Set up a School

A school is a unique business. Unique because it cannot even be called a business. Running a school is considered a not-for-profit venture, but you just need to look around to see that the business opportunity is huge. According to an estimate by an NGO active in the field of education, there are more than 14 lakh children in Delhi alone who seek admission every year in various classes. Schools cannot be set up by private entities. They have to be run by a society formed under the Societies Act of 1860, or a trust under Public Trust Act as existent in different states, or by forming a company under Section 25 of the Companies Act 1956. In other words, a school has to be set up strictly as a non-profit business. At least that is the theory. Setting up a school is not just about constructing physical infrastructure in the form of building classrooms and setting up libraries and laboratories. It does involve obtaining permissions and licenses from concerned authorities at various stages. It starts with the setting up of a trust or a society, with a governing board of five or six members, with a president, chairperson, and a secretary duly identified, as specified under the law. This article will focus primarily on identifying the various steps involved in opening a school, providing facility for the study for students from Class 1 to Class 10. The next step Once the governing entity, whether a company, trust, or society, comes into existence, it will have to look for land. There are two possibilitiesone, if the society or trust has a land of its own, or, second, when the governing entity decides to buy a land for the proposed school. Buying land from the government requires permission in the form of a no-objection certificate from the Department of Education of the concerned state. The no-objection certificate, called Essentiality Certificate (EC), certifies the requirement of a school in a particular area. The logic behind the practice is to make sure no two schools compete with each other and one becomes redundant. The EC comes with a rider that construction must commence within three years, failing which the society will have to reapply for the same. One can apply to the concerned municipal corporation for land for the school with the EC. Land is supposed to be allotted to the governing entity at subsidized rates is usually allotted through auction. It is almost impossible for a new entrant to get land. Land is normally granted to established players with a chain of schools, says R.B. Adityodaya Karna, deputy secretary of Prarthana Society, Bangalore, a trust that runs a school in the city. Even if a member on the board of a governing entity has land that the entity wants to use for setting up a school, a no-objection from the Department of Education stating the requirement of a school in that area is required. The major education boards of the country, namely, the Central Board of Secondary Education (CBSE), the Council for the Indian School Certificate Examinations (CISCE), and state government boards, have clearly laid down norms for land requirements for schools. This, in most cases, is 2 acres, except for hilly regions and

metropolitan cities, where the requirement is less. Construction can take place only on a part of the land, and a playground has to be created in the rest.
CBSE has reduced the land requirement in urban areas for giving affiliation, 0n Dec 7, 2011 Schools in cities with a population of over 15 lakh will require one acre now instead of two acres. Under the old rules, schools that had an acre could get affiliation only in cities with more than 25 lakh people.

A school up to Class XII will need a minimum of 24 classrooms, three science labs, a mathematics lab and a library. The CBSE official contended that such schools could tie up with bigger ones in the neighborhood to use their playgrounds.

Adityodaya says, While conceiving the idea of a school, one has to asses the potentials of a location, kind of competition possible, and the target groupthe lower middle class, upper middle class or the rich classthe school will cater to. From the time of forming a governing entity to a school actually starting up, one normally requires about a year, though taking more than two years is also not unheard of. Normally the infrastructure required to start up can be constructed within a period of six to seven months. Once the construction is over, school authorities need to apply for recognition. Up to Class 5 recognition from municipality is all that is required. For Classes 6 to 8 recognition comes from the Department of Education. Recognition for anything above this also comes from the Education Department, but after a minimum gap of two years. School authorities are free to seek affiliation to CBSE or CISCE. In that case, the school will have to follow the guidelines of the board it is seeking affiliation to. The school will need to follow the syllabus, books prescribed by the affiliating board, and pay specified salaries to the teachers. If it is not a government school, affiliation for schools normally comes in stages. Initially, for Classes 1 to 6 a temporary affiliation is given and guidelines are laid down for schools by the concerned education board. Once things are in place according to the guidelines, an inspection is conducted. If things are to the satisfaction of the board authorities, permanent affiliation is bestowed on the school. Adityodaya says inspections are not so rigorous after permanent affiliation is granted, but a school has to be run according to the rules of the board. Licenses and documents Setting up a school involves a lot of legal processes from the very beginning. While forming a society, trust, or company, one has to have a Memorandum of Association, a document needed almost at every stage later. Like for any other business, a detailed project report for the school is also needed.. In addition, details of land and building, auditors statement, bank statements of the governing entity and their members and auditors statements are needed at some point or the other. Once the school building is ready for initial use, a certificate of recognition has to come from the state government, issued by the municipality for the junior classes, and by the Department of Education for middle school. If high school is to be added subsequently, certificate of up

