The Indian Economy Blog

May 20, 2006

Delhi Removes Cap on Licence-permits for Opening Schools

Filed under: Business,Education,Human Capital,Regulatory reforms — Naveen @ 7:34 am

For long Delhi had an “Essentiality Certificate” (EC) requirement for opening a school. Moreover, the number of ECs were limited depending upon school-eligible population in each district of Delhi. The ostensible motive was to regulate competition and allow only schools which were deemed “essential”. So that existing schools did not suffer the consequences of the opening of new schools in the particular locality! Their planning note for 2002-2007 for licences (ECs) to schools looked scarily like a 1980s Soviet factory production chart. Not surprisingly, the EC requirement was devastating in its stifling of entry of new schools. Till now. I hear that the caps on the number of EC requirement has been finally removed.

Read about it in Now, Delhi Govt clears way for more schools. Hat-tip from Parth J Shah.

Hopefully other cities will follow it soon.

Most problems on the education scenario often stem from a depressed supply. Satya articulated it very well in his post Solution to the reservation issue? It’s the supply, stupid!

A supply-response wont solve all problems but will still take us many steps ahead to create a vibrant market for schooling. I am now keeping my fingers crossed for deregulation of the private university sector which is still under heavy government controls. Read Not all global varsities to enter India.

1 Comment »

  1. It is quite incomprehensible that we should have had and continue to have policies that perpetuate supply constraints in the education sector. If there is one thing this nation needs, it is MASSIVE investment in education- especially school education. Anything that gets in the way of that needs to go.. NOW!

    Comment by little Ram — May 21, 2006 @ 10:52 am

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