The fee reimbursement scheme, first launched in 2008 by then Chief Minister YS Rajasekhar Reddy, provides tuition support to students from weaker sections studying in private institutions.
Published Sep 15, 2025 | 11:18 PM ⚊ Updated Sep 15, 2025 | 11:18 PM
Representative image. Credit: iStock
Synopsis: Private professional colleges across Telangana called off an indefinite strike after the state government agreed to release ₹600 crore towards pending fee reimbursement dues. The strike, led by the Federation of Associations of Telangana Higher Institutions, had affected over 2,000 colleges and was aimed at pressing the government to clear arrears reportedly totalling ₹8,000–10,000 crore. The government has also announced the formation of a joint committee with college representatives to prevent delays in future reimbursements.
An indefinite strike by private professional colleges across Telangana, which began on Monday, 15 September, over pending fee reimbursement dues, was called off by Monday evening after the Congress-led state government agreed to immediately release ₹600 crore towards the arrears.
Deputy Chief Minister Mallu Bhatti Vikramarka, announcing the decision after protracted talks with college managements, said the government was sensitive to the interests of students and staff.
“Keeping the welfare of students in mind, we have decided to release ₹600 crore,” he said.
The strike was called by the Federation of Associations of Telangana Higher Institutions (FATHI), which represents over 2,000 colleges, including engineering, pharmacy, BEd, MBA, MCA, nursing, and degree institutions. FATHI said arrears have reportedly ballooned to between ₹8,000–10,000 crore.
Earlier, on 12 September, FATHI submitted a memorandum to Higher Education Council Chairman Prof V Balakista Reddy, demanding the release of at least ₹1,200 crore already budgeted.
The federation also proposed creating a “Fee Funding Bank” to streamline payments and a new model to prevent recurring arrears.
This is not the first such crisis. In October–November 2024, more than 1,800 private colleges shut down during a similar strike, boycotted semester exams, and forced the government to promise partial payments. At that time, arrears stood at ₹4,000–6,000 crore.
The fee reimbursement scheme, first launched in 2008 by then Chief Minister YS Rajasekhar Reddy, provides tuition support to students from weaker sections studying in private institutions.
Vikramarka said that though the fee reimbursement scheme is financially burdensome, the government is committed to continuing it as a key welfare initiative. He recalled that the scheme was first introduced under the Congress government in undivided Andhra Pradesh.
College managements welcomed the decision, saying the funds would significantly ease their financial strain. They expressed gratitude to Chief Minister A Revanth Reddy, the Deputy Chief Minister, and other ministers for addressing their concerns.
The government has also decided to constitute a committee with representatives from both the state and private professional colleges to resolve bottlenecks in clearing future reimbursements.
Instructions have been issued to Chief Secretary K Ramakrishna Rao to set up the panel within two to three days. Vikramarka blamed the previous Bharat Rashtra Samiti government for leaving behind huge arrears that have now become a burden.
(Edited by Dese Gowda)
