Private schools want to take corporate money under CSR. Is it a good idea?

Profit, not charity

But all private schools, even those run by trusts that market themselves as "charitable", charge fees. In fact, most private schools in India are known for overcharging fees, as Prof Madhu Prasad, formerly of the Delhi University and now a member of the All India Forum for Right To Education, pointed out.

"If they charge fees, it is not charity or philanthropy. They are providing education in return for a financial consideration. If private schools want corporate funding, they can directly sell shares to the corporates. Companies are free to invest in private entities such as private-unaided schools. Why should they go through the CSR route?" Prasad asked.

"CSR is meant to contribute towards the upliftment of disadvantaged sections of society. It is a way for corporates to go beyond profits and donate to causes that result in social good and create common facilities for people who are deprived. CSR is not intended for private enterprises."

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Under the Companies Act of 2013, every private and public company with a net worth of Rs 500 crore or more, or a net profit of Rs 500 crore or more, or a turnover Rs 1,000 crore or more is required to spend at least 2% of its average net profit for the preceding three fiscals on CSR initiatives every year.

As per the law, CSR initiatives include those that help eradicate hunger and poverty, promote education and healthcare, promote gender equality, reduce inequalities faced by socially and economically marginalised groups, and contribute towards environmental sustainability.

"CSR is intended for spending on welfare areas for which the government claims to lack funds and requires assistance. There are enough public domains that the government is withdrawing from. CSR should contribute to government schools, which are facing a major crisis of funds across the country. Private schools do not lack funds, and certainly do not count as social work," said Prasad.

Exorbitant fees

While government schools are in a bad shape for lack of funds, exorbitant fees charged by private unaided schools has long been a contentious issue. Running private schools is a big and ever-burgeoning business in the country. So much so that last March, thousands of parents from across 18 states gathered in Delhi under the banner of All India Parents Association and demanded a central legislation to regulate the fees of private schools.

In 2011, the Delhi High Court had appointed a three-member committee led by Justice Anil Dev Singh, former judge of the Rajasthan HC, to review the fees of private unaided schools in the national capital.

In the five years since, the committee has released 10 interim reports after scrutinising the records of 1,092 schools. It has asked 535 private unaided schools in Delhi to refund up to Rs 300 crore charged in excess fees over the years. These schools had been found to be overcharging on the pretext of the Sixth Pay Commission without actually implementing the recommendations.

There is no dearth of reports of parents in other states as well protesting against excessive and rising fees charged by unaided schools.

It remains to be seen whether the HRD ministry accepts the recommendation of the Kerala CBSE School Management Association. But on the merit of arguments, the idea of letting unaided private schools use corporate funds under the guise of CSR appears completely unjustified.

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