Few tech, management colleges to shut down

According to a research report by CRISIL, it is expected that the large number of management and engineering colleges will shut down. It may be a possibility that these institutes will merge with the better ones to run their operations. The possible cause for the shutting down of these institutes is low occupancy of seats and inferior quality of education.

This report has revealed that about one third of seats in Engineering and Business Schools are lying vacant. It leads to the cost over run situation. As a result, some of the institutes have to face closure or some have to change their ownership over the next few years.

CRISIL Research estimates that the average occupancy rate declined in 2011-12 to around 67 per cent for engineering colleges and to about 65 per cent for business schools. The number of seats at AICTE-approved business schools has quadrupled to 3.52 lakh while that for engineering colleges trebled to 14.85 lakh in the time frame of 2006-07 to 2011-12.

Occupancy levels are under immense pressure due to increase in the number of seats across colleges, increasing awareness amongst students regarding the quality of education imparted by colleges, shortage of skilled faculty, and absence of industry link-ups. Ajay Srinivasan, head of industry research at CRISIL Research said that low occupancy rates has made it difficult for many lower-rung colleges to sustain operations. (Read more)

Various states are big suppliers of engineering seats in India. Only 6 states- Andhra Pradesh, Uttar Pradesh, Tamil Nadu, Maharashtra, Karnataka and Madhya Pradesh accounts for about 65% of engineering seats in India. Rest Tier-4 B-schools supply 1/3rd of total seats.

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