Challenges for engineering colleges in Tamil Nadu

The Hindu (dated July 28, 2003) reported on the challenges faced by the engineering colleges in Tamil Nadu as a result of decreasing demand for engineering education.

• 21,505 seats remained vacant out of a total of 47,417 seats in the state, in comparison to 12,000 seats being vacant in 2002 and 9000 seats being vacant in 2001 - a steep fall in demand.
  
• in 55 colleges, a whopping 85% of the seats remained vacant and one college in Tuticorin that received affiliation recently found no takers for even a single seat!
  
• Colleges are now offering much lower fees than that fixed by the Government to attract students and yet there aren't many takers
  
• A chairman of a college is quoted as saying that it would be virtually impossible for the colleges to remain economically viable if 75 per cent of the seats remained vacant

This raises some serious structural issues. - what happens if a college is not economically viable?

In the case of businesses, consolidation through mergers and acquisitions provides an effective way for increasing the overall efficiency of use of resources (capital, personnel and physical assets) in any sector. For e.g. if a company is facing tough times for various reasons (lack of access to capital, mismanagement or poor management etc., fall in market demand), either the whole company or its assets can get bought over by another company which hopes to turn things around, thereby providing an exit for the original investors.

But colleges (and schools as well) are structured as trusts and not as companies. So if Trust A owns a college that is in financial trouble and Trust B is interested in acquiring the assets of Trust A, it is possible in principle for Trust B to pay a financial consideration to Ttrust A to acquire the assets. But the money paid to Trust A can't go to the trustees. It will have to remain locked in the trust. This means that consolidation through mergers and acqusitions is very unlikely since the trustees of Trust A do not stand to benefit financially by transferring the assets to Trust B and so have no incentive to agree to any transfer of assets.

This means that the entire capital invested in Trust A originally will go down the drain., unless the trustees are willing to cede control of the trust to Trust B, on their own voilition, without expecting anyting in return.
In some cases, the Govt. can step in to take over Trust A if it is being mismanaged and the Govt. can then hand over the running of the Ttrust A to any other trust.

So what will become of the various engineering colleges in Tamil Nadu that are facing tough times with the fall in demand for engineering education in Tamil Nadu? Will they all just have to wither away? What will happen to the assets that they have (land, buildings and other infrastructure)? I'm sure these physical assets will end up being put to some use, but is there a clean legal way for consolidation to happen?

Comments

[GOKAK.G.D.]

HELLO SIR,
THIS IS NOT A COMMENT THIS IS A REQUEST WELL MAY I KNOW THE DIFF PAPER PRESENTATION CONTESTS GOING ON IN TAMIL NADU OVER ALL
AS I AM A MTECH STUDENT
PLZ INFOR MEABAOUT ONLYTHOSE IN WHICH THE PG STUENTS CAN PARTICEPATE
PLS SEND THE INFORMATION TO DR BABASAHEB AMBEDKAR TECH UNIVERSITY
LONERE 402103 RAIGAD MAHARASHTRA
YOURS FAITHFULLY
GURURAJ.GOKAK

[ராஜேஷ்]

THOZHILNUTPAM.COM/தொழில்நுட்பம்
The First Engineering Resource in Tamil

[ராஜேஷ்]

THOZHILNUTPAM.COM/தொழில்நுட்பம்
The First Engineering Resource in Tamil

[gaurav jain]

I want to know that why so many students from merit are taken in the colleges while the no. of students coming via entrance exams is less.
Will it not effect the performance of colleges.
Also sir I am a UG student in first year. I want to know about various paper presentations and other contests taking place in Engeering colleges of tamil nadu and nearby regions.
Kindly update my knowledge with latest info.
You can send me info via mail or on address given below:
Gaurav Jain
MIG hostel-1
Sastra University
Tirumalaisamudram
Thanjavur-613402
TAMIL NADU
Thanking You
Your's faithfully
Gaurav Jain

[prajapati Mitesh]

Respected sir,
I have complited diploma in electrical engineering. I want to get admission in Electronics@commnication engineering direct second year in Bharath institute of higher e.ducation& researce channai(Deemed univesity). I want to know that this university is apprived by Aicte or not.Is it also approved by UGC or not? this corse is valid or not in India.What is the eligiblity requried to get admission in deemed univesity?On website this univesity name is Bharath institute of science&technology Is it true or not?On the college buliding college name is Bharath engineering collegeIs it true or not?so univesity name is not same. so I am very confused. Please give meinformation soon. thanking you.

[prajapati Mitesh]

Respected sir,
Please give me the name, address @phone number of Deemed Universities for B.E. Engineering with engineering branch & seats for diploma to degree engineering & what is the eligiblity requried for diploma to degree in Tamilnadu.Is it necessary that Deemed University is approved by Aicte or not?Or it is enough that Deemed Univesity is approved by UGC.Engineering certificate which is given by Deemed university is valid for job?
Please give me answer soon.
Thanking you.

[Gaurav Jain]

Sir, I am a UG student ,studying in first year, EIE, in Shanmugha College, Thanjavur.
I want to know about various paper presentations taking place in Tamil Nadu.
Kindly update me with latest information.I will be highly greatful to you.
Thanking You
Gaurav Jain

[JAIBY JOSE]

Please send me the list of Engineering Colleges in Tamil Nadu approved by AICTE.

