Ahmedabad: The Gujarat govt is considering a proposal to reduce the mandatory endowment fund required for setting up new private universities as part of its ‘Ease of Doing Business’ initiative, a move that has triggered concern among educationists who fear it could compromise the quality of higher education in the state.Under the Gujarat Private University Rules, 2020, institutions seeking to establish a private university are required to maintain a fixed endowment fund based on their projected investment during the first five years. Currently, institutions investing less than Rs 10 crore must maintain an endowment fund of Rs 1 crore. Those proposing investments between Rs 10 crore and Rs 50 crore are required to deposit Rs 3 crore, while institutions investing more than Rs 50 crore must maintain an endowment fund of Rs 5 crore.The proposal to lower these requirements was discussed at a recent meeting of the higher education department officials. Since the endowment provisions are governed by policy, any relaxation would require amendments to the Gujarat Private University Rules, 2020.To examine the proposal, the state govt has constituted an 11-member committee comprising vice-chancellors, registrars and academic heads from several universities, including Gujarat University. The panel has been tasked with reviewing the existing provisions and recommending suitable revisions to the endowment norms.Based on the committee’s recommendations, the govt is expected to finalise and notify revised endowment fund requirements for new private universities.The proposal, however, has drawn criticism from education experts, who argue that the state should be strengthening, rather than relaxing, the financial eligibility criteria. According to them, a higher endowment requirement ensures that only financially capable and serious institutions enter the higher education sector.They caution that lowering the threshold could encourage the mushrooming of substandard universities, ultimately affecting academic standards and the long-term credibility of higher education in Gujarat.
