On July 23, 2024, Finance Minister Nirmala Sitharaman in the Union Budget announced a major overhaul of funding allocations for higher education. The budget for the University Grants Commission was drastically reduced from rs6,809 crore to Rs2,900 crore, signalling a paradigm shift that may lead to the establishment of the Higher Education Commission of India (HECI), as envisioned in the National Education Policy (NEP) 2020.
UGC funding slashed: A 61 per cent reduction
The University Grants Commission (UGC), the primary regulatory body for higher education in India, has experienced a significant budget cut, with its funding reduced by nearly 61 per cent from Rs 6,409 crore to Rs 2,500 crore. This reduction is expected to impact various higher education initiatives including research projects, scholarships and infrastructural development under UGC’s jurisdiction. In contrast, Central universities have received a substantial increase in funding with allocations rising by over Rs 4,000 crore, bringing the total to Rs15,928 crore for the fiscal year 2024-25. Additionally, student aid for higher education has increased by Rs493 crore and the allocation for research and innovation has risen by Rs162 crore.
Vision of NEP 2020: HECI as a new regulatory paradigm
The NEP 2020 laid the foundation for a comprehensive reform of India’s education system advocating for the creation of the HECI. During a webinar on regulatory reforms under the Shikshak Parv initiative by the Ministry of Education on September 22, 2020, Dr (Mrs) Pankaj Mittal emphasised that the proposed regulatory reforms would pave the way for essential changes in teaching and learning.
HECI is envisioned to have four verticals:
These verticals aim to establish a transparent regulatory mechanism that promotes quality, innovation, and autonomy in higher education.
Draft Higher Education Commission of India Bill, 2018
The journey towards establishing HECI began in 2018 with the introduction of the Draft Higher Education Commission of India (Repeal of University Grants Commission Act) Bill. Although the bill was never finalised, it proposed significant changes to the higher education regulatory landscape. The bill aimed to repeal the University Grants Commission Act, 1956 and establish HECI as the apex body to maintain academic standards, specify learning outcomes and set eligibility criteria for vice-chancellors. Moreover, it granted HECI the authority to close institutions failing to meet minimum standards and revoke permissions on specified grounds.
An advisory council, chaired by the Union Minister of Human Resource Development, was proposed to ensure coordination and standard determination between the Centre and states.
Reworking the HECI Bill
In August 2022, the government announced its intention to rework the draft HECI Bill, aligning it with NEP 2020. The new draft emphasised the need to create a single regulatory body for college and university-level education, transcending disciplines. Education Minister Dharmendra Pradhan confirmed in an interview on October 11, 2023 that the HECI Bill would soon be introduced in Parliament. The proposed HECI would focus on three major roles: regulation, accreditation and setting professional standards. Funding would remain under the administrative ministry’s autonomy, distinct from HECI’s mandate.
Challenges and criticisms of the UGC
The UGC has faced criticism over the years for its perceived inefficiencies and inability to adapt to the evolving complexities of higher education. In March 2015, a committee led by former UGC chairperson Hari Gautam recommended the scrapping of the UGC citing its failure to fulfill its mandate. The committee highlighted issues such as favouritism, lack of coordination and inadequate regulatory mechanisms which hindered the UGC’s effectiveness.
Implications of HECI’s establishment
The potential establishment of HECI marks a significant shift in India’s higher education landscape. By separating regulatory functions from funding responsibilities, HECI aims to create a more transparent, accountable and efficient system. The focus on academic governance, standard setting and accreditation aligns with global best practices fostering an environment conducive to innovation and excellence.
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Union Budget: UGC funding takes a hit as India looks to the future with HECI
