Tuesday, January 15, 2013

Fee reimbursement may add to state burden

HYDERABAD: State government's fee reimbursement woes are far from over. With the Gross Enrolment Ratio (GER) of the state set to increase by over 3.5%, as per the government's own estimate next year, the scheme would cost at least Rs 5,500 crore in 2013. Also, the 30% fee hike proposed by private colleges is also expected to increase the burden on the government by over Rs 1,000 crore. Currently, the government sets aside Rs 4,200 crore for the scheme every year.

According to calculations, GER (percentage of students within the age group of 18 to 23 taking admission in post-metric courses in the state) is expected to increase from 11.5% to 15% by 2013-14 academic year. This would mean that the number of students who take admissions would increase by at least two more lakhs in Intermediate and under-graduation courses.

To top it all, a total of 670 engineering and pharmacy colleges have asked for a fee hike from Rs 35,000 to Rs 52,500 starting next academic year. About 71% of the students who take admission in private colleges are eligible for fee refund under the scheme, officials said.

Over 4 lakh students are doing traditional under graduation courses while another 3.5 lakh professional courses in the state now. Over and above this figure are the 17 lakh students who will join junior colleges (both first and second year) a year. The fee reimbursement scheme benefits students who take admission in private Intermediate, under graduate and post-graduate colleges.

The babus in Secretariat have pressed the panic button thinking of the financial trouble the fee reimbursement would add to the exchequer next year. "There is a lot of pressure from private colleges since the Supreme Court had issued an order not to delay the fee reimbursement scheme," said an official.

Officials are worried as the proposed strike by students over fee reimbursement from January 21 may derail the academic year of thousands of students. "We are worried that the impasse is going to continue even in the coming year," said a senior official of the social welfare department, in-charge of the scheme.

Officials of higher education department said that they are facing an unusual dilemma in terms of balancing the enrolment rates and the money drain through the scheme. "On one hand, the government is expected to increase the number of students opting for higher education and on the other it cannot afford it," said a senior official of the higher education department who added that the scheme requires modifications to sustain.

The number of students getting enrolled in professional colleges increased by over 15% in the past two years largely due to fee reimbursement scheme, officials said. "The state government has put a cap on reimbursement scheme and would release funds for students from poor socio-economic backgrounds. However, the growing enrolment rate and demands of the private colleges are to be taken into consideration while setting aside funds for the scheme. And this work is still under process," said M G Gopal, principal secretary, higher education department.

Source : TOI

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