Telangana cuts scholarship budget by Rs 109 crore amid pending dues

The Telangana government reduced scholarship allocation by Rs 109 crore in the latest Budget, even as private colleges await over Rs 10,000 crore in pending dues, raising concerns among institutions and students dependent on fee reimbursement support

Hyderabad: At a time when private colleges and students are eagerly waiting for their long-pending reimbursement dues, the Telangana Congress government reduced the budget allocation for scholarships by Rs 109 crore.

Deputy Chief Minister Bhatti Vikramarka Mallu, who presented the State Budget in the Legislative Assembly here on Friday, allocated Rs 4,343 crore towards scholarships. This is Rs 109 crore less than the current financial year, when Rs 4,452 crore was allotted for scholarships, an important scheme that benefits around 25 lakh students to pursue their education in colleges.

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The government, according to private colleges, owes over Rs 10,000 crore to institutions from the academic year 2021-22. Given the dues, managements of professional colleges under the banner of the Federation of Associations of Telangana Higher Education Institutions (FATHI) called for an indefinite shutdown of colleges starting September 15, 2025. However, after talks with the government, which assured Rs 1,200 crore, nearly Rs 300 crore was released on October 1, 2025.

Later, during the Dasara festival, the colleges upped the ante against the government and decided to organise a ‘Chalo Hyderabad’ protest involving faculty and students. This protest forced the government to release nearly Rs 200 crore. According to private college managements, the government released Rs 500 crore towards fee reimbursement.

“Around Rs 2,400 crore is required annually to pay fee reimbursement to colleges. Although the government has been allocating funds in the budget, it has not been releasing the amount to colleges. We will again commence protests if the government does not release the arrears immediately,” said a private college management.