Professional Documents
Culture Documents
Project Concepts and Objectives The actual project, the thinking behind it, it's
design criteria etc have been covered in detail in
the project concept document which is available
for free download from the Nataraja Foundation's
The Indian Primary & Secondary Education Megaproject website www.nataraja.org.in
Over the last 30 years India has spent very little money on building new schools . The focus has instead been on getting quick
results through projects that involved the least possible expenditure. So few new schools were built even though India's
population grew from from approx. 846 million in 1991 to almost 1.15 Billion people in 2009. In the schools that were built,
the quality of infrastructure is very poor. Planning commission data clearly shows that 44 % of schools at the primary level do
not have toilets for instance and 15 % do not have drinking water . Planning Commission data also reveals that nearly 45 % of Creating a lifestyle around the teaching
the SC / ST children drop out of school by class V and by class XIII in excess of 60 % drop out of school. Various studies profession
conducted by government of India as well as foreign agencies are showing that the percentage ( % ) of " Out Of School
Children " is falling but no one is talking about the third rate quality of the schools that the children are being enrolled in and Low cost yet very elegant housing for
the abysymal working conditions of the teachers who teach there. teachers under the programme.
As a result of all this, in 6 - 8 years time , over 100 Million children will exit the school going age group without any This particular house was built at a cost of
employable skills. This is going to create huge social problems in the country. Rs 750 / Sq Ft in 2007 in the Vernacular
Architectural Style.
Obviously something has gone terribly wrong with our entire approach to education and we need a robust strategy to solve
the problems in our education system. Location : Bangalore
Architect : RL Kumar
Therefore ...
Central to the thinking behind this project is the belief that the main reason for the steep decline in the quality of human www.vernarch.com
resources in India has been the neglect of the teaching profession and teachers over the last several decades.
In India today a crane operator with 5 years of experience makes more money than an MA in Economics or a MSC in
Maths or a teacher with a proper BEd degree and with 10 years of teaching experience at the primary school level. This
has warped the economic choices that a fresh graduate makes and has resulted in the least qualified individuals
handling the most important of all the jobs in this country (The teaching of our children and tomorrows citizens ).
This project takes note of the fact that India reached the height of its glory when the teacher was at the head of our society
and therefore seeks to bring back this long lost Indian tradition through an innovative mechanism on a truly massive
scale. The project is focused on providing a sound basic education as it is more important to have a sound education at the
primary and secondary levels for a majority of our people than to spend billions of dollars on higher education and have most
of those people going abroad.
The whole project therefore is designed around the primary & secondary school teacher ( Project is not centered on the
student ) with a view to creating a simple yet elegant lifestyle around the teaching profession so as to attract the
best minds towards a career in teaching and thereby correcting a macro imbalance in our society. While doing this , the project
also reaches more under privileged children than any other past or currently planned programme of the Govt. Of India.
This Excel workbook concentrates on the financials of the project. For a detailed understanding of the various
issues, readers are requested to go through the Project concept document which describes the project is proper
detail.
Project Scale :
The project seeks to build a total of 30,000 New schools (with 600 students per school ) under the Public Private
Partnership ( PPP ) format during the period 2012 - 2023. Each school under the programme will share teaching
resources ( Teachers , Teaching aids etc ) with 14 other village schools in it's surrounding area so that a total of 420,000
additional schools are covered under the programme .
The main problem then is money and since the government does not have adequate conventional resources , Innovative
financing mechanisms needed to be found to finance this large education project. The project has therefore focused on
bringing in innovative ideas on the finance side and we have been able to find innovative ways to raise approximately US $
131.38 Billion as one time Capital expenditure to build the schools and US $ 42.57 Billion as yearly operational expenditure
to run the 30,000 new school system as well as it's huge teacher sharing programme that will reach an additional 108 Million
children in 420,000 assisted schools. As a result , once fully commissioned in 2023, a total of upto 126 Million children will
receive high quality education totally free of cost .
bringing in innovative ideas on the finance side and we have been able to find innovative ways to raise approximately US $
131.38 Billion as one time Capital expenditure to build the schools and US $ 42.57 Billion as yearly operational expenditure
to run the 30,000 new school system as well as it's huge teacher sharing programme that will reach an additional 108 Million
children in 420,000 assisted schools. As a result , once fully commissioned in 2023, a total of upto 126 Million children will
receive high quality education totally free of cost .
Phase IV Possible repeat of total project ( another 30,000 schools ) 2023 – 2029
to cover 4,20,000 additional schools
_____________________________________________________________________________________ Project Schedule To be Extremely
Aggressive
30,000 New Schools to be commissioned by 2023
_____________________________________________________________________________________
Notes :
1. Each Of Bootstrapping stages I & II will consist of 250 Teacher Training Institutes to train 300 teachers
each per year + 60 Centers of Vernacular Archiecture to train 300 Master Masons each year. Bootstrap II
will be a repeat of Bootstrap I
2. It is not possible to execute Phase I of this project faster as India currently does not have enough
trained teachers who possess the necessary capability / sensitivity to train young minds. This problem
will be overcome by 2016 after which project execution velocity will pick up.
