Hyderabad:For the first time, the state government will be using Central funds to reimburse students from the Scheduled Caste and Scheduled Tribe communities. For other students, from the Backward Classes (BC), economically backward classes (EBC) and minority communities, the government will continue to bear 100 per cent of the expenditure.
Official sources said the government was adopting the mandatory DBT model prescribed by the Centre, a mechanism that was not implemented by the previous BRS government which had cost the state nearly Rs 250 crore per year.
The Congress government has also decided to clear all fee reimbursement claims within the same academic year instead of carrying them forward. The scheme also comes with other conditions that students failing to remit the tuition fee to their institutions within seven working days will be liable for action under the provisions of law, including recovery of the amount under the Revenue Recovery Act. Such students will also face suspension of their monthly maintenance scholarship until the tuition fee is paid.
The reforms are aimed at ensuring “zero fee arrears”, timely release of scholarships and full utilisation of Central assistance.
To ensure transparency, the government will alert the respective colleges once the scholarship amount is credited into students’ bank accounts. Details of students who receive payments will also be uploaded on the colleges’ online login portals.
For SC community students, the state government will bear 40 per cent of the fee reimbursement amount while the Centre will contribute the remaining 60 per cent. In the case of Scheduled Tribe (ST) students, the state will release 25 per cent of the amount and the Centre will provide the balance 75 per cent.
Officials said the Centre had made it mandatory for states to convert fee reimbursement into the DBT mode to become eligible for Central funding. The DBT framework also requires states to release their share first, following which the Centre releases its contribution. Another condition is that the funds must be disbursed within the same academic year.
However, the previous BRS government declined to adopt the DBT model and continued the earlier practice of transferring fee reimbursement amounts directly to college managements. It also continued releasing funds for a particular academic year in subsequent years, resulting in a massive accumulation of pending dues.
By the time the BRS government demitted office in December 2023, fee reimbursement arrears had mounted to nearly `10,000 crore, with only partial payments being made since 2020.
Because of the state’s refusal to adopt the DBT model, Telangana lost nearly `250 crore in Central assistance every year during the BRS regime. The state continued to forgo Central funds even after the Congress assumed office, losing assistance during the 2024-25 and 2025-26 academic years. In 2025-26, Telangana lost Rs 276 crore in Central funds earmarked for SC and ST students.
Officials said Chief Minister A. Revanth Reddy was keen on ensuring that Telangana fully utilised the available Central assistance from the 2026-27 academic year and therefore decided to convert the scheme into the DBT model.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: deccanchronicle.com
