Dr. Rahul Choudaha makes a compelling case for the need for India to (at least) start thinking about for-profit institutions in India.
He has linked the article in his post.
HE in India is plagued by gross inefficiencies, and the government would be better off managing and regulating the education process (being the watchdog) rather than running it themselves. Dr. Choudaha also makes the case of the enormous funds required to meet the target of the 12th Five-year plan.
This is a call that should ideally come from the industry which has been crying foul over the lack of ready-for-the-job manpower. Industry and sector-specific bodies should be running such institutions, with a focus on vocation and industry-oriented training.