3. Phase IV could essentially be a repeat order which will repeat phases I, II and III in half the time. It will
be possible to dramatically crash commissioning schedules due to retained learning within the
project enterprise.
4. Each day school will operate in two shifts to maximize coverage while keeping costs low.
The following are the main economic and environmental features of the project
which seeks to use Traditional yet very elegant Indian Architecture
( where building life is over 100 years ) without any significant maintenance :
2. Project will in addition lead to the planting of around 150 Million trees
all over India between 2012 and 2023.
Prepared By
Ashish Puntambekar
Project Designer , The Nataraja Foundation
(00-91-9867612368)
ashish.puntambekar@gmail.com
Analyst Note :
This model is provided for the information of Educationists, Indian Government Officials , Corporates , Financial
Institutions and NGO's and must be seen in conjunction with the project / business spreadsheets prepared for both
the stand alone day schools and residential schools as well as the optimised chain that comprimises the
megaproject.
The Project has been designed based on Information published by the Indian Planning Comission ( XIth Plan
documents ) as well as other published material on the National Knowledge Commission / Ministry of HRD
websites. Published papers by experts on the Indian Education System have also been studied and means to
overcome the shortcomings pointed out by the experts have been incorporated in the project design.
While these agencies have not been a party to the conception of this project plan, the author would like to thank his
sources for making this plan possible through their data.
Project Design Basis / Education Philosophy
The Nataraja Foundation
www.nataraja.org.in
Sufi Saint Kabir A project of this size and scale will be a dead and soul-less agglomeration of Guru Nanak Dev
buildings and computer networks without a sound philosophy which is timeless
and yet extremely advanced and which seeks, as it were , to bind people of
diverse faiths and lead them towards the realization of their potential as human
beings .
The following words of Vivekananda will therefore serve as a Pole Star for future
Indian thinkers on education “ Let the watchword be acceptance and not
exclusion. Not only toleration , for so called toleration is blasphemy. Toleration
means that I think you are wrong and I am just allowing you to live. Is it not
Mother Teresa
blasphemy to think that you and I are allowing others to live ? I accept all
religions that were in the past and worship them all. I worship God with everyone
of them, in whatever form they worship him”. Rabindranath Tagore & Gandhiji
Vivekanand Continues …
The teacher is Lord Brahma as he generates knowledge within us. He is like Lord
Vishnu as he sustains us and guides us on the right path. He is like Lord
Mahesha (Shiva) as he destroys ignorance and thereby enlightens us. My
Salutation to such a Guru, who is verily the Supreme God.
Note : The Project Design Basis / Education Philosophy can also be downloaded
from the following website :
www.nataraja.org.in
EDUCATION MEGAPROJECT - OVERALL CAPEX / OPEX SNAPSHOT OF PPP SCHEME
Cash Requirements Summary
Bootstrap 1 Bootstrap 2
US $ / Rs Exchange Rate ( 18th march ' 2010 ) 45.49 Phase I Phase II Phase III
Item 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Pilot Projects ( Schools in 28 States + 7 Union Territories) … Assumed that 100 35 35 Assumed that In Actual Project
85 % day schools and 15 % Residential Schools % of Pilot Cost Construction 60 % Cost is borne
borne in the same in the 1st year and 40 % in the
year second year
Masons Training Institutes ( Lot & Rs 5 Crore Capex and Rs 60 60 The Nataraja Foundation
2 Crore Opex for each / year ) www.nataraja.org.in
Day Schools Nos Of 850 2125 2125 2550 2550 2550 3187 3187 3187 3187
Commissioning Sequence ( For Initiating Opex ) Institutions 850 2125 2125 2550 2550 2550 3187 3187 3187 3189
Cumulative commissioned 850 2975 5100 7650 10200 12750 15937 19124 22311 25500
Residential Schools 150 375 375 450 450 450 563 563 563 563
Commissioning Sequence ( For Initiating Opex ) 150 375 375 450 450 450 563 563 563 561
Cumulative commissioned 150 525 900 1350 1800 2250 2813 3376 3939 4500
Total Schools Construction Started Each Year 1000 2500 2500 3000 3000 3000 3750 3750 3750 3750
Commissioning Sequence ( For Initiating Opex ) 1000 2500 2500 3000 3000 3000 3750 3750 3750 3750
Cumulative commissioned 1000 3500 6000 9000 12000 15000 18750 22500 26250 30000
Costs Of Teachers Guest houses ( A total of 4,20,000 14000 35000 35000 42000 42000 42000 52500 52500 52500 52500
Guesthouses will be built under the teacher sharing
programme )
Fuel Costs Of teacher sharing programme : Rs 11.56 115.6 404.6 693.6 1040.4 1387.2 1734 2167.5 2601 3034.5 3468 3468
Lakhs / School / Year to cover 14 assisted schools 0.12 Opex To Be added
IT System for Existing Schools … ( % Complete ) 20% 40% 40% Capex & Opex to be be added depending on system
Total Cost Of System with alerts @ Rs 500 Crores : 500 100 200 200 needs and the extent to which the teacher sharing
programme is implemented.
