Students won’t have to bear RTE cost, says Sibal

April 16, 2012

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New Delhi, April 16: The government has sought to assure parents that the Supreme Court’s verdict making free education to 25 per cent children from weaker sections mandatory in private schools will not prompt the school managements to increase other students’ fee in order to shift the burden.

“I do not think that will happen. I think there would be ways and means to raise resources. We will be working with schools in order to do that. We will try our level best. Nobody will be penalised for this,” Human Resource Development (HRD) Minister Kapil Sibal told a news channel on Sunday, when asked if the burden of providing free education to the 25 per cent would be passed on to other students.

Asked who will pay the tab for the 25 per cent reservation, Sibal said schools which had not taken any benefit from the government would be compensated by the government under the Right to Education (RTE) Act.

"We have made the calculation," Sibal said. The government would incllude the provision of school uniforms and textbooks in the twelfth Five Year Plan to those students admitted in 25 per cent quota under the Act.

As per the Act, schools providing free and compulsory elementary education would be reimbursed expenditure so incurred on the students from weaker and disadvantaged sections to the extent of per-child-expenditure incurred by the state concerned, or the actual amount charged from the child, whichever is less.

“The amount of disbursement to schools against the expenditure incurred on students from weaker sections by them would differ as it will be decided on the basis of the RTE rule formulated by each of the state the implementation of the Act,” a senior official of the HRD Ministry told Deccan Herald.

According to a rough estimate, the expenditure to be incurred per child would vary from Rs 6,000 to Rs 17,000. In Delhi, the government incurs an expenditure of Rs 14,300 per annum per child, sources in the ministry said.

Sibal suggested that the schools could raise resources from their funds if they had their resources in surplus. They could also tap the funds provided by corporates under their corporate social responsibility obligations.

"You have many corporates who are committed for corporate social responsibilities. Schools can actually tap their resources so that there is no burden on parents," he said.

Free education

He underlined that Rs 2.31 lakh crore had been earmarked for implementing provisions of the Right To Education Act Act in the eleventh Plan period. Providing free education to all the children was not possible for the government and therefore, private schools had been made responsible along with those run by government to achieve the mission.

“The gap between the rich and the poor is enormous. We must move forward and we must have an inclusive society in which all must participate. After years of deliberations, we thought we must try and integrate disadvantaged communities into the school. Social integration is the motive behind the move," he said.

The RTE Act makes free and compulsory education to children between 6 to 14 years of Class I to VIII. When asked what would happen to those students to be admitted under 25 per cent quota after class VIII, Sibal said there could be a rethinking on the issue after eight years.

"After eight years, the whole situation will change. There will be a government at that time. Maybe there will be a rethinking on it."

To a question why boarding schools were kept out of the purview of the Act, he said they had a different ecosystem where classes, generally, start from Class VI onwards.

"As and when we feel they should come under purview of the act, we will think of it," he said.

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News Network
March 21,2020

Mar 21: India’s economy, already in the grip of a slowdown, is in for more pain after Prime Minister Narendra Modi appealed to citizens to stay at and work from home to curb the coronavirus outbreak.

The services sector, which accounts for about 55% of India’s gross domestic product, is poised to be the worst hit after Modi, in a late evening address on Thursday, urged citizens to go on a self-imposed curfew for a day and private companies to allow employees to work from home for longer. In the country’s vast informal sector, social-distancing measures could mean a dent to productivity and consumption because of job or pay losses.

“The impact of a partial lock-down or social distancing will be significant,” said Rahul Bajoria, a senior economist at Barclays Plc in Mumbai. “If there’s a widespread community outbreak, GDP could fall as low as 3.5% in the year starting April 1.”

Shrinking output may limit growth in an economy that’s already set to expand at an 11-year low of 5% in the current year to March 31. Before the virus outbreak, India had forecast growth to recover to 6%-6.5% in the next fiscal year. S&P Global Ratings and Fitch Ratings have already slashed their growth forecast by 50 basis points.

“The current social-distancing measures will severely impact airlines, hotels, malls, multiplexes, restaurants and retailers,” according to analysts at Crisil Ltd., the local unit of S&P Global. “Lower footfalls and occupancies, decline in business volume and sub-optimal operating efficiencies will impact cash flows of companies in these sectors,” wrote the analysts led by Chief Economist Dharmakirti Joshi.

The government will try to announce a relief package for virus-affected sectors as early as possible, Finance Minister Nirmala Sitharaman said Friday.

