Bhatti Seeks FRBM Relaxation on Young India Education Loans
The total cost of the project has been estimated at Rs 21,000 crore for constructing these new schools and another Rs 9,000 crore for strengthening existing junior colleges, degree colleges, and technical and professional institutions.
Hyderabad: Deputy Chief Minister and finance minister Mallu Bhatti Vikramarka on Thursday urged the Centre to exempt the loans being raised for the construction of Young India Integrated Residential Schools from the limits imposed by the Fiscal Responsibility and Budget Management (FRBM) Act. The government expects to borrow a total of Rs 21,000 crore.
Bhatti submitted a memorandum to Union finance minister Nirmala Sitharaman in Delhi on this issue, seeking the Centre's special financial assistance for the ambitious education programme. He also pressed for restructuring of high-interest loans contracted by the previous BRS government to ease the state’s debt burden.
The finance minister explained that the state government plans to set up 105 state-of-the-art Integrated Residential Schools under the Young India model, intended to provide quality education to students belonging to BC, SC, ST and Minority communities.
The total cost of the project has been estimated at Rs 21,000 crore for constructing these new schools and another Rs 9,000 crore for strengthening existing junior colleges, degree colleges, and technical and professional institutions.
To mobilise this Rs 30,000 crore investment, the state has proposed to create a special purpose corporation for raising loans. The Deputy Chief Minister urged the Centre to exclude such borrowings from the FRBM ceiling, arguing that they represent long-term capital investment in human resources rather than routine expenditure.
While successive governments sanctioned residential schools for disadvantaged groups, he said many of them continue to operate in rented premises or cramped facilities without adequate infrastructure. The new initiative aims to bridge this gap with modern, technology-enabled campuses designed to serve as model institutions.
Each campus will cater to 2,560 students from Classes 5 to 12, directly benefiting 2.7 lakh children and indirectly supporting 4 lakh more through linkages with 5,250 neighbouring government schools. He also urged Sitharaman for revision of customs duties on palm oil to protect farmers engaged in its cultivation.