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Privatisation in Higher Education- A Case 
Study of Bhubaneswar, Odisha
Introduction: 
 Higher education: the education, which is obtained after 
completing 12 years of schooling or equivalent and is of 
the duration of at least nine months (full time) or after 
completing 10 years of schooling and is of the duration of 
at least 3 years. The education may be of the nature of 
General, Vocational, Professional or Technical education 
 In today’s information societies, knowledge drives 
economic growth and development. Higher education is 
the main source of that knowledge – its production, 
dissemination and its absorption by any society. 
 Higher Education Institutions are a major source for 
providing the human capital required for knowledge 
production.
Privatisation of Higher Education: 
 Privatisation in education sector can be defined as the 
"transfer of assets, management, functions or 
responsibilities [relating to education] previously owned or 
carried out by the State to private actors. 
 substantial growth of private players in Higher Education 
is seen since last two to three decades 
 Most of the State Governments in India have encouraged 
the growth of private technical institutions and Universities 
to provide quality higher education in a greater way. 
 So this research aims on finding the reason of increasing 
participation of private providers over last two decades.
Problem Statement: 
 Today a new crop of institutions of higher learning has 
come up to fill in the gap in capacity creation and most of 
them are for profit. 
 According to estimates, these institutions account for 
nearly one third of all institutions of higher learning 
(Hashim, 2008). Since last two to three decades their 
numbers have increased unprecedentedly. 
 Hence it is the need of the hour to understand the extent 
of privatization especially in the Higher Education.
Research questions: 
In spite of having government colleges at low price of 
tuition fees and other facilities, still private sector is 
growing in higher education field with unprecedented 
rate since the past two decades. Why? 
 Is it a question of status in today’s world? 
 Is it because Parents and Students find it easy to get 
admission in Private Colleges as compared to 
Government Colleges? 
 Is it because of the standards of government colleges 
declining day by day or is it because the standards of 
private colleges increasing day by day? 
 Or is it because of the different educational 
environment that these private colleges create for 
their students?
Rationale: 
 Today, the growing commercialization has many reasons. 
These reasons include socio-economic policies adopted by the 
successive union governments, particularly since mid-eighties, 
the ideological commitments of the ruling class, proactive role 
of the judiciary, vested interest of the business houses, the 
failure of the State funded education system due to gradual 
withdrawal of the State in responding to the needs and 
requirements of the people and growing choice of the elite, 
neo-rich and affluent sections for the private sector institutions 
both local and foreign. 
 By privatising the higher education, it would lead to the 
access of higher education to a certain section of the 
society because of high tuition fees. And that should not 
happen. Largely it is a national concern as higher 
education is very much necessary and plays an important 
role in skill building.
 Hence, there is a need to study this phenomenon of 
privatisation especially the reason of this privatisation. 
 There has been study regarding the commercialisation. 
But there have been very less studies concerning why 
privatisation and commercialisation happening. 
Specifically this is true when it comes to understand it 
from the point of view from the people. This research is an 
attempt to bring this gap in the academic literature.
Aims and Objectives 
The research would mainly focus to understand the 
process of privatisation of higher education through 
a case study of Bhubaneswar, Odisha. 
 Finding out the extent to which people are going to 
private colleges and govt colleges 
 The reasons behind the choices people make 
regarding private and government colleges 
 To understand the reasons at the structural and 
policy level which have led to increasing 
privatisation in Higher Education.
Literature Review: 
 Starting with 1950-51, there were only 263000 students in 
all disciplines in 750 colleges affiliated to 30 universities in 
India. 
 This has grown by 2012 to 20 million students in 35539 
colleges affiliated to 700 universities making India’s 
system of higher education the third largest in the world in 
terms of enrolment and the largest in terms of number of 
institutions. 
 The withdrawal of government from providing financial 
support to university system suggested these institutions 
to become self supporting institutions. This action of 
government led to the emergence of new phenomenon of 
privatisation.
 It is justified that due to the privatization number of private 
professional institutes has increased. It is no doubt required to 
cope up with growing needs but this has been at the cost of 
quality. Government has given too much independence to 
these private institutes which would lead to the 
commercialization of education. This would give rise to many 
problems like hike in students’ fees, capitation fee, exploitation 
of professors etc. A steep hike in fees does not make higher 
education accessible, equitable and affordable to all. 
 Some positive effects of privatization are also noted. Private 
colleges are almost independent of political interventions. 
