NEWS FOR FOREIGN UNIVERSITIES DESIROUS OF SETTING UP INDEPENDENT CAMPUS IN INDIA

As per the powers vested with the Central Government to make rules under the University Grants Commission Act, 1956, the Ministry of Human Resource Development (“HRD”) is in the process of finalizing the UGC (Established and Operation of Campuses of Foreign Educational Institutions) Rules.

The HRD Ministry issued a Press Release[1]  dated September 10, 2013 which puts out pre-conditions for foreign universities desirous of setting up independent campuses in India.

PRECONDITIONS

A Foreign Education Institute (“FEI”) desirous of setting up and operating a campus in India to offer foreign degrees without having a local partner should:

a) Get itself registered as a not for profit entity[2];

b) Maintain a corpus of not less than INR. Twenty five crores (25,00,00,000.00); and

c) Get itself notified as Foreign Education Provider (“FEP”) with University Grants Commission (“UGC”);

Further the FEI should:

a) have been in existence for at least twenty (20) years in the country of origin; and

b) be ranked in the top four hundred (400) colleges in one of three global rankings being:

i)        Times Higher Education ranking (UK);

ii)       Quacquarelli Symonds ranking (UK); and

iii)      Shanghai Jiao Tong University ranking (China).

THE WAY FORWARD

The Ministry of HRD had sought comments and observations of the Department of Industrial Policy and Promotion (“DIPP”) and the Department of Economic Affairs (“DEA”) on the Rules.

Once the executive order is notified, it will render the Foreign Educational Institutions (Regulation of Entry and Operations) Bill, 2010 irrelevant and desirous FEI’s shall, only after due compliance with and fulfillment of the criteria mentioned above, be eligible to independently operate and set up campuses in India[3].

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[1] The press release is effectively an executive order which does not need to be approved by the Parliament and also the details of the press release are being vetted by the law ministry and an official notification will be published soon.

[2] Non profit Companies cannot distribute profits or dividend among members, thus depriving such companies from repatriating money.

[3] Currently, a foreign university needs to join hands with a local education provider to offer courses.