In a "first-of-its-kind" arrangement, higher educational institutions, namely, the Indian Institute of Technology (IIT) Madras, Indian Institute of Management (IIM) Udaipur, and Indian Institute of Information Technology (IIIT) Nagpur, will soon have hostel buildings constructed by private companies on their campuses.
According to a Careers360 report, the hostels will be built as public-private partnerships (PPP). It further informed that the fee structure is to be set by the institute, but will be revised on a year-to-year basis, with gradual increments of 4%. The amount will be collected by the private company.
The project will be executed on the "design, build, finance, operate and transfer" (DBFOT) basis.
The record of a meeting of the Public-Private Participation Appraisal Committee (PPAAC) functioning under the Ministry of Finance's Department of Economic Affairs stated that these private parties can also generate revenues in other ways, such as in the case of IIT Madras, they can operate cafeterias, vending machines, cleaning rooms, and sports facilities on request, reported Careers360
In IIIT Nagpur, they can earn interest on deposits made for electricity, water and mess charges, canteen facilities, and lease rentals from utility shops.
The public-private partnership (PPP) model has met with success in many fields including telecom, airports, seaports, and metro rail. It usually considers projects valued at over Rs 250 crore. This will be the first time the PPP model will be executed in social infrastructure.
According to Financial Express, the three recently approved project proposals vary in the nature of their agreements.
1) The IIM Udaipur hostel will accommodate postgraduates (PG), PhD candidates, and executives. The proposed fees for IIT Madras will be based on the House Rent Allowance (HRA) currently provided to PhD candidates and project staff.
2) The IIT Madras facilities are intended for PhD candidates and project staff.
3) In contrast, the IIIT Nagpur hostel will primarily serve undergraduates (UGs). The IIIT Nagpur facility will offer double occupancy, while the others are designed for single occupancy.