

KOCHI: The state government’s decision to explore private investment, public-private partnerships (PPPs) and hybrid financing models for universities has triggered concerns that the newly constituted University Finance Commission could pave the way for privatisation of higher education in the state. The move comes as the government is redrafting the Private University Bill.
Education experts have questioned the commission’s terms of reference, particularly the proposal to examine the conversion of aided institutions into private universities. They fear the exercise could eventually reduce government funding, increase student fees and undermine affordable higher education.
Rajan Varughese, a former member of the Kerala State Higher Education Council (KSHEC), said assessing university finances was necessary, but the commission’s mandate went beyond strengthening public investment.
“By expressly introducing PPPs, private investment, hybrid financing and the prospective conversion of aided institutions into private universities, the order creates a policy that paves the way for restructuring higher education around greater private participation,” Rajan said. The absence of safeguards ensuring that alternative financing supplements rather than replaces public funding was particularly worrying, he added.
Amruth G Kumar, professor at the Central University of Kerala, alleged that the government had deliberately opened the door to privatisation through a legitimate commission.
“The main intention seems to be finding avenues for reducing government funding,” Amruth said. He also questioned the mandate to identify priority areas for fiscal investment without explicitly addressing the protection and improvement of existing institutions.
Former APJ Abdul Kalam Technological University interim vice-chancellor K Sivaprasad questioned the proposal to convert aided institutions into private universities while simultaneously seeking ways to prevent students from leaving the state.
“Won’t that go against the very aim of preventing students’ exodus?” Sivaprasad asked. He also questioned the commission’s financial expertise, pointing out that it had no chartered accountants.
However, commission chairman B A Prakash dismissed the allegations as baseless propaganda. “The commission is not a precursor to privatisation of state universities,” Prakash asserted.
He said its primary mandate was to assess the financial health of 10 universities, curb wasteful expenditure and identify innovative ways to mobilise resources. He recalled that an expert committee headed by him in 2012 had found five state universities in dire financial condition and recommended establishing a finance commission.
“The basic objective is to examine university finances, make them stable and take steps to sustain them,” Prakash said, accusing vested political interests of misrepresenting the initiative.