Taken as US $ 5 Billion
IT System for Megaproject Schools … ( % Complete ) over 10 years ( IT Infra )
( Launching of 12 Satellites + Using 4,00,000 Km of Existing 0 0 0 758 1895 1895 2275 2275 2275 2843 2843 2843 2843 0
Fibre Optic Across 30,000 Hub School and 420,000 Assisted Costs of
Schools Via VSATS ) Essential Items
in Crores
% Completion 30% 70% 100%
Forming and Staffing Of the ISIC with Average Salary @ Rs 450 135 315 450 450 450 450 450 450 450 450 450 450 450 450
20 Lakh / Year = Rs 450 Crores ( Fully Staffed as below )
( 50 Senior Educationists , 300 Finance Professionals, 1200
Project Engineers, 300 IT Professionals, 100 Lawyers, 300
Architects )
Opex Cost of Teacher Training Institutes 1000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Opex Costs of Masons Training Institutes 120 240 240 240 240 240 240 240 240 240 240 240 240 240
Development Of Vernacular Languages + Urdu+ Hindi + Sanskrit 933 2333 2333 2800 2800 2800 3500 3500 3500 3500
Capital Expenditure Rs.( Thousands Of Crores ) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
( US $ Billion ) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Total Capital Expenditure ( Rs Crores ) #VALUE!
Total Capital Expenditure ( US $ Billion ) #VALUE!
Operational Expenditure ( Rs. Crores ) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
( US $ Billion ) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Sanskrit is possibly the worlds oldest language and it is dying in India. The Education Megaproject therefore allocates Rs 8000 Crores over 10 years to the promotion of Sanskrit in schools and for the digitizing of Sanskrit content as Sanskrit serves as
the basis for several Indian and even international languages. This will reverse the huge neglect it has suffered neglect over the last 100 years . All other Indian Languages ( Tamil, Bengali, Marathi, Telugu, Gujarati, Kannada etc. ) including most
importantly Urdu and Hindi together will receive an additional Rs 20,000 Crores over 10 years under the Megaproject for the development of digital content and opening of Institutions for scholars. Total Rs 28,000 Crores. Encouragement of local
languages will allow the poorest citizen to participate fully in the economy. We want every farmer and labourer to have an equal opportunity and language should not be allowed to be a barrier due to lack of Funds. The Education Megaproject has a
special large budget for Vernacular Language propogation.
the basis for several Indian and even international languages. This will reverse the huge neglect it has suffered neglect over the last 100 years . All other Indian Languages ( Tamil, Bengali, Marathi, Telugu, Gujarati, Kannada etc. ) including most
importantly Urdu and Hindi together will receive an additional Rs 20,000 Crores over 10 years under the Megaproject for the development of digital content and opening of Institutions for scholars. Total Rs 28,000 Crores. Encouragement of local
languages will allow the poorest citizen to participate fully in the economy. We want every farmer and labourer to have an equal opportunity and language should not be allowed to be a barrier due to lack of Funds. The Education Megaproject has a
special large budget for Vernacular Language propogation.
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
3468 3468 3468 3468 3468 3468 3468 3468 3468 3468 3468 3468 3468 3468 3468 3468
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450
2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
240 240 240 240 240 240 240 240 240 240 240 240 240 240 240 240
#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
TERM SHEET
Sl. No. Source Description Estimate of Total Notional Amount % Of Source Amount Available Cash Available Each
Possible Corpus Potentially Available / Proposed For Each Year Year (
( US $ Billion ) Year ( Education ( US $ Million ) Thousands of Crores )
US $ Billion ) Megaproject
2 30 % of a proposed new tax on the services 510 5.1 30% 1530 6959.97
component in future Infrastructure projects.
The base case estimate of the delta / net
additional Infrastructure investment in India over
the next 10 years is taken at US $ 1.7 Trillion
( Goldman sachs View ). This cash stream
will triple by 2025 when the size of the Indian
economy is expected to be US $ 4.5 Trillion.
3 Graduate Tax Collected From Employers In 10.11 2.53 80% 2022.42 9200
India. It is assumed here that there are 46
Million Graduates in India ( 2004 Estimate ). This
number today is larger. This cash stream will
double by 2025 when the size of the Indian
economy is expected to be US $ 4.5 Trillion.
