Health and education may be the two sectors where the biggest chuck of the government's budget goes, but it is the private sector-led investment in the last two decades that made these sectors competitive. The likes of Umesh Shrestha and Suresh Raj Sharma, among others, led the private sector to education.Be it secondary-level or technical education like MBBS or engineering, private sector players not only made investments, but also brought quality and professionalism.
Going through the history of the private sector education, there was a trend of opening schools under a trust after the political change in 1951. Education institutions such as Bhanubhakta Memorial, St Xavier's, St Mary's, Siddhartha Banasthali, Anandakuti Bidyapeeth and Amar Adarsa were opened.
But the Panchayati government in 1972 barred private sector investment in education, saying that education was the state's responsibility. Then again in 1982, the government opened doors for private sector investment in education. This resulted in the opening of private schools like GEMS, VS Niketan and Little Angels.
After the political change of 1990, the private sector found new energy to invest in the sector. Now, there are over 9,000 private schools, about 1,000 private +2 colleges and 300 colleges offering higher education. There are about two dozen engineering and medical colleges each. There have been huge investments in education over the years. According to an estimate, around Rs 50 billion has been invested in the private sector education institutions.
"The sector has been seeing investment of Rs 5 billion every year over the last decade," said Umesh Shrestha, president of Higher Secondary School Association of Nepal (HISSAN). "It needs about Rs 2 billion to open a medical college," said Shrestha. "Despite the abundant investment in education by the government, the state investment is inadequate to incorporate all students."
The rise of private sector investment in education itself is an interesting story. Several groups of investors (educationist and small-time businessmen) came together to set up +2 colleges. Bikram Rai, senior vice-president of HISAN, terms this a cooperative model. "It needs at least Rs 100 million to Rs 15,000 million to open a good +2 college," said Rai.
Corporate investment in the education sector is relatively new in Nepal. Established business houses' entry was seen only after 2000. Now, every leading business houses are keen to enter into the education sector. Chaudhary Group and Kedia Group have already forayed into the sector. Chaudhary Group entered this sector through its tie-up with India's Manipal Group and acquired the then Campaign collage.
"They, however, failed to live up to peoples' expectation compared to schools and colleges opened by those who dedicated their life to education," said HISAN President Shrestha.
Going through the history of the private sector education, there was a trend of opening schools under a trust after the political change in 1951. Education institutions such as Bhanubhakta Memorial, St Xavier's, St Mary's, Siddhartha Banasthali, Anandakuti Bidyapeeth and Amar Adarsa were opened.
After the political change of 1990, the private sector found new energy to invest in the sector. Now, there are over 9,000 private schools, about 1,000 private +2 colleges and 300 colleges offering higher education. There are about two dozen engineering and medical colleges each. There have been huge investments in education over the years. According to an estimate, around Rs 50 billion has been invested in the private sector education institutions.
"The sector has been seeing investment of Rs 5 billion every year over the last decade," said Umesh Shrestha, president of Higher Secondary School Association of Nepal (HISSAN). "It needs about Rs 2 billion to open a medical college," said Shrestha. "Despite the abundant investment in education by the government, the state investment is inadequate to incorporate all students."
The rise of private sector investment in education itself is an interesting story. Several groups of investors (educationist and small-time businessmen) came together to set up +2 colleges. Bikram Rai, senior vice-president of HISAN, terms this a cooperative model. "It needs at least Rs 100 million to Rs 15,000 million to open a good +2 college," said Rai.
Corporate investment in the education sector is relatively new in Nepal. Established business houses' entry was seen only after 2000. Now, every leading business houses are keen to enter into the education sector. Chaudhary Group and Kedia Group have already forayed into the sector. Chaudhary Group entered this sector through its tie-up with India's Manipal Group and acquired the then Campaign collage.
"They, however, failed to live up to peoples' expectation compared to schools and colleges opened by those who dedicated their life to education," said HISAN President Shrestha.
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