Banks refuse loans for fee reimbursement

State Govt Has Exceeded Borrowing Limit Of 14K Cr: SBI & SBH
Banks including State Bank of India and State Bank of Hyderabad have informed the state government that they will not release funds for the fee reimbursement scheme.

In fact, even if colleges apply for loans on government’s counter guarantee (as was planned earlier before the Supreme Court rapped the government), the banks will not sanction the loans. They say the state has exceeded its borrowing limit of Rs 14,000 crore. The banks stated on Tuesday that they would approve loans only if the college managements agree to mortgage their property.

According to sources, the state is currently funding several of its welfare schemes including major ones like Jalayagnam and Rajiv Gruha Kalpa using borrowed funds. As the state government has not paid up even the first quarter of interest to the banks so far, the banks (SBI & SBH) on Tuesday wrote to the government and sent a copy to college managements, stating their decision not to sanction further loans to the government. The government has borrowed most of the funds from the Reserve Bank of India (RBI).

The banks’ decision not to release funds for the scheme has come as a severe blow to the state government which was asked by the Supreme Court on Monday to release arrears under the fee reimbursement scheme immediately. The state will now have to find ways to raise Rs 3,500 crore by the end of the month to comply with the SC verdict.

Sources said that the government is now weighing various options to raise funds. “We will now have to mortgage government land. If the colleges do not give time till April for the state to release funds, we will be left with no option but to ask for Centre’s help to run the scheme,” said an official. During the next financial year, over Rs 7,000 crore will be required to fund the scheme.

Meanwhile, the college managements have refused to mortgage their property to run the scheme even as the state is trying for an out-of-court settlement with the managements, wherein the latter will be asked to approach the banks directly for funds. But colleges are not convinced, although they were agreeable to the idea until the SC verdict came.

“Now, even the banks have informed us that they will not be able to release money as the government has exceeded its credit limit. We cannot mortgage our personal property for the sake of sustaining the scheme. None of the colleges would agree to the current proposal of mortgaging the college property,” said Ramesh Nimmatoori, president, Consortium of the Andhra Pradesh Engineering and Professional College Managements.

The government and the college managements have scheduled a meeting on February 16 to discuss the issue.

“The government had earlier decided that it would release half of the amount immediately and another half before April. Without the bank loan, even this will not be possible. Hence, now, we have no option but to close down colleges after February 16,” said Ramesh Nimmatoori.

Even governor E S L Narasimhan has taken a keen interest in the scheme and has asked the BC welfare department to submit a detailed report on the same. He reportedly told chief secretary S V Prasad that the government should try for central help to sustain the scheme for the time being.

The governor also reportedly said that mortgaging the government land should be considered as the last option as it would send a wrong signal to people. “I will also use my good offices to get funds from central government,” Narasimhan reportedly said. NOT CREDIT-WORTHY

Kiran Kumar government is in a real bind as it can neither pay fees on its own nor it can stand guarantee for loans to colleges as proposed before the SC struck down the move. Governor Narasimhan was said to have asked the state to move the Centre for help, and offered to use his good offices for it.
vialerg wiki graviditet.site vialerg pollen
nix 1 shampoo 59 ml nix fnat behandling nix advance
dexamethason dosis dexamethason hund dexamethason 0 5
rigevidon kvalme rigevidon 30 micrograms rigevidon breast growth
zoloft used for kobhvorlangtid.site zoloft yahoo
More News
JEE, NEET: List Of Top Medical, Engineering Colleges In India
With the National Institutional Ranking Framework (NIRF), the Education Ministry ranks top institutions of higher education under different categories. These include categories for engineering and medical colleges, among others. Admission to undergra...
MHT CET Could Be Held By 1st Week Of August: Maharashtra Minister
The CET or the Common Entrance Test for professional courses after Class 12th in Maharashtra could be held in the last week of July or first week of August, Higher and Technical Education Minister Uday Samant said here on Tuesday. Speaki...
Common Law Admission Test (CLAT) 2021 Date Announced
The Consortium of National Law Universities has announced the Common Law Admission Test (CLAT) date. CLAT 2021 will be held on July 23. The admission test will be held between 2 pm and 4 pm for both undergraduate (UG) and postgraduate (PG) programmes...
UP Board Class 10, 12 Result 2021: Guidelines Soon, No Merit List This Year
Uttar Pradesh Chief Minister Yogi Adityanath on Sunday said that the Board of Secondary Education will soon issue the guidelines and prepare the results of Classes 10 and 12 students. In the absence of examinations, the Board will not release a ...
VITEEE Result 2021 Declared; Direct Link
The Vellore Institute of Technology has declared the VITEEE result 2021 or VIT Engineering Entrance Examination Result 2021 on the official website– vit.ac.in. Those who have appeared in the examination need to enter their application number an...
NIFT 2021 Final Result Announced For BDes, Other Programmes
The National Institute of Fashion Technology (NIFT) has announced final results for admission to BDes, BFTech and other programmes. Students who appeared in the interview round after clearing the preliminary entrance examination can visit the officia...
States Gear Up For Entrance Exams After Cancelling 12th Board Exams
As Class 12 board exams have been cancelled by most of the states and the two central boards – CBSE and CISCE – the next step for the students is taking admission to undergraduate courses. Some of the top universities – DU, JNU, Jam...
Maharashtra MHT CET 2021: Registration Begins Today, Know Details
Registrations for the Maharashtra Common Entrance Test (MHT) CET 2021 will begin today, June 8, Higher and Technical Education Minister Uday Samant said. The application forms will be available on the official website, mhtcet2021.mahacet.or...
ICSI Releases Revised Schedule For CS June 2021 Exam
Institute of Company Secretaries of India (ICSI) has released the revised schedule for CS June 2021 exam. The Institute, on May 4, had notified that the CS June exams were postponed. The council has released the exam schedule for the Foundation progr...
ICAI Postpones CA Foundation Exams, Announces Schedule For Inter, Final Exams
The Institute of Chartered Accountants of India (ICAI) on June 5 postponed CA Foundation exams and announced the date sheets for CA Intermediate and CA Final exams scheduled for July. The CA Foundation exams will now begin on July 24. The decision to...