Lok Sabha Question No. 2718 (UNSTARRED), answered on 2025-03-17
Subject: Commercialization of Education
Ministry: EDUCATION
Asked by: Shri Dhairyasheel Sambhajirao Mane, Shri Sudheer Gupta, Shri Chavan Ravindra Vasantrao

## GOVERNMENT OF INDIA MINISTRY OF EDUCATION DEPARTMENT OF HIGHER EDUCATION

## LOK SABHA UNSTARRED QUESTION NO.2718 ANSWERED ON 17.03.2025

## Commercialization of Education

2718.   Shri Sudheer Gupta:

Shri Chavan Ravindra Vasantrao:

Shri Dhairyasheel Sambhajirao Mane:

Will the Minister of Education be pleased to state:

(a)  whether  due  to  increasing  commercialization  of  education  connivance  between  colleges  and coaching institutes is increasing day by day and if so, the details thereof;

(b)  whether  the  Government  has  constituted  any  Committee  in  this  regard  and  if  so,  the  details thereof;

(c) whether the committee has submitted its report to the Government and if so, the details thereof and if not, the time by which it is likely to be done;

- (d) whether the Government proposes to cancel the recognition of the colleges involved in wrong doing in connivance with coaching institutes and playing with the future of students; and

(e) if so, the details thereof and steps taken in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF EDUCATION (DR. SUKANTA MAJUMDAR)

(a) to (e): National Education Policy 2020 (NEP 2020) inter-alia stipulates focus on regular formative assessment  for  learning  rather  than  summative  assessment,  which  encourages  the  prevailing 'coaching culture.' It also emphasizes conceptual understanding over rote learning and exam-oriented studying.

NEP 2020 inter-alia also provides that public and private schools are to assessed and accredited on the same criteria, benchmarks, and processes, emphasizing online and offline public disclosure and transparency. NEP 2020 also proposes similar standards of audit and disclosure as a 'not-for- profit' entity to all the education institutions. Surplus, if any, will be reinvested in the educational sector. Similarly, in higher education, all HEIs- public and private- shall be treated at par observing common guidelines. Multiple mechanisms with checks and balances will combat and stop the commercialization of education.

The Universities are autonomous bodies which are governed by their respective Acts/ Statutes etc. Based on the type of universities, the criteria for fee structure is administered. In respect of IITs/ IIITs / NITs/ IIEST/ IIMs etc, the fee structure is regulated as per the provision of the respective Acts/ Statutes. AICTE has issued instructions that institutions shall not directly or indirectly demand or charge capitation fee or demand any donation by way of consideration for admission to any seat in  a  course.  University  Grants  Commission (Institutions deemed to be Universities) Regulations, 2023 inter-alia stipulates that donation or capitation fee in whatever nomenclature or form, either directly or indirectly, is strictly prohibited. The fee shall be fixed transparently, keeping in view nonprofiteering or non-commercial aspects.

To curb the menace of unregulated coaching centers and increasing commercialization, the Ministry of  Education  has  issued  'Guidelines  for  Regulation  of  Coaching  Center'  to  all  States/UTs  on 16.01.2024 for consideration and adoption by way of appropriate legal framework. This has been followed up with the States / UTs vide letter dated 16.07.2024 at the level of Secretary, Deptt. of Higher Education.

The guidelines prohibits coaching center from making misleading promise or guarantee of rank or good marks to parents / students for enrolling them in the coaching center; coaching classes for those students who are also studying in institutions / schools shall not be conducted during their institutions / schools' hours, so that their regular attendance in such institutions / schools remains unaffected and also  to  avoid  dummy  schools.  The  guidelines  also  provides  that  the  fee  charged  for  courses  / curriculum shall be fair and reasonable; under no circumstances the fee shall be increased during the currency of the course; easy exit policy and refund of fee on pro-rata basis. It also stipulates provision for imposition of penalties, including cancellation of registration of coaching center, if the authorities find that it has violated any rules or conditions of the guidelines, in addition to any other legal action that may be taken for violating the law.

To reduce student's reliance on coaching center, SATHEE platform has been launched to provide high-quality study material, tutorials and other resources for the competitive examinations like JEE and  NEET,  along  with  providing  an  online  assessment  module  for  students.  It  leverages  Web Platform,  Mobile  Application,  YouTube  live  sessions  &  DTH  channels  for  delivery.  More  than 10,000 Hours of Learning Content is available across topics and subjects for the learners.

*****