Held, impugned decision of the State illegal and unconstitutional being discriminatory and arbitrary and also suffers from the vice of non-application of mind. Preparation of a perspective plan and School Development Plan or for that matter, non inclusion of the locality in the said plans where the proposed school is to be established by the private management on permanent no grant basis, can be no ground to disallow the private management. Approach of the State to take a blanket decision and cancel or reject all the pending proposals, by no standards can stand the test of judicial scrutiny. Perspective plan or School Development Plan would be only a barometer of the requirement of educational institutions to be "funded by the State" at the macro level as well as micro level across the State and cannot be a condition precedent. Petitions allowed.