Telangana's fee reimbursement scheme aims to make education more accessible for students from marginalised communities.
Published Oct 17, 2024 | 7:00 AM ⚊ Updated Oct 17, 2024 | 9:06 AM
The dream of higher education in professional programmes – engineering, medicine, business administration, pharmacy, nursing etc – was made easier in Telangana by the state government’s fee reimbursement programme.
The aim of the initiative first started in the undivided Andhra Pradesh in 2008, is to support students from Scheduled Castes, Scheduled Tribes and Backward Classes to pursue a professional career by supporting their fees.
This became necessary as private colleges were encouraged to teach professional courses in the 1980s. By 2009-10, the fee structure even for the so-called “government seats”, which were cheaper, was ₹ 27,000 per annum. Fees for the management quota were three times that amount, making it hard for students from poor families to study professional courses.
Under the fee reimbursement scheme, the state government reimburses private colleges the fees of students admitted to these courses. In recent years, however, delays in these payments have put a severe financial burden on private colleges. Regular operations of these colleges have been affected, and discontent has been rising among both educators and students.
The Telangana Private Degree Management Association (TPDMA), Telangana Engineering and Professional Colleges’ Association (TEPCA), and the Professional Accredited College Association (PACA), have all demanded immediate payment of arrears, which now amount to about ₹6,000 crore; payments are due since 2021.
The college associations warn that without funds, many institutions may be forced to shut.
On Monday, 14 October, TPDMA announced an indefinite strike. Classes will be halted until the government clears the dues.
“Lack of cooperation from staff and building owners has meant that we are left with no choice. We are going on indefinite bandh until the government fulfills its commitment,” said Bojja Suryanarayana Reddy and Yada Ramakrishna, TPDMA’s president and secretary.
Manohar Reddy of the Telangana Engineering and Professional Colleges’ Association said fees were pending for the last four years. He said the previous BRS government failed to prioritise this issue, and the current Congress government is following suit, delaying the processing of the fee reimbursement scheme.
“For private, unaided institutions, particularly colleges teaching professional courses, tuition fees are the primary source of revenue. Without these funds, colleges are unable to pay salaries on time or cover operational expenses,” he told South First. “This lack of financial support has led to a decline in the quality of education and the overall administration of these institutions.”
Manohar Reddy pointed out that the government owes nearly ₹6,000 crore to various educational institutions, including junior, degree, engineering, polytechnic, and nursing colleges. The outstanding dues date back to 2021, and continue to accumulate.
He criticised the government for allegedly intimidating private colleges by raising concerns about the quality of education and threatening to take action against them instead of addressing the core issue of fee reimbursement.
“This indirect pressure discourages colleges from approaching politicians or seeking assistance in their financial struggles,” he said.
Engineering institutions in Telangana, especially autonomous and affiliated colleges, rely heavily on government funding. There are caste-based reservations, and the bulk of students admitted under such reservation are funded through the government reimbursement scheme.
“With 50-60% of their student intake coming from reserved categories, these institutions expect about 40-60% of their revenue from government reimbursements. The direct collection of tuition fees from general category students covers only 50-60% of their total revenue. Although these policies have benefited Indian students, they have created a financial burden for engineering institutions, forcing them to depend on government scholarships for a significant portion of their income,” explained Ravi Kumar, chairman, Rural Engineering College Management Associations told South First.
Chronic delay in fee reimbursement in the past decade has meant financial challenges for colleges that teach professional courses. There is no guarantee of timely payment, and staff salaries too cannot be disbursed in time. There is little money for infrastructure, technology, research, or development.
Ravi Kumar said ongoing delays have stunted the growth of institutions. There is just one private university in the state that has been ranked 98th in the National Institute Ranking Framework (NIRF), 2024. No other college from the state features in the first 100 of that ranking.
There are those who propose that the best way to emerge in the higher ranks would be to transition to private universities with greater control over finances; that argument is offered since caste-based reservations and government fee reimbursements do not apply to private universities.
“Private degree colleges in our state are facing severe challenges, particularly since 2014 (the year Telangana was formed), with issues worsening each year. The most pressing problem is the lack of fee reimbursement for students. For the past three years, these colleges have not received the promised financial support from the government, putting immense pressure on their operations,” said Dr. Bala Krishna Reddy, president of the Telangana Private Degree and PG Colleges Management Association (TPDMA).
He said colleges are struggling to pay salaries, maintain facilities, and upgrade educational resources. The association stressed the urgent need for government intervention to sustain these institutions.
The Telangana government allocated around ₹2,500 crore annually for fee reimbursement, but 40% (about ₹1,000 crore) goes to non-professional courses like degree and postgraduate programmes.
Though the scheme was initially meant for colleges teaching professional courses, some degree courses like like BSc nursing, BA Communications, etc are also included in this.
Fee reimbursement dues from 2021-2024 stand at ₹3,000 crore, with only ₹750 crore released. The delay has led some colleges to be classified as Non-Performing Assets (NPAs), affecting over 12 lakh students and around 4.5 lakh teachers.
