The managements of colleges on Wednesday announced that their institutions will be shut down from February 24th after rejecting the state government's offer of paying the fee reimbursements of Rs. 1000 crores initially, and the balance of Rs. 2400 crores in 3 instalments.
The managements remained firm in their decision that the state government pay the entire amount as directed by the Supreme Court, but the government expressed its inability to do so.
The Group of Ministers led by Transport Minister Botsa Satyanarayana told the college managements that they will be paid Rs. 1000 crores only, and the balance will be paid in 3 instalments – April/May, June/July and September/October.
The leaders of the consortium of colleges in the 3 regions were united in informing the media persons at the Secretariat on Wednesday that a few colleges had fallen into debt traps and were unable to recover.
The banks, they said, were demanding their property and government's counter guarantee for raising loans, which the colleges refused.
They requested the parents and the students to bear with them.
During the talks they held with the Group of Ministers at the Secretariats on Wednesday, it was pointed out the government was earmarking funds for several welfare schemes.
The fee reimbursement was started by former Chief Minister Y S Rajasekhara Reddy with good intent, but the current government could not include their payments in the Rs. 1 lakh crore budget which was deplorable, the management leaders said.
The college managements were angry that the government was paying such a paltry amount as the first instalment.
The colleges from the 3 regions were represented by respective managements.