From Our Correspondent
NEW DELHI : A parliamentary panel has
scuttled an industry association move to grab the
proposed 20 IIITs which are sought to be established
in the country soon under the public private
partnership (PPP) framework.
The panel, Parliamentary Standing Committee on Human
Resource Development, has objected to the
government’s plan to allow private players “full
control” of the proposed Indian Institutes of
Information Technology (IIITs) at the end of five years of their
establishment under the public private partnership
Submitting its report on the
Indian Institutes of
Information Technology Bill, 2013 seeking to set up 20 IIITs,
the penal recommended that the Human Resource
Development (HRD) Ministry should encourage
industry-academia collaboration for academics and
research only and refrain from setting up the IIITs
in the PPP mode.
According to the
Central and the state governments concerned would
contribute towards setting up of the institutes in
the ratio of 50 and 35 per cent respectively, while an industry
partner will contribute just 15 per cent of the
The land for the proposed institutes will be provided by
respective state governments and after completion of
five years, these institutions would become “fully
private” as industry partners will become major
stakeholders in their management and administration.
“The proportion of the role being given to the
industry partner in proposed legislation was
disproportionately large compared to the
contribution it would be making towards the cost of
establishing the institutions,” parliamentary
standing committee noted in its report tabled in
Parliament on December 13.
An individual entity having a stake on the ownership
might give rise to conflict between the welfare
objectives of the government and the profit motive
of the industry “a few years down the line”.
“The committee strongly feels that instead of having
IIITs under the PPP mode, what need to be encouraged
are industry academia collaborations,” it added.
Finding no justification in the government plan to
set up IIITs in PPP mode, the penal noted that
Indian Institutes of Technology (IITs) and National
Institutes of Technology (NITs) were functioning
“They are known worldwide for their excellence
despite no industry having a stake in their
ownership. In fact, industries now compete to
associate themselves with these institutes for the
quality of graduates they produce every year,” it
The committee’s recommendation has come at a time
when the Centre has already approved the proposal of
11 states including Karnataka, Kerala, Gujarat and
Madhya Pradesh for setting up of these institutes.
Academic session for 2013-14 has begun at IIITs at
Kota, Chittoor, Guwahati and Vadodara for
undergraduate programmes as well as at Tiruchapalli
for postgraduate programmes.
The Parliamentary Standing Committee on Human
Resource Development found many holes in the proposed
legislation of the ministry and suggested it to make
The cost of each IIIT would be Rs 128 crore and the
panel apprehended that the IIITs would be
purely private entity right from day one given the
provisions in the legislation.
The Lok Sabha had, in early October this year,
referred the Indian Institutes of Information
Technology Bill, 2013 to the Parliamentary Standing
Committee on Human Resource Development for further
Assocham supports the objective of the bill to bring
in public-private partnership to scale up training
facilities for quality human resource development in
the field of IT.
NASSCOM has set a goal of achieving USD 50 billion (Rs
3,000 billion) in revenue from the BPO sector by
2020, an ambitious target for a segment that earned
USD 18 billion (Rs 1,100 billion) till March 2013.
This is bound to lead to an increase in those
employed in the IT and ITeS sector.
Assocham strongly believes that the PPP model will
empower IIITs to produce quality manpower for
decades to come.
At present, there are four IIITs funded by the
central government. These are at Gwalior, Allahabad,
Jabalpur and Kancheepuram and are currently
categorised as deemed universities.
The plan is to establish one IIIT in every state,
the sources said.