India should invest more in higher education: FM

Manipal, Sep 6: Union Finance Minister P Chidambaram today underlined the need for investing more financial and human resources in higher education for the country to emerge a world leader in the area.

Speaking after inaugurating the University building (Manipal Edu) of Manipal Academy of Higher Education (MAHE), a deemed varsity here, he said as the state agencies had their own limitations, non-state agencies should take the lead with larger responsibility, leaving states to concentrate on primary education.

He said financial constraints was the main problem faced today by both service providers and service receivers in the field of higher education and it need to be eased. The service providers deserve support from philanthropists and its alumni.

Mr Chidambaram said keeping in mind the financial constraints of service receivers, especially those opting for higher education, the Congress-led UPA government at the Centre had emphasised the need for more credit finance to students going for professional studies through banks without any security or collateral security.

The government through banks had disbursed loans to the tune of Rs 10,050 crore by March 2006, adding Rs 7000 crore to the earlier total credit of Rs 3,000 crore, he informed.

The banks have now realised that the credit to higher education was a profitable portfolio, he added.

UNI