Lok Sabha Question No. 1171 (UNSTARRED), answered on 2015-12-07
Subject: Philanthropic Organisation in Education Sector
Ministry: HUMAN RESOURCE DEVELOPMENT
Asked by: B.V. NAYAK

## GOVERNMENT OF INDIA MINISTRY OF HUMAN RESOURCE DEVELOPMENT DEPARTMENT OF SCHOOL EDUCATION & LITERACY

## LOK SABHA UNSTARRED QUESTION NO. 1171 TO BE ANSWERED ON 07.12.2015

## Philanthropic Organisation in Education Sector

## 1171.   SHRI B.V. NAIK:

Will the Minister of HUMAN RESOURCE DEVELOPMENT be pleased to state:

- (a)   the details of regulatory frameworks which govern philanthropic organizations in the education sector;
- (b)   the  details  of  such  organizations  that  have  recently  emerged  in  the  country both at school and higher education level;
- (c)   whether  the  Government  recognizes  contributory  role  of  these  institutes  in imparting quality education in the country; and
- (d)   if  so,  the  details  thereof  and  the  steps  proposed  to  promote  philanthropic engagement in the education sector?

## ANSWER MINISTER OF HUMAN RESOURCE DEVELOPMENT (SMT. SMRITI ZUBIN IRANI)

- (a) A  recognized philanthropic organization in the education sector can either be in the  form  of  a  Company  (registered  under  the  Companies  Act,  2013),  a  Society (registered  under  the  relevant  Societies  Registration  Act)  or  a  Trust  (registered under the relevant Trust Act). Philanthropic contributions in social sectors, including  the  education  sector,  by  a  company,  are  governed  by  the  provisions  of Corporate Social Responsibility (CSR) under the Companies Act, 2013. As per this Act, the Board of every  company, having net worth of rupees five hundred crore or more  during  any  financial  year,  shall  ensure  that  the  company  spends,  in  every financial year, at least two per cent, of the average net profits of the company made during  the  three  immediately  preceding  financial  years,  in  pursuance  of  its  CSR Policy.  Further,  the  company  shall  give  preference  to  the  local  area  and  areas

around it where it operates, for spending the amount earmarked for CSR activities. Remittances by philanthropic organizations in the education sector are governed by the relevant laws and regulations regarding overseas remittances, tax liability etc.

A not-for-profit  Society,  registered  under  the  relevant  Societies  Registration  Act, 1860 or a not-for-profit Trust, registered under the Public Trust Act, or a not-forprofit  Company under Section 8 of the Companies Act, 2013 can set-up schools, and  get  affiliated  with  the  various  Education  Boards.    They  can  also  sponsor  a proposal  to  the  University  Grants  Commission  (UGC)  for  recognition  of  their educational  institution  as  a  Deemed  to  be  University  in  accordance  with  the provisions of the UGC (Institutions Deemed to be Universities) Regulations, 2010. The status of a Deemed to be University is conferred by the Central Government on the advice of UGC.

- (b) The details are not centrally maintained.
- (c)&  (d)  Yes,  Madam.  The  Central  Government,  in  order  to  promote  philanthropic contribution  in  the  education  sector  has  allowed  States,  under  the  Centrally Sponsored  Scheme  of  Rashtriya  Uchchatar  Shiksha  Abhiyan,  to  mobilize  private sector funding including through innovative means including Corporate Donations and Philanthrophic grants, limited to 50% of the State Share.

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