme which reaches another For ease of calculations students 108 Million Children who are attopresent covered byrequired Better and Inspiring Teachers keep students in school. the Sarva Shiksha Abhiyan ( SSA ). A total of 126 Million Children are are added in on fractional vouchers therefore covered with the best teaching resources possible. the end. This spreadsheet Looks exclusively at the financial viability of the schools from the point of view of private developers / Consortia who will be investing just Rs 0.88 Crore equity each and raising the balance of their 60 % share as Interest free debt during the construction period from the World Bank / Asian Development Bank . Here again Government of India will back this debt with a revolving $ 10 Billion sovereign loan guarantee and take on the cost of the debt during the construction period. After the construction is complete, the World Bank / Asian Development Bank will be replaced in the financial structure by a commercial bank and the debt will carry a normal market rate of interest . The project developer will pay back this loan and any interest that will be due. The ISIC raises all the money required through unique and innovative financing. Please read the project concept document for more details on financing
  • 29. Stand Alone Residential Facility With 600 Children ( Residents )+ 200 Children as Day Scholars www.nataraja.org.in , 51 Full Time Teachers + 7 Visiting Faculty Zero Drop out rate is being assumed IMPORTANT NOTE ON OPERATING FINANCIALS OF THE SCHOOLS: due to superior teaching inputs … Floor Space Required ( Class System has sufficient inbuilt Project will rely less on pull factors such Room + Hostel ) in Sq Ft @ This project works because the Education capacity for de-bottlenecking. SPV provides for the total costs of educationfor Mid Day MealChildren&(More on Hub Schools) . Rs 850 / Sq Ft Furniture as 18 Million Scheme In the The construction & … This includes Vouchers also include the cost of the teacher sharing programme which reaches another 108 Million Children who to keep present covered by Better and Inspiring Teachers are at required students in school. the Sarva Shiksha Abhiyan ( SSA ). A total of 126 Million Children are therefore covered with the best teaching resources possible. This spreadsheet Looks exclusively at the financial viability of the schools from the point of view of private developers / Consortia who will be investing just Rs 1.75 Crore equity each and raising the balance of their 60 % share as Interest free debt during the construction period from the World Bank / Asian Development Bank . Here again Government of India will back this debt with a revolving $ 10 Billion sovereign loan guarantee and take on the cost of the debt during the construction period. After the construction is complete, the World Bank / Asian Development Bank will be replaced in the financial structure by a commercial bank and the debt will carry a normal market rate of interest . The project developer will pay back this loan and any interest that will be due. The ISIC raises all the money required through unique and innovative financing. Please read the project concept document for more details on financing
  • 30. The Nataraja Foundation www.nataraja.org.in Economics Of The Teacher Sharing Programme : It is felt that teachers ( many of them women ) will need a place to rest and refresh themselves during their work in the villages. A guesthouse has therefore been created in the area close to each of the assisted schools. This will allow for further expansion of the programme. The guesthouses will also allow for overnight stay. Sample Teacher Guest houses 1. Teacher Guesthouses Cost : Rs 850 / Sq Ft A small teacher guesthouse will be constructed in the environs of each of the 14 assisted village school Teacher Guesthouse Costing : Cost Cost of 1200 Sq Ft guesthouse @ Rs 850 / Sq Ft 10.2 Land Development Cost @ 15 % of Guesthouse cost 1.53 Guesthouse Furnishing 2 Land Cost ( land given by government for free ) 0 Total Cost 13.73 Total Cost of 30000 X 14 Guesthouses ( 420,000 Guesthouses ) 57666 2. Vehicle / Fuel Costs For The Teacher Sharing Programme Type Of Vehicle Qty Of Distance Mileage Cost of Diesel Total Running Vehicle Travelled ( Rs / Litre ) Cost / Day / Day Large Buses 2 50 4 40 1000.00 Mini Vans 2 50 6 40 666.67 Jeeps 4 75 10 40 1200.00 Cars 4 75 12 40 1000.00 TOTAL COSTS Assumptions All assisted schools will be within a 50 Km radius of the hub school
  • 31. Each Small Vehicle Does 75 Km / Day on Average and Each Bus / Minibus travels 50 Km / Day Cost of Diesel @ Rs 40 / Litre. Global petroleum markets are volatile and marginal pricing economics constrain upw Mileage Assumptions Km / Litre Of Diesel Bus 4 Mini Bus 6 Jeep 10 Car 12 Notes : 1. Driver & helper costs are included in staff costs 2. Teacher costs are included in the school costs and therefore not priced here.
  • 32. Architect : RL Kumar ( Bangalore ) during their work in the villages. A l allow for further expansion of the Teacher Guest houses s 850 / Sq Ft 14 assisted village school Lakhs Lakhs Lakhs Crores Total Running Maintenance Total Total Operating Cost / Year of 250 Cost / Year / Maintenance Cost of Fleet Per Days Vehicle Cost Year 250000.00 30000 60000 310000.00 166666.67 25000 50000 216666.67 300000.00 10000 40000 340000.00 250000.00 10000 40000 290000.00 966666.67 190000 1156666.67
  • 33. 50 Km / Day al pricing economics constrain upward price view.