Setting up of new Indian Institute of Information and Technology (IIITs) under Public Private Partnership (PPP) mode has been strongly disapproved by a Parliamentary panel. It fears that PPP mode might create conflict between the welfare objective of government and profit motive of the industry.
The government proposes to set up 20 new IIITs under the PPP mode in the country but the department related to the Standing Committee on HRD apprehended that given the provisions in the legislation, these institutions would ultimately function as a purely private entity. The committee was of the view that an individual body having a stake on the ownership might give rise to conflict between the government and the industry.
The cost of each IIIT would be Rs 128 crore which would be contributed by the Centre, the state government and the industry in ratio of 50:35:15 percent. The committee further cited the example of state-funded institutes like IITs and NITs which excel despite no industry having a stake in their ownership.
The committee made its observation after examining the Indian Institute of Information Technology Bill, 2013 introduced in the Lok Sabha during the last Budget Session. The Bill seeks to establish 20 new IIITs and declare the existing four into institutes of national importance.