Assumptions On Financing / Sources Of Funds :
Sl. No. Source Description Estimate of Total Notional Amount % Of Source Amount Available Amount Available Each
Possible Corpus Potentially Available / Proposed For Each Year Year (
( US $ Billion ) Year ( Education ( US $ Million ) Thousands of Crores )
US $ Billion ) Megaproject
4 Quantized Tobin Tax on Forex Transactions. It 1.1 1.1 100% 1095 4981.16
has been assumed that the volume of daily
average forex transactions in India and by
companies doing business in India is of the order
of US $ 15 Billion. A Tobin Tax ( First
proposed by Nobel laureate James Tobin ) to be
levied at the rate of 0.02 % on the total volume of
the transaction which will be quantized as per the
size of the transaction with higher rates applying
to larger transactions to prevent speculation on
the Indian Rupee as it moves towards Capital
Account Convertability ). This cash stream will
triple by 2025 when the size of the Indian
economy is expected to be US $ 4.5 Trillion.
5 Yearly Rent From Re-developed PSU Land by 3.00 3.00 100% 3000 13647
the Indian Social Infrastructure Corporation
( ISIC ) Under The Urban Equity Withdrawl
Programme ( Phase I ) .
6 Yearly Rent From Redeveloped PSU Land by 10.00 10.00 100% 10000 45490
the Indian Social Infrastructure Corporation
( ISIC ) Under The Urban Equity Withdrawl
Programme ( Phase II ) .
Assumptions On Financing / Sources Of Funds :
US $ / Rs Exchange Rate ( 18th march 2010 ) 45.49
Sl. No. Source Description Estimate of Total Notional Amount % Of Source Amount Available Amount Available Each
Possible Corpus Potentially Available / Proposed For Each Year Year (
( US $ Billion ) Year ( Education ( US $ Million ) Thousands of Crores )
US $ Billion ) Megaproject
7 Teacher / Content Outsourcing Business : The 21.04 10.52 40% 4207.52 19140
Education Megaproject will be employing
approximately 1.74 Million Teachers across
India on 5 year Rolling Contracts. It is proposed
that the terms of the contracts be flexible enough
to permit teachers to organize themselves into
teams which could then, in an organized
manner , produce education content for the world
market. The revenue earned through this venture
will be shared by teachers and the ISIC in the
ratio 60:40 with the larger sum going to the
participating teachers. They will also participate
under the Aegis of the ISIC in a Teacher
Exchange Programme with schools in foreign
countries. For the purposes of this calculation the
total teacher strength is assumed as 1.5 Million. It
is further assumed that just 50 % of the teachers
will participate in this venture and that each
teacher's extra earning potential is Rs 5,50,000
each year.
8 Students on Fractional Vouchers / NRI Quota #VALUE! #VALUE! 100% #VALUE! #VALUE!
and SAARC / Foreign Students : A majority of
the students within the Megaproject will be on
Education Vouchers ( 60 - 70 % ). However some
37 % + of the students from middle class families
and well off families will be on fractional
vouchers with 2 / 3rd subsidy and an additional
2 - 3 % could be from SAARC countries or NRI /
Foreign Students who will pay a premium
( Double The Voucher value ).
10 Un-Utilized Funds with various Ministries and 21.59 21.59 100 21590 98212.91
NGO's
11 Equity Infusion By Promoter groups for 25,500 #VALUE! #VALUE! 100 #VALUE! #VALUE!
Day Schools and 4500 Residential Schools
12 Committed and Un-Utilized Funds Lying with the 15.6 15.6 100 15600 70964.40
World bank and the Asian Development Bank, on
which the government of India is paying
Commitment Charges of over Rs 125 Crores
each year.