“In Telangana, nearly seven lakh students are enrolled in traditional courses, most of whom come from economically weaker sections. These students are unable to pay the fees without the reimbursement from government,” he said.
Manohar Reddy of the Telangana Engineering and Professional Colleges’ Association stated that their representatives met Chief Minister Revanth Reddy on 13 July at a programme at the Jawaharlal Nehru Technology University, Hyderabad, to discuss the issue of pending dues in fee reimbursement.
The CM suggested a one-time settlement to resolve the accumulated dues from the previous BRS government’s tenure, citing financial constraints and existing promises that the government is struggling to fulfill. However, the association strongly opposed the idea of a one-time settlement.
“We cannot accept a one-time settlement because we did not give a loan to the government,” said Manohar Reddy. “The fees were determined based on a review by a committee led by a retired Supreme Court judge, with inputs from professionals, accountants, and other officials. This fee structure was set according to the expenditure incurred by each college.”
He explained that many private colleges had secured loans based on their projected income, which includes the government’s commitment to pay the reimbursements. With delays in payment, institutions face severe financial challenges. They struggle to pay staff salaries and repay loans.
“Our primary demand is for the government to clear all the pending dues immediately and ensure that reimbursements are settled by the end of each academic year,” he said.
He added that colleges show a full list of faculty during inspections, but soon afterwards, faculty leave because of the financial instability of these institutions.
Manohar Reddy noted that Telangana currently has 176 engineering colleges, with around 12.5 lakh students applying for scholarships every year.
The Telangana Engineering and Professional Colleges’ Association (TEPCA) noted that the delay in fee reimbursement had severely affected the livelihoods of approximately 2.5 lakh employees who rely on timely salaries from these institutions.
“These delays in the fee reimbursement payments are severely impacting livelihoods of employees in these institutions, who rely entirely on their monthly salaries,” TEPCA stated in a letter to the Chief Minister.
The Association noted that around 2.5 lakh people are employed in the state’s engineering and pharmacy colleges alone.
TEPCA noted that many private engineering colleges were initially established by highly qualified individuals in the early 2000s with a commitment to serving society and creating job opportunities for graduates.
However, since the introduction of the fee reimbursement scheme in 2008 during the term of the YS Rajashekhar Reddy government in united Andhra Pradesh, these colleges have faced financial difficulties. Successive governments have struggled to manage the burden of the scheme. Significant dues remain unpaid.
The statement from the association said nearly all engineering, pharmacy, MBA, MCA, junior, degree, and B.Ed. & D.Ed. colleges in Telangana are grappling with financial challenges.
“It is no exaggeration to say that some of these institutions are struggling even with basic maintenance tasks, like paying electricity bills and managing transportation services. Outstanding dues for university fees, bank loan repayments, property taxes, and PF contributions have accumulated, attracting penalties,” TEPCA stated.
TEPCA suggested that the government consider disbursing the fee reimbursement funds in quarterly installments from the current academic year onwards, with fixed timelines for these payments, to reduce the financial burden on both the government and the institutions.
The Professional Accredited College Association (PACA) noted that most autonomous engineering institutions in Telangana rely on the government for 40-50% of their revenue through the fee reimbursement scheme. Revenue generated from direct tuition fee collections only accounts for 50-60% of the total expected income.
“Institutions favoured by students with Engineering Agriculture and Medical Common Entrance Test (EAMCET) ranks below 10,000 receive 100% fee reimbursement from the government. This leaves them fully dependent on these scholarships for their financial sustainability. While the fee reimbursement scheme benefits many students, it has become a burden for engineering colleges in the state,” PACA said in its statement.
“Engineering institutions in Telangana have faced financial challenges for over a decade due to substantial delays in fee reimbursement disbursements. Payments are often postponed for several years, lacking any guarantees for timely release,” stated PACA.
Operating with significantly reduced budgets, most institutions allocate their revenue primarily for staff salaries, neglecting investments in infrastructure, technology, and research. Many institutions are struggling to pay faculty salaries when direct tuition collections dwindle.
Over the last decade, Telangana engineering colleges have produced over one million graduates, supplying the workforce needed for the rapidly expanding IT industry. Between 2014 and 2023, IT employment surged from 323,396 to 905,715, with most of these employees being graduates from autonomous engineering colleges in Telangana.
“Without necessary government support, all autonomous colleges risk closure and may need to explore alternative survival strategies. Timely disbursement of student scholarships is crucial for enhancing financial stability and fostering growth in Telangana’s engineering institutions,” emphasised PACA.
With private engineering colleges accounting for over 90 percent of annual engineering admissions, there is sore need for smoother collaboration between the government and the private professional higher education sector.
The higher education sector faces a crisis globally, with student loans mounting in the United States, and the government planning loan waivers. In the UK, there is a cap on fees for UK students, and the fees charged from foreign students is not subject to this cap.
Universities in the UK use the fees from Indian students to cut their deficit, according to a report.
(Edited by Rosamma Thomas)
