The Kerala government’s decision to explore private investment, public-private partnerships (PPPs) and alternative financing models for universities has raised concerns that the newly formed University Finance Commission could facilitate the privatisation of higher education. The development comes amid the government’s efforts to redraft the Private University Bill.
Education experts have questioned the commission’s mandate, particularly its proposal to examine the possibility of converting aided colleges into private universities. They fear the move could lead to reduced government funding, increased student fees and weaken access to affordable higher education.
Rajan Varughese, former member of the Kerala State Higher Education Council, acknowledged the need to assess university finances but argued that the commission’s scope extended beyond improving the financial position of public universities. He expressed concern that the inclusion of private investment, PPPs, hybrid financing and conversion of aided institutions could encourage greater private control over higher education. He also pointed to the lack of safeguards to ensure that alternative funding mechanisms would supplement rather than replace government support.
Amruth G Kumar, professor at the Central University of Kerala, alleged that the government was using the commission as a means to introduce privatisation through an institutional process. He argued that the initiative appeared aimed at reducing the state's financial commitments and questioned the absence of specific provisions to protect and strengthen existing universities while identifying priority areas for investment.
K Sivaprasad, former interim vice-chancellor of APJ Abdul Kalam Technological University, questioned the proposal to convert aided institutions into private universities, particularly when the government was simultaneously seeking to prevent students from pursuing higher education outside Kerala. He also raised concerns about the commission's financial expertise, noting the absence of chartered accountants among its members.
However, commission chairman B A Prakash rejected the allegations, maintaining that the panel was not intended to facilitate the privatisation of state universities. He said its primary responsibilities included evaluating the financial condition of 10 universities, addressing unnecessary expenditure and identifying alternative sources of revenue.
Prakash recalled that an expert committee headed by him in 2012 had identified severe financial difficulties in five state universities and recommended the formation of a dedicated finance commission. He maintained that the present exercise was intended to improve financial stability and ensure the long-term sustainability of universities, while accusing political interests of misrepresenting its objectives.