Assumptions On Financing / Sources Of Funds : `
Sl. No. Source Description Estimate of Total Notional Amount % Of Source Amount Available Amount Available Each
Possible Corpus Potentially Available / Proposed For Each Year Year (
( US $ Billion ) Year ( Education ( US $ Million ) Thousands of Crores )
US $ Billion ) Megaproject
Collected From Employers of Graduates US $ 2.02 Billion / Year Securitize 10 year annual
Graduate Tax = US $ 2.02 Billion / Year r ae Y/ noilli B 46. 6 $ S U Receivables at 6 %
r ae Y/ noilli B 46. 6 $ S U
and Draw US $ 49 Billion
US $ 3 Billion
Education Megaproject
PSU Owned Metro / Large City Real Estate US $ 49 Billion For Capex
Fund Act
Equity Withdrawl = US $ 40 Billion
Education Megaproject Fund
r ae Y
Outsourcing
Business
Graduate Tax = US $ 4.0 Billion / Year US $ 4.0 Billion / Year
/ noilli B 68. 71 $ S U
Collected From Employers of Graduates
r ae Y/ noilli B 88. 4 $ S U
Securitization
r ae Y
Quantized Tobin Tax on Forex Transactions = US $ 3.27 Billion / Year Facility Pending Grant
US $ 3.27 Billion / Year
r ae Y/
/ noilli B 702. 4 $ S U
noilli B 55. 3 $ S U
US $ 10 Billion
Yearly Rent From High FSI Re-Developed
PSU Properties all over India = US $ 10 Billion Education Megaproject
US $ 17.86 Billion For Fund Act
Opex
Government Of India
The Nataraja Foundation Ministry Of Finance
www.nataraja.org.in
Ministry Of HRD
Ministry Of
Disinvestment
( FUTURE SOURCE )
Parliament
ISIC Act
25 % Equity 75 % Equity
Central "The Indian Social Infrastructure Corporation " 28 State
Government sets up Governments
30,000 Acres The Primary & Secondary Education Megaproject SPV 900,000 Acres
Of Land For Setting Up Schools
Of Land all Over
This 9,30,000 Acres , can be visualized approximately as a strip of Land 62 India
Km by 60 Km. It is not much land for India taken as a whole. Out of this, with Land Bank of 9,30,000 Acres all over India
30,000 Acres can be easily spared / collected by the central government
from PSU's and government organizations in Metros and B category
Towns . The balance 9,00,000 Acres will be in Villages and towns in 28
States and 7 Union Territories all over India and will be given out on bids
for setting up Schools and Hospitals. Land For Equity Deal
Service Partners
PPP Contracts
The Indian Comptroller & Auditor General
Commercial Land Bank :
30,000 Acres to be held in Land Bank . Upto 24 % of Cherry Picked land to be sold to Finance 40 % Primary & Secondary Education Of India to Monitor All ISIC Cashflows + All
Capex of Primary & Secondary Education Project / Healthcare Megaproject . Balance 76 % land to Mega Project Sales & Lease Rentals Of ISIC Related Land
be given on rent in towns and cities to large city developers so as to earn Cash to meet project ( Executive Board ) Under This Project.
Operating Cash Requirements so as to subsidize Education and Healthcare provision to Low Income
Groups.
It must be understood however that increased FSI requires increased Infrastructure support
in terms of city amenities and better municipal infrastructure. This needs to be incorporated
into the city's development plan. The land transfers and sales however can proceed
immediately and need not wait for the city development plans to be changed. Execute US $ 131.38 Billion Primary &
Secondary Education Mega Project between
2012 - 2023
School Megaproject Enabling School Megaproject Enabling Total Schools 6000 Total Schools 9000 Total Schools 15000
Infrastructure Infrastructure
Teachers
Teachers Training Training Day Schools 5100 Day Schools 7650 Day Schools 12750
100 100
Schools Schools
Residential 900 Residential 1350 Residential 2250
Master Masons * 30 Master Masons* 30 Schools Schools Schools
Training Schools Training Schools
* Master Masons to be trained in the * Master Masons to be trained in the
Vernarcular Architecture Style Vernarcular Architecture Style
Once trained , Master Masons and Teachers could organize themselves into Guilds ( Not Cooperatives ). The Masons Guilds could bid for contracts to build the schools / hospitals.
The BOO / BOT concession for the Primary & Secondary Schools will be given with all necessary clearences and professional affiliations in a single window. If a promoter group / concession awardee fails
to meet certain transparant criteria ( specified in a 1 page rule book ), the concession will be terminated and offered to a new developer ... there will be no appeal to any court and the 1 page rulebook will
be very clear on concession termination issues.
There are huge cashflows involved in both the project execution and operations phases of the Indian Primary & Secondary Education Megaproject . The execution phase will involve the raising and
expenditure of approximately US $ 131.38 Billion or Rs 597,651 crores between 2011 and 2023 and the operations phase will involve project revenues and rent allocations ( which will help approx. 126
million children to receive quality education free of cost ) of approximately US $ 42.57 Billion each year after 2023.
Governance : Project & Operations Phase
There are huge cashflows involved in both the project execution and operations phases of the Indian Primary & Secondary Education Megaproject . The execution phase will involve the raising and
expenditure of approximately US $ 131.38 Billion or Rs 597,651 crores between 2011 and 2023 and the operations phase will involve project revenues and rent allocations ( which will help approx. 126
million children to receive quality education free of cost ) of approximately US $ 42.57 Billion each year after 2023.
The scale of cashflows needs to be monitored in a transparent manner and the Megaproject needs to be open to public audit. It is therefore an explicit requirement of the project that it be executed in a
corporate setup, outside the concerned ministries , under government of India and to implement a context based communications platform for project MIS. In fact , it is better not to execute this
project , than to do it within a ministry or the existing education systems where information in-efficiencies and leakage of funds will undermine the very basis of the projects and lead to huge
cost and time over-runs.