According to Honorable Supreme Court, unaided professional 
institutes are autonomous in their administration and decisions. 
But they have to follow necessary guidelines notified by 
regulating agencies regarding admission, examination, 
recruitment of staff etc. Better quality higher education can also 
be provided by private sector.
Methodology: 
 The research would be done in Bhubaneswar in few different 
colleges i.e. some private and some govt colleges. The sample 
selected is the batch of class 12 of Kendriya Vidyalaya No 1 
(2nd Shift) who passed out in 2012 and continuing their 
graduation in various government and private colleges and 
along with those students, faculties of the govt and private 
colleges in which they are studying and the parents of these 
students. 
 Methods to be used: Survey 
Interview 
Case Study 
Focused Group Discussion 
 Sample Size: 40 undergraduate students, 10 parents and 10 
teachers
References: 
 Balakrishnan, P. (2007), Higher Education in India: Will Six 
Percent Do It, Economic and Political Weekly, Sep 29 – Oct 5 
2007, Vol. 42, No. 39, pp. 3930-3934 
 Chattopadhyay, S. (2009), The Market in Higher Education: 
Concern for Equity and Quality, Economic and Political Weekly, 
July 18-24 2009, Vol. 44, No. 29, pp. 53-61 
 Choudaha, R. (2013), 
http://www.dreducation.com/2013/08/data-statistics-india-student- 
college.html (last accessed on 5th Oct 2014 ) 
 Hashim, S.R, (2008), State of Higher Education in India, India 
Development Report 2008, Oxford University Press 
 Indian Standard Classification of Education, (2014) Ministry of 
Human Resource Development, Department of Higher 
Education, Government of India
References Contd. 
 Malhotra, S.P. (2003), Business Behaviour in Indian 
Higher Education System and its Impact on Equality, 
Globalisation and Challenges for Education, Shipra 
Publication 
 Mathew, E.T. (1996), Financial Aspect of Privatisation of 
Higher Education: Issues and Options, Economic and 
Political Weekly, 6 April 1996, Vol. 31, pp. 866-869 
 Pinto, A. (2004), Higher Education, Ideology and Politics, 
Books for Change 
 Sharma, V. (2005), Commercialisation of Higher 
Education in India, Social Scientist, Debating Education 
(Sep – Oct 2005), Vol. 33, No. 9/10, pp. 65-74 
 http://planningcommission.nic.in/plans/planrel/fiveyr/10th/v 
olume2/v2_ch2_5.pdf (last accessed on 5th Oct 2014)
THANK YOU…

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Privatisation of Higher Education

  • 1. Privatisation in Higher Education- A Case Study of Bhubaneswar, Odisha
  • 2. Introduction:  Higher education: the education, which is obtained after completing 12 years of schooling or equivalent and is of the duration of at least nine months (full time) or after completing 10 years of schooling and is of the duration of at least 3 years. The education may be of the nature of General, Vocational, Professional or Technical education  In today’s information societies, knowledge drives economic growth and development. Higher education is the main source of that knowledge – its production, dissemination and its absorption by any society.  Higher Education Institutions are a major source for providing the human capital required for knowledge production.
  • 3. Privatisation of Higher Education:  Privatisation in education sector can be defined as the "transfer of assets, management, functions or responsibilities [relating to education] previously owned or carried out by the State to private actors.  substantial growth of private players in Higher Education is seen since last two to three decades  Most of the State Governments in India have encouraged the growth of private technical institutions and Universities to provide quality higher education in a greater way.  So this research aims on finding the reason of increasing participation of private providers over last two decades.
  • 4. Problem Statement:  Today a new crop of institutions of higher learning has come up to fill in the gap in capacity creation and most of them are for profit.  According to estimates, these institutions account for nearly one third of all institutions of higher learning (Hashim, 2008). Since last two to three decades their numbers have increased unprecedentedly.  Hence it is the need of the hour to understand the extent of privatization especially in the Higher Education.
  • 5. Research questions: In spite of having government colleges at low price of tuition fees and other facilities, still private sector is growing in higher education field with unprecedented rate since the past two decades. Why?  Is it a question of status in today’s world?  Is it because Parents and Students find it easy to get admission in Private Colleges as compared to Government Colleges?  Is it because of the standards of government colleges declining day by day or is it because the standards of private colleges increasing day by day?  Or is it because of the different educational environment that these private colleges create for their students?