[JAIBY JOSE]

Please send the list of Engineering Colleges in Tamil Nadu approved by AICTE. Please mention the address or email address of colleges.

[Anuradha]

Hello sir,
I need the list of engeering colleges(DEEMED UNIVERSITY) approved by AICTE in Tamil Nadu. I too need the Fees structure of various coursed available.

[LAO MANNA]

RESPECTED SIR,
I HAD COMPLETED MY 10+2 EXAM FROM CHHATTISGARH WITH 75% MARKS.I WANT TO KNOW THAT "AS I HAD NOT APPEARED FOR THE STATE LEVEL ENGINEERING EXAM OF YOURS STATE, CAN I CAN TAKE ADMISSION IN A DEEMED UNIVERSITY FOR B-TECH COURSE & WHAT IS THE ADMISSION PROCEDURE FOR THE ENTRY IN THE COLLEGE, AND ALSO THE FEE STRUCTURE?"
PLEASE SEND ME THE LIST OF ENGINEERING COLLEGES (DEEMED UNIVERSITY)WITH THERE FEE STRUCTURE AS SOON AS POSSIBLE SO THAT I CAN TAKE A QUICK DECISION.
DATE-- 11/05/2004

[arjun]

RESPECTED SIR,
I HAD COMPLETED MY 10+2 EXAM FROM rajasthan. I WANT TO KNOW THAT "AS I HAD NOT APPEARED FOR THE STATE LEVEL ENGINEERING EXAM OF YOURS STATE, CAN I CAN TAKE ADMISSION IN A DEEMED UNIVERSITY FOR B-TECH COURSE & WHAT IS THE ADMISSION PROCEDURE FOR THE ENTRY IN THE COLLEGE, AND ALSO THE FEE STRUCTURE?"
PLEASE SEND ME THE LIST OF ENGINEERING COLLEGES (DEEMED UNIVERSITY)WITH THERE FEE STRUCTURE AS SOON AS POSSIBLE SO THAT I CAN TAKE A QUICK DECISION

[vijayalakshmi]

Sir,
May I know the last year cut off marks for Medical coleege admission in Tamil nadu for backward class.
thank you,
vijyalakshmi

[srijith]

sir,
I would like to know whether MBA offered by sree saraswathy thyagaraja college ,pollachi-coimbatore[dist],TN is approved by AICTE.

[Syed Munawar Ali]

Sir,
I am consultant, very much committed towards the betterment of the students enrolled in self-financing engineering colleges, Tamil Nadu. You know very well about the plight of most of these colleges! Where can you contact you for a serious discussion regarding the concerned topic? Pls send me your postal address and tel no.
Thank You.
Truly yours
Syed Munawar Ali

[Harsh Sundani]

Respected sir,
Please give me the name, address @phone number of Deemed Universities for B.E. Engineering degree engineering & what is the eligiblity requried for the degree.

[sabarmathi]

Sir,
I am a second year engineering student(ECE), studying in an engineering college located at coimbatore.I want to know informations about various paper presentations taking place in colleges at tamil nadu. So kindly update me with the informations about pp.
Thanking you.

[santosh]

respected sir/madam,

please send me the list of engineering colleges in Tamilnadu, sorted in order of their performance.

[Premnath]

SIR,
I WANT THE DETIAIL FOR M-TECH COURSE & WHAT IS THE ADMISSION PROCEDURE FOR THE ENTRY IN THE COLLEGE, AND ALSO THE FEE STRUCTURE?"
PLEASE SEND ME THE LIST OF ENGINEERING COLLEGES (DEEMED UNIVERSITY)AND ALSO OTHER INSTITUTES WITH THERE FEE STRUCTURE AS SOON AS POSSIBLE SO THAT I CAN TAKE A QUICK DECISION

[REETURAJ]

SIR,
I HAVE PASSED CLASS XII. AND SO SIR I WOULD LIKE TO HAVE SOME INFOMATIONS ABOUT THE ENGINEERING COLLEGES IN CHENNAI, UNDER ANNA UNIVERSITY AND ALSO APPROVED BY AICTE. SO, ALSO PLEASE LET ME KNOW WHETHER EVP ENGINEERING COLLEGE OF CHENNAI IS APPROVED BY AICTE.

[REETURAJ]

SIR,
I HAVE PASSED CLASS XII. AND SO SIR I WOULD LIKE TO HAVE SOME INFOMATIONS ABOUT THE ENGINEERING COLLEGES IN CHENNAI, UNDER ANNA UNIVERSITY AND ALSO APPROVED BY AICTE. SO, ALSO PLEASE LET ME KNOW WHETHER EVP ENGINEERING COLLEGE OF CHENNAI IS APPROVED BY AICTE.

[allen nimmy]

RESPECTED SIR
I WOULD LIKE TO KNOW LAST YEAR'S CUT OFF MARRKS FOR MEDICINE AND NURSING

[VIJAY]

i whant the fee structure of m tech programme,and which college are offer this programme

[N S Narayan]

Respected sir,

Please send me the list of deemed Engineering colleges of tamil nadu.
Thanks
Narayan

[R.Sindhuja]

Can you please send me the list of engineering colleges approved by AICTE and also the list of self-financing engineering colleges in chennai.