The project needs therefore to be executed and operated in a corporate setup , under a Special Project Vehicle ( SPV ) set up under an act of Parliament ( The ISIC ) in the same manner as
organizations such as IOC, ONGC, NHAI , IIFC and UTI were set up. The chief secretary’s of all states , The Chairman of the National Knowledge Commission, The Secretary , Ministry of HRD, the
Deputy Chairman of the Planning Commission, The Minister of HRD will be members of the board. The responsibility for audit of the organization will vest with the Auditor General of India.
The Masons guilds are a very important part of this project as they will generate huge employment opportunities in rural india. As envisaged however , the guilds will essentially be self governing and
market forces. will decide their profitability. Government or local political control on these cooperatives will kill these guilds and therefore it is essential to protect their interests only through broad , non-
interfering regulation. The guilds must therefore never be turned into cooperatives which breed corruption and in-efficiency.
Stand Alone ( Day School ) Facility With 300 Children X 2 Shifts, Full www.nataraja.org.in
Time 51 Teachers + 7 Visiting Faculty Zero Drop out rate is being assumed
IMPORTANT NOTE ON OPERATING FINANCIALS OF THE SCHOOLS: Floor Space Required ( Class
due to superior teaching inputs … Room + Hostel ) in Sq Ft @
Fractional Vouchers in Day schools Project will rely less on pull factors such
will provide Rs 850 / Sq Ft … This includes
This project works because the Education SPV provides for2/3 subsidy.
the total costs of education for 18 as
Million
Mid DayChildren ( In the
Meal Scheme Hub
& More onSchools) . Theconstruction & Furniture
Vouchers also include the cost of the teacher sharing programme which reaches another Better Children
108 Million and InspiringwhoTeachers
are attopresent
keep covered byrequired
For ease of calculations students students in school.
the Sarva Shiksha Abhiyan ( SSA ). A total of 126 Million Children
on fractional are are
vouchers therefore covered with the best teaching resources possible.
added in
the end.
This spreadsheet Looks exclusively at the financial viability of the schools from the point of view of private developers / Consortia who
will be investing just Rs 0.88 Crore equity each and raising the balance of their 60 % share as Interest free debt during the construction
period from the World Bank / Asian Development Bank . Here again Government of India will back this debt with a revolving $ 10 Billion
sovereign loan guarantee and take on the cost of the debt during the construction period. After the construction is complete, the World Bank /
Asian Development Bank will be replaced in the financial structure by a commercial bank and the debt will carry a normal market rate of
interest . The project developer will pay back this loan and any interest that will be due.
The ISIC raises all the money required through unique and innovative financing. Please read the project concept document for more
details on financing
Stand Alone Residential Facility With 600 Children ( Residents )+ 200 Children as www.nataraja.org.in
Day Scholars , 51 Full Time Teachers + 7 Visiting Faculty Zero Drop out rate is being assumed
IMPORTANT NOTE ON OPERATING FINANCIALS OF THE SCHOOLS: due to superior teaching inputs … Floor Space Required ( Class
System has sufficient inbuilt Project will rely less on pull factors such Room + Hostel ) in Sq Ft @
This project works because the Education SPV provides
capacity for the total costs
for de-bottlenecking. of education for 18 Day
as Mid Million
MealChildren
Scheme &(MoreIn the Rs 850 / Sq Ft … This includes
on Hub Schools) . The
at present coveredconstruction
Better and Inspiring Teachers & Furniture
Vouchers also include the cost of the teacher sharing programme which reaches another 108 Million Children who to keep
are by
required
the Sarva Shiksha Abhiyan ( SSA ). A total of 126 Million Children students
are therefore covered with in school.
the best teaching resources possible.
This spreadsheet Looks exclusively at the financial viability of the schools from the point of view of private developers / Consortia who
will be investing just Rs 1.75 Crore equity each and raising the balance of their 60 % share as Interest free debt during the construction
period from the World Bank / Asian Development Bank . Here again Government of India will back this debt with a revolving $ 10 Billion
sovereign loan guarantee and take on the cost of the debt during the construction period. After the construction is complete, the World Bank /
Asian Development Bank will be replaced in the financial structure by a commercial bank and the debt will carry a normal market rate of
interest . The project developer will pay back this loan and any interest that will be due.
The ISIC raises all the money required through unique and innovative financing. Please read the project concept document for more
details on financing
The Nataraja Foundation
www.nataraja.org.in
A small teacher guesthouse will be constructed in the environs of each of the 14 assisted village
TOTAL COSTS
Assumptions
All assisted schools will be within a 50 Km radius of the hub school
Each Small Vehicle Does 75 Km / Day on Average and Each Bus / Minibus travels 50 Km / Day
Cost of Diesel @ Rs 40 / Litre. Global petroleum markets are volatile and marginal pricing economics c
Mileage Assumptions
Km / Litre
Of Diesel
Bus 4
Mini Bus 6
Jeep 10
Car 12
Notes :
Lakhs
Lakhs
Lakhs
Crores
t priced here.