In a televised address, Modi advised all citizens to stay at home for a day on March 22, as he sought to stem the spread of the coronavirus -- cases of which are relatively low in India at about 200, compared with more than 200,000 infected people globally. His government also barred incoming flights for a week from that day, joining a growing list of countries effectively sealing their borders.

What Bloomberg’s Economists Say

We had only earlier this week lowered our GDP outlook to consider the direct impact of the local outbreak as confirmed virus cases exceeded 100 as of March 15 and the federal and state governments announced social distancing measures that have already started to crimp economic activity. We are now revising down our GDP estimate for 4Q fiscal 2020 to 3.3%, from our 3.5%.

-- Abhishek Gupta, India economist

For more, click here

“Consumption being the biggest component of GDP, a lock-down is bound to have a big impact on the economy,” said Devendra Kumar Pant, chief economist at India Ratings and Research, the local unit of Fitch. “Modeling uncertainty in any system will be very difficult, but one can say the slowdown could deepen or prolong further.”

Work From Home

While companies, including billionaire Mukesh Ambani-controlled Reliance Industries Ltd., are asking employees to work from home, the option isn’t feasible in India’s vast informal sector.

“The option to work remotely simply won’t exist for most,” said Shilan Shah, an economist with Capital Economics Pte. in Singapore.

As many households don’t have savings buffers, the government would probably have to back this up with large-scale cash handouts that reach the poorest, he said.

Work from home is posing implementation challenges for the manufacturing sector where workers are required to be physically present at the production sites. The services sector, such as banking and information technology, also needs employees to be present in offices as confidential data is used, according to industry group Federation of Indian Chambers of Commerce and Industry.

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News Network
April 17,2020

New Delhi, Apr 17: A total of 3,336 Indians tested positive for coronavirus in 53 countries while 25 others died of the infection, government sources said on Thursday.

They said the Indians stranded abroad will have to be patient as the government is not evacuating them as part of a larger policy decision to check the spread of the coronavirus in the country.

"They need to be patient and stay where they are. Our missions have been told to extend all possible help to the stranded Indians," said a source.

According to the sources, evacuation of around 35,000 foreign nationals from 48 countries has been facilitated so far from India.

The sources said the majority of Indians who tested positive for the coronavirus infection are living in the Gulf region. A sizeable number of Indians staying in France and the US have also tested positive.

They said that Indian missions in the Gulf region have been told to extend all possible assistance to the Indians in distress.

Around eight million Indians are living in the Gulf countries and there has been growing anxiety among them over their livelihood in view of the pandemic as it has majorly impacted the oil-driven economy of the region.

Almost all Gulf countries have taken a series of drastic measures including imposing total lockdown, travel restrictions and even closing borders to stem the spread of the coronavirus infection.

The United Arab Emirates has already warned of possible action against countries refusing to allow their citizens to return.

Around 3.3 million Indians are living in the UAE and they constitute roughly 30 per cent of the country's population. Among the Indian states, Kerala is the most represented followed by Tamil Nadu and Andhra Pradesh.

A large number of Indians are working in the construction sector in Qatar which is hosting the FIFA World Cup in 2022.

As a matter of policy, India has decided not to bring back the stranded Indians from abroad till the nationwide lockdown ends.

The issue of Indians in Gulf region figured prominently during Prime Minister Narendra Modi's video conference with heads of Indian missions abroad on March 30.

Welfare of Indians in the Gulf was the major focus area in the discussions Modi had with leaders of countries in the region over the last few weeks, officials said.

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News Network
April 5,2020

Thiruvananthapuram, Apr 5: Eight more COVID-19 positive cases were reported from Kerala on Sunday, four among whom attended the Tablighi Jamat congregation in Delhi and six people were cured, Health Minister K K Shailaja said.

With this, the total number of affected people under treatment in the state has gone up to 256, she said.

"Out of the eight cases, five are from Kozhikode, and one each from Pathanamthitta, Kannur and Kasaragod districts.

In the case of Kozhikode, four out of the five returned from Nizammuddin meet and one from Dubai.

As of date, 10 people who had returned from Nizammuddin in Delhi have been tested positive," the minister said in a release

A total of 314 cases have been reported from Kerala so far and 56 people have been cured, she said

"We have sent 10,221 samples for testing," she said.

A total of 1.58 lakh people are under observation in the state, out of which 776 are in isolation wards in hospitals.

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