gradation is required which is again issued by the Education Department. Affiliation from either the CBSE or CISCE is also done through a set process. Things do not stop here, as schools need certificates for hygiene, water, and completion of the building from the municipality. Investment and expenditure Investments required for a school depend on two vital componentscost of land, which depends on where you want to start your school, and whether it will be residential or non-residential. Thus, setting up a non-residential school in Delhi with over 1,000 students spread over 5 acres can easily cost around Rs 25 to 30 crore , while the costs would be lower in tier II and III cities. Adityodaya says, The key is to keep investments as low as possible. One should start with the bare minimum and keep on adding with time. We started with 350 students six years ago. At present we have 5,400 students enrolled in our school. Open School An open school is a mode of catering to the needs of those who, for some reason or another, cannot continue in the regular schooling system. National Institute of Open Schooling (NIOS), formerly called National Open School, was established as an autonomus institute in 1989 by the Ministry of Human Resource Development. According to the website of the NIOS, it focuses on not just elementary education, but also on courses at the pre-degree level, both academic and vocational. It has shown a steady growth in student enrollment, number of courses, and study centers. According to the website, over 14 lakh students are enrolled with the NIOS, making it the largest open school in the world. The degrees provided by the NIOS are as much valid as those provided by any other board in India. NIOS is now cooperating with state governments to start state open schools. So far 11 states have started it, and eight more are in the process of doing so. For residential schools, which are normally spread over 15 to 20 acres of land, costs can go quite high, as it will require hostels. A Kolkata-based school consultant who has worked with the renowned Doon School, says that the operational cost on teachers in normal non-residential schools is 70 percent, while in residential schools it is 50 percent.. Catering makes up another 30 to 40 percent of the operational cost. The teacher-student ratio in non-residential schools, according to the consultant, should not be more than 1:20, and for residential schools it should be 1:12. However, this is hardly the case in real life and many schools run with 40 to 70 students in a classroom. Adityodaya says, Teacherstudent ratio is 1:40 in most of the schools here [Bangalore] and is 1:60 or even 1:70 in many other schools. There is no general law governing school fee, though different state governments have tried to regulate this from time to time. Generally, if the only source of income is the amount collected under the head fees, then it will leave a huge hole in the schools finances. Adityodaya says, Schools make most of the money from donations, if it is not exclusively for rich class where very high fees are charged. Another source of income is development fees. The amount amassed through this route is quite high compared to the actual expenditure on development.

