HECI Bill 2025 'assault' on public universities; teachers flag debt risks, privatisation under HEFA loans

Academics and educators have raised concerns following the Centre’s renewed push to introduce the Higher Education Commission of India (HECI) Bill 2025. The proposed framework will replace the UGC, AICTE, and NCTE, and shift higher-education funding to a loan-based model under the Higher Education Financing Agency (HEFA), which critics described as an "assault" on public universities.

Teacher groups, including the Indian National Teachers’ Congress (INTEC), said the HECI framework would centralise control, remove grants, commercialise public education, and weaken institutional autonomy across universities and colleges.

It also warned that such a shift would disproportionately affect students from marginalised communities and make higher studies "unaffordable".

Criticism against the new framework intensified after the Union government’s renewed push to introduce HECI Bill 2025 in the winter Parliament session. Broadly, the HECI will have four functions – regulation, accreditation, funding and academic standard setting.

The ministry of education (MoE) has been working extensively on the draft HECI Bill for nearly seven years now. Digvijaya Singh, chairman of parliamentary standing committee on education, on November 28 wrote to the Union education minister Dharmendra Pradhan stating that the HECI Bill should be first placed before the panel.

Notably, Singh has expressed concerns over the possible closure of institutions in rural areas and privatisation of public education. He also said that the parliamentary panel will require time till the end of the first phase of the budget session to examine the bill.

Privatisation of higher education

INTEC said that HEFA loan-based funding without grants is not autonomy; it is enforced commercialisation. "Universities forced to survive on debt and market dependency will inevitably raise fees, introduce self-financed courses, lease campus resources, and dilute disciplines that are not market-friendly."

The transition from public grants to institutional debt risks converting universities from public, social empowerment institutions into commercial enterprises pressured to generate revenue simply to repay loans.

This, INTEC said, will seriously damage Indian higher education and block access for students from poor and marginalised backgrounds, especially those belonging to OBC, SC, and ST communities, who largely depend on public universities.

"This is a direct assault on the constitutional promise of equitable access to resources. Higher education is one of the most important national resources. It must be made accessible to all sections of the population free of cost," the joint statement read.

Criminal penalties for HEIs

Teachers have also raised alarm over the centralisation of regulatory authority as the draft regulations provide the new commission the power to define learning outcomes, fee structure, institutional status, and also the eligibility requirements for vice-chancellors (VCs) and faculty recruitment.

"Most critically, the Bill makes HECI bound to follow policy directions issued by the Central Government, and in case of disagreement, the Government’s decision is final. This effectively removes the autonomy of both universities and the regulatory body itself, placing academic decision-making in the hands of the political executive," it said.

Moreover, the Section 15(3)(g) and Section 20 of the HECI draft allows the body to revoke authorisation and order closure of universities and colleges that are deemed to be non-compliant.

Rather than strengthening academic and infrastructure of colleges, especially in rural areas, the new commission will possess the power to shut them down. Not just that, it also proposes criminal penalties for defaulting institutions, including possible imprisonment of institutional leaders for non-compliance, represents an unprecedented criminalisation of educational administration, INTEC said.

Also read NITI Aayog suggests HEFA-like agencies, fee hike, self-financed courses for state universities

Strengthen UGC’s public-grant funding model

INTEC chairman Pankaj Garg called for an immediate nationwide public engagement on this matter and demanded withdrawal of the plans. Instead of a new framework, teachers suggested restoration and strengthening of UGC’s public-grant funding model.

Garg also demanded protection of federal autonomy and equal participation of state governments.

"INTEC urges teachers, students, scholars, policymakers, and citizens across the country to recognize what is at stake and to stand together in defence of public universities and the democratic future of Indian higher education," the statement read.

Public reaction to HECI Bill 2025

Writers and social media users have also expressed concerns over the scale of commercialisation if the Bill is implemented.

Writer Swathi Soren said: "Unsurprisingly, the HECI Bill also proposed to divest powers from state-run institutions and remove grant-giving funds; setting the stage for privatisation. We all know how that worked out for America. While HECI itself was killed following swift criticism, it survives…"

Another X user wrote: "Please make sure that not only UGC, AICTE and NCTE are merged in HECI but the councils of IITs, NITs, IIMs, IISERs etc. are also merged in HECI to make the IITs, IIMs, NITs, IISERs accountable."