Business for coaching centers and hostels in Kota has slowed due to negative publicity about student suicides, new guidelines regulating coaching centers and the expansion of coaching brands to other cities, according to industry stakeholders.
The number of students in quota has fallen to 85,000 to 1 lakh from the usual 2 to 2.5 lakh this year, with annual revenue falling from Rs 6,500 to 7,000 crore to Rs 3,500 crore, they said.
Despite the setback, stakeholders are optimistic about the credibility of the Kota coaching model and its atmosphere, which is absent in other cities.
Kota’s educational system and environment is unmatched and will attract students next session, compensating for the decline, said Govindram Mittal, regional president, United Council of Rajasthan Industries. He said industrialists are also looking at alternative opportunities, with plans to set up information technology (IT) hubs in the city, on the model of Bengaluru.
Earlier this year, the Karnataka government approved a bill to reserve 50 per cent management posts and 75 per cent non-management posts for locals, drawing criticism from across the industry.
Industrialists here have approached Bengaluru-based companies to shift base to Kota and after the approval of these companies, land has been allotted for IT sectors under the direction of Lok Sabha Speaker and Kota-Bundi MP Om Birla, Mittal said.
Kota Hostel Association President Naveen Mittal said that the coaching center and hostel industry here is in crisis. Some of the owners who built many hostels with loans are finding it difficult to pay the installments.
He said that in most of the 4,500 hostels in the city, the occupancy rate has decreased by 40 to 50 percent, so the hostel owners have been hit hard.
According to the National Crime Records Bureau (NCRB), Kota is behind 50 cities in terms of suicide rate, although the city has been portrayed negatively, Naveen asserted.
Manik Sahni, hostel manager of Coral Park, said that the room rent has dropped from Rs 15,000 to Rs 9,000 and many hostels are vacant.
“The quality of education in Kota is very good compared to other cities. The environment is great for studying,” said Priyadarshini Panna, a NEET aspirant from Odisha.
“Kota offers the best facilities and environment for education and accommodation. That’s why I chose to prepare for NEET in Kota”, said another student from Jalore district.
It is the first time in decades that there has been a sharp decline in the number of students visiting the student hub here by 30-40 percent. Quota’s annual average number of students was close to 1.5 lakh in 2023 and this year it has come down to 85,000. It is claimed by industry stakeholders.
They said the Guidelines for Registration and Regulation of Coaching Centres, 2024, introduced earlier this year, prohibited the admission of students below the age of 16, they said.
A local auto driver, Ajay, who once transported 60 students daily, now manages only 20, is struggling to meet the installments of vehicles bought on loan.
“I had a large number of student shifts, earning money for my family and running happily but this year I am struggling to make ends meet as there are not enough coaching students in the city,” he said.