Schools set up their entire infrastructure in stages. For instance, the school run by the Adityodayas school started with only 50 books in the library, and kept on adding 10 more every month. Even the laboratory was built slowly. The school has a sleek computer laboratory now, and one big science laboratory, which caters to the demand of all students and all science subjects. However, usually schools do set up separate laboratories for physics, chemistry and biology.. While expanding to other states, a no-objection certificate from the state where one is running a school is required. This proves helpful as the concerned Education Department takes recognition of you as an established player, Adityodaya says. It is important to mention here a Supreme Court ruling that disallows schools from diverting the money earned to start another school. International programs in India International education boards in the form of the International Baccalaureate Organization (IB) and the Cambridge International Examinations (CIE) have slowly penetrated the Indian schooling system. About 50 schools already have IB affiliation or are authorized to follow the IB curriculum, and over 150 schools follow the CIE, which offers International General Certificate of Secondary Education (IGCSE) and A-levels in India. According to the regional director of IB Asia Pacific, India will have more authorized IB diploma programs than Australia by the year end. The IB program was founded in 1968 by the International Baccalaureate Organization (IBO), a non-profit educational organization based in Geneva, Switzerland. According to information on IBO website, three kinds of IB programs are: Primary Years (Kindergarten to Class 5), Middle Years (Classes 6 to 10), and Diploma (Classes 11 and 12). The Cambridge International Examinations (CIE), on the other hand, is a part of the University of Cambridge. It is a non-profit organization providing international qualifications, as its website claims. It offers the IGCSE, a two-year curriculum for students of Classes 9 and 10. This is considered equivalent to the British General Certificate of Secondary Education. It also offers Cambridge O-level, equivalent to the British General Certificate of Education, and the Advanced Subsidiary for Class 11. A-level program is for Class 12 students. For schools CIE affiliation normally takes six weeks to get, but if the schools are not ready it can take two to three years, as regional director of CIE, Rakesh Singh says.. The case with IBO is more or less the same. Today, schools have the option of seeking dual affiliationto an Indian board and to a foreign one. This has apparently made the Ministry of Human Resources consider the need to bring in some kind of legislation to regulate this. Like in the case of the CBSE or ICSE boards, schools willing to offer a curriculum of a foreign board should obtain a no-objection certificate from the Department of Education in the state concerned. In a few states like Andhra Pradesh there is currently no requirement to get a noobjection certificate to run an international school. According to a school authority, schools do not always follow the procedure of getting a no-objection certificate even if such regulations exist.

INSTRUCTIONS AND PROCEDURE FOR ON-LINE APPLICATION FORM

1. This is an electronic Application Form. Please read the following instructions and procedures carefully before you start filling the form. 2. Following types of Schools are eligible for affiliation with Central Board of Secondary Education (CBSE):1. Government or Government aided schools 2. Schools run by autonomous organisations under the Government like Kendriya Vidyalaya Sangathan (KVS), Navodaya Vidyalaya Samiti (NVS), Central Tibetan Schools Organization (CTSO), Sainik Schools Society etc. 3. Schools run by Government Department directly like Defence, Railways etc. 4. Schools managed directly by Public Sector Undertakings or by reputed societies of Public Sector Undertakings under the financial control of such Public Sector Undertakings or by Societies formed by such Undertakings 5. Private, unaided schools. 3. Please read the Affiliation Bye Laws carefully before applying. Online application may be submitted for the following :1. Approval of Middle Class Syllabus/Affiliation or Switch Over upto Secondary level/ Upgradation or Switch Over to Senior Secondary level 2. Additional Subjects, applicable in case of already CBSE affiliated Senior Secondary schools. 3. Extension of Provisional Affiliation in case of already CBSE affiliated school upto Secondary / Senior Secondary level.
NOTE:

4. There will be no Composite Affiliation upto Class XII except in switch over cases mentioned at Point No. 2 above. For non switch over cases, a school has to first affiliate itself with CBSE upto Secondary stage and run class IX for a minimum period of one year before applying for Upgradation to Senior Secondary level. 5. Affiliation fee is to be deposited separately by Demand Draft drawn in favour of Secretary, Central Board of Secondary Education, Delhi. 4. It may be ensured that the school is fulfilling the following essential conditions, otherwise the application is likely to be summarily rejected:1. A No Objection Certificate / Recognition Letter from the State Government OR Letter forwarding the request of the school from the State Government OR Recommendation from concerned Embassy of India in case of schools located

outside

India.

Note:- NOC is not required in cases of schools run by Government Departments/Government Undertakings/managed by Societies for Govt.