Project is capable of financing the
launch of upto 12 New EDUSAT
Statellites beginning in 2013 and
can also finance the replacement of
these satellites every 7 years.
Children exploring the $ 100 Computer Pres. Kalam inaugurates a Portal ISRO - GSLV Prepares to Launch EDUSAT A Village Trainer introducing childr
Note :
uring project planning and execution ... system will deliver huge cost savings
the Operations phase ... system will allow for network enabled learning for upto 126 Million
hildren.
or a detailed write-up on the contextual communications platform please click on the document
ointed out by the arrow :
lease note that the plan below will need to be changed to accomodate the needs of each
egional school cluster. The Teacher sharing programme may reduce the need for a large
cale deployment of IT infrastructure if recorded content and Laptops are a cleaper option.
ne of the major strengths of the Education Megaproject and it's financing mechanism is the
rge amount of financial resources that it is capable of raising to fund its projects based on it's
different sources of financing.
etwork enabled learning is one of the key projects that will be financed for which the SPV will
have adequate resources.
he 30,000 schools set up under this project and the 420,000 additional assisted schools will
onstitute the largest E Learming network globally at the primary and secondary school
vel backed by sophisticated fiber optic networks and upto 12 EDUSAT communication
atellites specially launched for the purposes of this project by ISRO.
owever , E Learning needs to be used and understood for what it is - A tool to used
y competent teachers to convey the right knowledge inputs and the right value
ystems to millions of children who will be on the network.
here can be no substitute for a good teacher at the primary and secondary school level where
e children inculcate their values. This point is made specifically since people have a wrong
mpression that the internet and computers will solve all our national problems. For the
urposes of this project therefore we are looking at E - learning, VSAT broadband and 3 G
nabled internet based learning as just a tool ... to enable learning.
India we already have close to 400,000 Km of Fibre Optic Cables in the ground. Since
ber carrying capacity is virtually unlimited , a fact made possible by multiplexing and optical
amplification , telecom companies operating in India can be required to lease some of
eir capacity at a concessional rate for the purposes of building the government backed
nowledge network that will operate between high traffic nodes on the school network.
ystems to millions of children who will be on the network.
here can be no substitute for a good teacher at the primary and secondary school level where
e children inculcate their values. This point is made specifically since people have a wrong
mpression that the internet and computers will solve all our national problems. For the
urposes of this project therefore we are looking at E - learning, VSAT broadband and 3 G
nabled internet based learning as just a tool ... to enable learning.
India we already have close to 400,000 Km of Fibre Optic Cables in the ground. Since
ber carrying capacity is virtually unlimited , a fact made possible by multiplexing and optical
amplification , telecom companies operating in India can be required to lease some of
eir capacity at a concessional rate for the purposes of building the government backed
nowledge network that will operate between high traffic nodes on the school network.
owever, to reach remote locations on the school network, 384 Kbps VSAT's can be deployed
o provide Video, Voice and data services to children in remote schools. These VSATs will be
nanced by the project SPV and the following configuration can be provided at several
ousand locations :
or 30,000 schools built over a period of 10 years , the total cost will be Rs 2100 Crores.
ormally a 384 Kbps of leased VSAT bandwidth would cost Rs 26.88 Lakhs / year ( Rate is
pprox Rs 7000 / Kbps / Year) ... so for 30,000 schools the cost would be Rs 8064 Crores / year .
ince the Capex is low and the Operating leased line costs are extremely high ... it makes sense
r the SPV to own its own satellites.
With a view to minimizing the operating costs of the Network,the SPV will enter into a JV with
SRO to launch the ISRO EDUSAT's in batches of 2 each every year from 2013 itself ... to
unch a total of 6 EDUSATs before January 2016 by which time almost 14000 New schools
ould have been commissioned.
ost of each EDUSAT , including launch cost is estimated at US $ 275 Million. So Phase 1 will
volve an expenditure of US $ 1.65 Billion on the 6 satellites.
total of 21,000 schools will then have access to the EDUSAT linkage. In addition to the
1,000 schools , the Project SPV will finance the installation of VSAT terminals at 80,000 more
ural schools,thereby bringing a total of 1,00,000 schools within the EDUSAT's coverage by
anuary 2016. Given the above, the total installed cost of Phase I will be approximately Rs
5,250 Crores.
elecommunication technologies are continuously evolving and costs keep coming down . 3
and other broadband technologies can be therefore deployed to get an increasing number
schools on the network. Actually the teacher sharing programme may considerably reduce the
eed for VSAT and Satellite deployment if recorded content on laptops ( using a Projector &
creen ) is found to be a cheaper solution.
ote :
he current plan is looking at just the execution of a project to deploy technologies currently in
e market and a futuristic plan can be incorporated based on advice from technologists who
re more qualified to deal with this subject. This project is already assuming a higher capacity
DUSAT for launch in 2014.
eas to improve this E - Learning module of the project are therefore very welcome.