  • 6. Rationale:  Today, the growing commercialization has many reasons. These reasons include socio-economic policies adopted by the successive union governments, particularly since mid-eighties, the ideological commitments of the ruling class, proactive role of the judiciary, vested interest of the business houses, the failure of the State funded education system due to gradual withdrawal of the State in responding to the needs and requirements of the people and growing choice of the elite, neo-rich and affluent sections for the private sector institutions both local and foreign.  By privatising the higher education, it would lead to the access of higher education to a certain section of the society because of high tuition fees. And that should not happen. Largely it is a national concern as higher education is very much necessary and plays an important role in skill building.
  • 7.  Hence, there is a need to study this phenomenon of privatisation especially the reason of this privatisation.  There has been study regarding the commercialisation. But there have been very less studies concerning why privatisation and commercialisation happening. Specifically this is true when it comes to understand it from the point of view from the people. This research is an attempt to bring this gap in the academic literature.
  • 8. Aims and Objectives The research would mainly focus to understand the process of privatisation of higher education through a case study of Bhubaneswar, Odisha.  Finding out the extent to which people are going to private colleges and govt colleges  The reasons behind the choices people make regarding private and government colleges  To understand the reasons at the structural and policy level which have led to increasing privatisation in Higher Education.
  • 9. Literature Review:  Starting with 1950-51, there were only 263000 students in all disciplines in 750 colleges affiliated to 30 universities in India.  This has grown by 2012 to 20 million students in 35539 colleges affiliated to 700 universities making India’s system of higher education the third largest in the world in terms of enrolment and the largest in terms of number of institutions.  The withdrawal of government from providing financial support to university system suggested these institutions to become self supporting institutions. This action of government led to the emergence of new phenomenon of privatisation.
  • 10.  It is justified that due to the privatization number of private professional institutes has increased. It is no doubt required to cope up with growing needs but this has been at the cost of quality. Government has given too much independence to these private institutes which would lead to the commercialization of education. This would give rise to many problems like hike in students’ fees, capitation fee, exploitation of professors etc. A steep hike in fees does not make higher education accessible, equitable and affordable to all.  Some positive effects of privatization are also noted. Private colleges are almost independent of political interventions. According to Honorable Supreme Court, unaided professional institutes are autonomous in their administration and decisions. But they have to follow necessary guidelines notified by regulating agencies regarding admission, examination, recruitment of staff etc. Better quality higher education can also be provided by private sector.
  • 11. Methodology:  The research would be done in Bhubaneswar in few different colleges i.e. some private and some govt colleges. The sample selected is the batch of class 12 of Kendriya Vidyalaya No 1 (2nd Shift) who passed out in 2012 and continuing their graduation in various government and private colleges and along with those students, faculties of the govt and private colleges in which they are studying and the parents of these students.  Methods to be used: Survey Interview Case Study Focused Group Discussion  Sample Size: 40 undergraduate students, 10 parents and 10 teachers
  • 12. References:  Balakrishnan, P. (2007), Higher Education in India: Will Six Percent Do It, Economic and Political Weekly, Sep 29 – Oct 5 2007, Vol. 42, No. 39, pp. 3930-3934  Chattopadhyay, S. (2009), The Market in Higher Education: Concern for Equity and Quality, Economic and Political Weekly, July 18-24 2009, Vol. 44, No. 29, pp. 53-61  Choudaha, R. (2013), http://www.dreducation.com/2013/08/data-statistics-india-student- college.html (last accessed on 5th Oct 2014 )  Hashim, S.R, (2008), State of Higher Education in India, India Development Report 2008, Oxford University Press  Indian Standard Classification of Education, (2014) Ministry of Human Resource Development, Department of Higher Education, Government of India
  • 13. References Contd.  Malhotra, S.P. (2003), Business Behaviour in Indian Higher Education System and its Impact on Equality, Globalisation and Challenges for Education, Shipra Publication  Mathew, E.T. (1996), Financial Aspect of Privatisation of Higher Education: Issues and Options, Economic and Political Weekly, 6 April 1996, Vol. 31, pp. 866-869  Pinto, A. (2004), Higher Education, Ideology and Politics, Books for Change  Sharma, V. (2005), Commercialisation of Higher Education in India, Social Scientist, Debating Education (Sep – Oct 2005), Vol. 33, No. 9/10, pp. 65-74  http://planningcommission.nic.in/plans/planrel/fiveyr/10th/v olume2/v2_ch2_5.pdf (last accessed on 5th Oct 2014)