Undertakings and financed and controlled by the Undertakings. 2. Ownership or lease of requisite land in the name of the school or Society/Trust running the school. (If the land has been taken on lease, acceptable lease period is 30 years). 3. Availability of well qualified staff as per qualifications detailed in Chapter IX of the Affiliation Bye laws. The number of PRTs, TGTs, & PGTs should be sufficient to teach respective sections. 4. Non-proprietary character of the Trust or Society running the school (to be shown by way of an affidavit). 5. Payment of salaries to staff not less than the corresponding categories of employees in the State/Central Government. 6. In case of Private unaided schools, the schools must be established by Societies registered under the Societies Registration Act 1860 of the Government of India or under Acts of the State Governments as educational, charitable or religious societies having non-proprietary character or by Trusts. 5. Last date for submission of application is 30th June of the year preceding the year in which class VII, IX, XI is proposed to be started. These classes should not be started without prior affiliation with the Board. 6. The CBSE will not be responsible for any consequences if these classes are started without proper affiliation etc. by the CBSE. 7. In case of any dispute(s) regarding the withdrawal or not granting affiliation or any other matter pertaining to upgradation and or any matter arising in respect of anything pertaining to affiliation with any school and or any other person, Society, company or organization, the courts and tribunals at the Delhi shall have the exclusive jurisdiction to entertain such disputes. 8. Schools are required to attach the following documents for applying to APPROVAL OF MIDDLE CLASS SYLLABUS / PROVISIONAL AFFILIATION OR SWITCH OVER UPTO SECONDARY LEVEL / UPGRADATION OR SWITCH OVER TO

SENIOR SECONDARY LEVEL as scanned copies. (jpg, gif and pdf files only & not more than 1MB in size.)

NOC/Recognition Letter from State/UT or Recommendation from Embassy of India (if applicable)

Copy of Registration letter of the Trust/Society Management Committee Land Certificate from concerned authority (As per enclosed proforma). Affidavit of Non-Proprietary Character of Society 9. Schools are required to attach the following documents for applying to EXTENSION

OF PROVISIONAL AFFILIATION as scanned copies. (jpg, gif and pdf files only & not more than 1MB in size.)

A Scanned copy of Reserve Fund maintained as per norms. A Scanned copy of EPF code No. allotted by the EPF department. A Scanned copy of Affidavit to the effect that the school is not sponsoring candidates for Board's Examination of any other School/Branch,which is not affiliated to the Board.

AFFILIATION FEES A. Affiliation Fee in respect of Independent Schools

Approval of middle class syllabus:

Independent schools within the country Independent Schools

Rs.25,000/Rs.40,000/-

Fresh Provisional Affiliation for Secondary Classes (Class X)

Independent schools within the country

Rs.75,000/Rs.50,000/- (If already affiliated upto Middle Class) Rs.1,25,000/Rs.75,000/- (If already affiliated upto Middle Class)

Overseas Independent Schools

Upgradation Senior Secondary level

Independent schools within the country

Rs.50,000/Rs.1,25,000/- (If switch over from other Board)

Overseas Independent Schools

Rs.75,000/Rs.2,00,000/- (If switch over from other Board))

Introduction of additional subject

Independent schools within the country Rs 5,000/- per subject (Science Subject) Independent schools within the country Rs 3,000/- per subject (Other Subject) Overseas Independent Schools (Science Rs. 15,000/- per subject Subject) Overseas Subject) Independent Schools (Other Rs. 10,000/- per subject

Extension of Provisional Affiliation

Independent schools within the country Overseas Independent Schools

Rs 25,000/Rs 60,000/-

B. Affiliation Fee in respect of Govt./Aided/KVS/JNV Schools

Fresh Regular Classes

Affiliation

of

Secondary

Rs.10,000/Rs.10,000/-

Upgradation to Senior Secondary level

Introduction of additional subject (per Rs.1,000/subject) Annual Fee Rs.3,000/-

C.Overseas KVS Schools

Fresh Regular Affiliation of Secondary Rs.25,000/Classes Upgradation to Senior Secondary level Rs.25,000/-

Introduction of additional subject (per Rs.2,000/subject) Annual Fee Rs.5,000/-

D.Fee for Permanent Affiliation

Independent schools within the country Overseas Independent Schools

Rs.50,000/Rs.1,00,000/-

E.Appeal Fee for Permanent Affiliation

Independent schools within the country Overseas Independent Schools

Rs.25,000/Rs.50,000/-