Project Bootstrapping & Support Required
Kindergarten , Auroville
Pondicherry
The Primary & Secondary Education Megaproject needs some help from the Government of India to get off th
1. To enable fast track execution of this project, Government needs to initiate a total of 70 pilot projec
across 28 states and 7 Union Territories. Each pilot project will include :
- A school for 600 students ( design capacity of 300 students and operating in 2 Shifts )
- A large rural teachers training facility to train 300 teachers each year
- A Masons training facility to train 300 masons in Vernacular / Low cost / sustainable architecture
Each of the 70 pilot projects will require between 150 – 200 acres of land for the above activities.
2. A Statutory Organization “The Indian Social Infrastructure Corporation “ will need to be created under
act of Parliament. The legal status of this organization and It’s financial structure / means of financing a
made available for free download on (www.nataraja.org.in) with the caption “Legal and Financial Structu
3. A statutory fund named “The Indian Education Megaproject Fund “ will need to be created under an Act
Parliament. This fund will be on the lines of the “Central Road Fund “ , which has been created to build t
Golden Quadrangle Project. Therefore the passage of “The Education Megaproject Fund Act “ is critical
put this project into execution mode.
4. A new tax proposal on the lines of the recently implemented tax, on the services component of housi
projects (2010 Budget) will need to be implemented to extend service tax to the labour and servic
component of Infrastructure projects. This will very easily generate a new cash source for creating th
human resources necessary to plan and build large Infrastructure projects in India. At present, there
a shortage of 30 million trained people in the construction Industry alone. So the imposition of a serv
tax on the labour / skill component of Infrastructure projects is fully justified.
5. An initial corpus needs to be set aside, to set up the 70 pilot projects including the model schoo
Parliament. This fund will be on the lines of the “Central Road Fund “ , which has been created to build t
Golden Quadrangle Project. Therefore the passage of “The Education Megaproject Fund Act “ is critical
put this project into execution mode.
4. A new tax proposal on the lines of the recently implemented tax, on the services component of housi
projects (2010 Budget) will need to be implemented to extend service tax to the labour and servic
component of Infrastructure projects. This will very easily generate a new cash source for creating th
human resources necessary to plan and build large Infrastructure projects in India. At present, there
a shortage of 30 million trained people in the construction Industry alone. So the imposition of a serv
tax on the labour / skill component of Infrastructure projects is fully justified.
5. An initial corpus needs to be set aside, to set up the 70 pilot projects including the model schoo
teachers training institutes and Masons training institutes. All this initial money that the governme
spends upfront will be returned by the “ The Indian Social Infrastructure Corporation ” within 2 –
years with interest calculated at 12 %. The rest of the project (balance 30,000 schools) will be bu
without any further demands on conventional means of financing .
t Required
Deens Academy
Whitefield,
Architect
Bangalore
: RL Kumar
Cost : Rs 690 / Sq Ft
Architect : RL Kumar
erating in 2 Shifts )
/ sustainable architecture
Respected Teacher,
… Abraham Lincoln
“ With malice towards none … with justice for all … with firmness in the right "
but see what you can do …
he is such a fine fellow,
my son !
… Abraham Lincoln
“ With malice towards none … with justice for all … with firmness in the right "
esign Basis Document / Project Philosophy
Megaproject Information
Architecture
Chairman, NKC
Member, NKC
Member, NKC
Member, NKC
Member, NKC
Member, NKC
Member, NKC
Member, NKC
Advisor, NKC
Advisor, NKC
Advisor, NKC
Advisor, NKC
Executive Director NKC
Research Associate
Research Associate
Research Associate
Research Associate
Research Associate
Research Associate
Research Associate
E Mail Address Used To Submit Project
dch@nic.in
secy.sel@nic.in
secy-fs@nic.in
secy-dea@nic.in
govindmohan1@yahoo.com
apj@abdulkalam.com
s.pitroda@nic.in, anna.faron@c-sam.com
a.ganguly@nic.in, ashok.ganguly@firstsource.com
p.balaram@nic.in, pb@mbu.iisc.ernet.in
j.ghosh@nic.in , jayatijnu@gmail.com
n.nilekani@nic.in,nandan_mn@infosys.com
s.ramdorai@nic.in, sujatha@math.tifr.res.in
amitabh.mattoo@gmail.com
s.regunathan@nic.in
k.bansal@nic.in
k.datar@nic.in
E Mail Not available
s.bahri@nic.in
a.goswami@nic.in
n.dalmia@nic.in
m.pradhan@nic.in
s.randhawa@nic.in
v.bagri@nic.in
d.ayyanki@nic.in
a.chaney@nic.in