Page 14 - EducationWorld Feb 2021 Low

Education News

the public for having successfully — have received notices
managed the Covid-19 pandemic, in for failing to pay EMIs on
her budget address Union finance loans taken from banks
minister Nirmala Sitharaman said: and non-banking finan-
“This moment in history is the dawn cial institutions. Most of
of a new era — one in which India them are affordable pri-
is well poised to truly be the land of vate aka budget private
promise and hope.” schools (BPS), which levy
Sorry Madam, this won’t happen fees of Rs.20,000-60,000
without the country’s human re- per year.
source being nurtured and developed Although a large num-
— one way or another. ber of BPS in the state are
Autar Nehru (Delhi) going under and are up for
sale, intelligent monitors
MAHARASHTRA Joseph (centre): pandemic opportunity of the academic scene are
Massive shakeout of Institutions which owns 135-plus believe this shakeout of private pre-
less than dismayed. They
educational institutions across India primaries and K-12 schools will ben-
huttered for over nine months and abroad, and has the backing of efit if “businessmen promoters” exit.
because of the national lock- Mumbai-based investment firm Foun- “The majority of BPS tend to be small
Sdown of all education institu- dation Holdings, India, is evaluating under-resourced enterprises. If they
tions countrywide to prevent spread eight schools in Kolhapur, Navi Mum- are taken over by corporate promot-
of the Coronavirus pandemic, a rising bai and Pune. ers with deep pockets, the quality of
number of private K-12 schools in Ma- Distress selling of private education education children receive will im-
harashtra are up for sale. Confronted institutions, especially pre-primary prove. It will lead to consolidation in
with government indifference, banks and K-12 schools, has been acceler- pre-primary and K-12 education,” says
unwilling to provide credit and par- ated by confusing populist circulars Rakesh Gupta, managing partner of
ents unwilling and/or unable to pay and orders issued by the Maharash- Lo Estro Advisors, a Hyderabad-based
fees, desperate school managements tra Vikas Aghadi (MVA) coalition gov- education consultancy firm.
are negotiating sales with funds- ernment regulating private school fees With middle-class households
backed private equity firms and cash under the Maharashtra Educational highly unlikely to favour government
rich educational groups looking to ex- Institutions (Regulation of Fee) Act schools, this viewpoint is finding many
pand their operations in India’s most 2011. Among its directives is levy of a takers. Corporates and large chains
industrialised state (pop. 115 million). ceiling on (online) tuition fees, direct- are likely to provide better infrastruc-
“School revenues have been hit ing private schools to retain non-fees ture, management and well-curated
by non-payment of fees by parents paying students in online classes, and curriculums, new technologies and
as well as the lack of new admissions allowing parents to pay fees arrears pedagogies, all of which will improve
since the lockdown last March. With for 2020-21 in installments. learning outcomes.
the pandemic having lasted much With schools’ cash flows badly hit Dipta Joshi (Mumbai)
longer than expected, more than 30 by ad hoc government diktats and
school managements, having ex- their not being classified as MSMEs KARNATAKA
hausted all borrowal options or un- (micro small and medium enterpris-
able to introduce academic or opera- es) entitled to special pandemic relief Fees order outrage
tional efficiencies, have contacted us. while being obliged to continue paying
We might either work as partners or teachers’ salaries, rentals, loan EMIs everal associations of private
take over some schools in toto,” says besides investing in new technolo- schools are all set to file writ
Francis Joseph, CEO, Crimson Ed- gies and training teachers to provide Spetitions in the high court
ucation Management Services Pvt. Ltd online learning, an estimated 100 against the constitutional validity of
(estb.2020), a Mumbai-based school- private preschools and K-12 schools a January 30 state government direc-
management and operating company. statewide are on the verge of bank- tive to all private schools — including
EuroKids International, which ruptcy. According to an official of the institutions affiliated with pan-India
has a chain of 30-plus K-12 schools Unaided Schools Welfare Association, CBSE and CISCE exam boards —
pan-India, is in talks with five K-12 Nagpur, who chose to remain anony- statewide to collect only 70 percent
schools while Ryan EduNation, an af- mous, 40 K-12 schools in Nagpur — of tuition fees for the academic year
filiate of the Ryan International Group the state’s alternative admin capital ending April 2021. Dispute redressal

14 EDUCATIONWORLD FEBRUARY 2021