Private Equity in Higher Education Sector in India- Need of the Hour!

Abstract

Setting up of an educational institution is not easy and requires a lot of regulatory formalities to be completed before opening and during its operations. If it is shut down within initial phase it is painful as well as legally difficult to close it, especially in India. It has been observed that a significant number of academic institutions of technical higher education have been shut down by the promoters due to lack of financial viability, lack of knowledge of about the business, poor management, and other social factors. The present study is an attempt to find out the reasons of mass failure of many technical higher education institutions and to suggest a unique financing model in order to ensure the quality of education and long-term benefit for the promoters by maintaining financial discipline.