HYDERABAD: A majority of private educational institutions have been pushed into a tight corner and have little hope that the government will release money to reimburse students’ fees in view of the demonetisation that is adversely affecting the state’s own coffers.
Even the option of borrowing from external sources to meet monthly expenses has dried up. Staff salaries are the first to be targeted and college managements have in fact expressed doubts about their ability to pay salaries of teaching and non-teaching staff.
N. Goutham Rao of the Telangana Private Engineering and Professional Colleges Management Association said that the state government had released Rs 300 crore recently out of the total Rs 2100 crore that is due as fee reimbursement. The next instalment was to follow soon. “In this dicey situation, we cannot approach the government about its promise. A good number of colleges are taking loans from known sources to meet monthly expenses, including salaries. But, in the present situation, nobody has sufficient cash to meet their expenses, leave alone lending to others,” he said.
According to Mr Rao, a majority of the 250 engineering colleges in TS spend Rs 20-50 lakh on wages for teaching and non-teaching staff.
The Private Degree and PG Colleges Association echoed his views. Joint secretary, Gouri Satish, said that they are spending sleepless nights due to the financial worries.
“College managements had pinned their hopes on quick release of fee reimbursement arrears. We have no idea whether the government will release the amount now,” he said.
