Business has slowed down for coaching centres and hostels in Kota following negative publicity over student suicides, new guidelines regulating coaching centres and the expansion of coaching brands to other cities, according to industry stakeholders.
The number of students in Kota has fallen to 85,000 to 1 lakh this year from the usual 2 to 2.5 lakh, reducing the annual revenue to Rs 3,500 crore from Rs 6,500 to 7,000 crore, they said.
Despite the setback, stakeholders remain optimistic about the credibility of the Kota coaching model and its environment, that is absent in other cities.
Kota's educational system and environment are unmatched and will attract students back next session, which will compensate for the decline, Govindram Mittal, Zonal Chairperson, United Council of Rajasthan Industries said.
He said that industrialists are also looking at alternative opportunities, with plans to establish Information Technology (IT) hubs in the city, modelled after Bengaluru.
Earlier this year, the Karnataka government approved a Bill seeking to reserve 50 per cent of management positions and 75 per cent of non-management positions in private sector for locals, drawing criticism from across the industry.
Industrialists here have approached companies based in Bengaluru to shift base to Kota and after a nod from these companies, land for IT sectors have been earmarked under the direction of Lok Sabha speaker and Kota-Bundi MP Om Birla, Mittal said.
