1.49 lakh scholarship applications pending despite Rs 300 crore allocation for Telangana minorities

Educationists caution that the delay is likely to push up dropout rates, particularly among Muslim students, further marginalising them in higher education.

Published Aug 30, 2025 | 9:00 AMUpdated Aug 30, 2025 | 9:00 AM

Scholarship

Synopsis: A coalition of prominent Muslim leaders and organisations wrote an open letter to Telangana Chief Minister Revanth Reddy, urging the immediate release of Post-Matric Scholarships for minority students. Several students who have completed their degrees are unable to collect their certificates because institutions require fee clearance before releasing the documents.

A coalition of prominent Muslim scholars, community leaders, and civil society organisations wrote an open letter to Telangana Chief Minister Revanth Reddy, urging the immediate release of Post-Matric Scholarships for minority students.

The appeal comes amid mounting concerns over the prolonged delays in disbursement under the Reimbursement of Tuition Fee (RTF) scheme, which is leaving thousands of students stranded academically and financially.

The letter, endorsed by community leaders such as Moulana Khalid Saifullah Rahmani of the All India Muslim Personal Law Board (AIMPLB), SQ Masood (ASEEM) and Mohammad Faraz Ahmed (SIO), along with activists, highlighted the urgent need for intervention.

The signatories, in the letter dated 12 August, warned that the delay in releasing scholarships has triggered a chain reaction: Mounting debts, students being forced to discontinue their studies, and, in several cases, colleges withholding original certificates due to unpaid fees.

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Only ₹41.86 crore of ₹300 crore utilised

The gravity of the problem becomes clear through official data obtained under the Right to Information Act (RTI) from the Minorities Welfare Department.

Between 2020-21 and 2024-25, over 7.5 lakh applications for fee reimbursement were received. However, sanctioned applications have drastically fallen. In 2020-21, 1.15 lakh students benefitted from the scheme, but by 2023-24, the number had collapsed to just 40.

For 2024-25, as of January 2025, not a single application had been sanctioned.

The backlog is equally alarming. As of early 2025, more than 1.49 lakh applications remain pending. Budgetary figures reveal that while allocations have increased — from ₹200 crore in 2022-23 to ₹300 crore in 2024-25 — the actual expenditure and disbursal to students have fallen sharply.

By late January 2024-25, only ₹41.86 crore had been spent, covering a fraction of the sanctioned commitments. Officials reportedly admitted in RTI replies that, though budgets were released to district offices, bills were pending clearance at the Finance Department.

This mismatch between allocations and disbursals has left students in distress. Several students who have completed their degrees are unable to collect their certificates because institutions require fee clearance before releasing the documents.

Withheld certificates cause issues

Without certificates, students cannot pursue higher studies or apply for jobs, resulting in lost years and missed opportunities. Organisations such as ASEEM and the Students’ Islamic Organisation (SIO) reported a steady stream of complaints from affected students.

In their letter, the community leaders have placed three demands before the government:

  • Immediate release of pending scholarships,
  • A transparent and time-bound mechanism for disbursement, and
  • The creation of an emergency fund to clear existing backlogs.

They also asked the chief minister to direct colleges not to withhold original certificates, noting that such practices were worsening the burden on students already struggling with financial insecurity.

23-year-old Abu Savoor has been facing issues because of the fee reimbursement. He enrolled for an Engineering degree in Hyderabad in 2019 under a minority scholarship. However, despite completing his education i 2023, he is still stuck without his original certificates.

“I have received my degree certificates. However, they are yet to return the original 10th-grade and 12th-grade documents that I submitted at the time of my admission. The state has not released the fee reimbursement for the last two years of my college. The administration, meanwhile, is asking me to return and collect the documents once the state releases the funds,” he told South First.

“While I am currently working at a local company in Hyderabad, this is not where I want to remain. I’m hoping to step out of the city and try with bigger companies. However, I remain stuck as long as the college has my documents with itself,” he added.

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‘Delays may increase dropout rates’

The issue carries political overtones as well. During the 2023 election campaign, the Congress party pledged to resolve delays in scholarships for minority students.

However, more than a year into its tenure, the problem persists. Critics argue that this failure not only undermines trust but also risks reversing progress in educational access for minority communities.

Educationists caution that the delay is likely to push up dropout rates, particularly among Muslim students, further marginalising them in higher education.

They point out that the state, which prides itself on expanding opportunities in IT, healthcare, and life sciences, risks leaving behind a significant section of its youth if such gaps persist.

The Chief Minister’s Office has received the representation, and copies of the letter have also been handed to the Minority Welfare Minister, the Principal Secretary (Finance), and the Secretary of the Minority Welfare Department.

While the government has yet to make a formal statement, the pressure from scholars and civil society is expected to intensify if the issue remains unresolved.

(Edited by Muhammed Fazil.)

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