Govt looks to NRIs to fund learning

The government is planning to tap non-resident Indians and people of Indian origin for funds to set up universities across the country.

The government is planning to tap non-resident Indians and people of Indian origin for funds to set up universities across the country. The move will allow flow of foreign funds into Indian higher education and give a fillip to establishment of quality private sector institutions.

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With this aim in view, the government is expected to announce a scheme whereby “one time tax exemption on capital equipment at the time of construction may be granted.” in the Budget, highly placed sources told the Hindustan Times.

However, the government is keen not to provide any other concessions as it is felt that such a move may open the floodgates for requests of similar concessions from other institutions and universities. Several prominent non-resident Indian individuals have evinced interest in set ting up a private university.

To woo NRIs, the government will extend the customs duty exemptions available to public-funded research institutions or a university or an Indian Institute of Technology or Indian Institute of Science, Bangalore, or a regional engineering college.

The exemptions from customs duty are granted on scientific and technical instruments, apparatus and equipment, including computers. Proto-types below Rs. 50,000 cost, insur ance and freight char ges are also exempted from customs duty.

These exemptions from customs duty payments are allowed if the in stitute produces at the time of im port a certificate from the head of the institution certifying that the goods were required for research purposes. The certificate has to be shown at the time of clearance of the goods from the warehouse.