Fee reimbursement: Engineering College Managements Agree To Bank Loan Formula

Posted On: 14/02/2011 Updated On:

Engg College Managements Agree To Bank Loan Formula

Hyderabad: Tension between college managements and state government on the fee reimbursement issue eased a bit on Sunday with a majority of the colleges agreeing to take loans to fund the education of students. College managements have communicated to the government that they would take bank loans (on the government's counter guarantee) and pay the interest for the same. They, however, demanded that the government release the entire dues by mid-April.

According to the new proposal put forward by the engineering college managements, the government would pay 50 per cent of the fund arrears within the coming week and the rest would be taken as loan from banks on government's counter guarantee. The government would pay the banks directly.

Engineering college management representatives on Sunday said that they were ready to take bank loans if the government agrees to pay back the money within a period of three months. "We do not want to put pressure on the government. We are willing to take bank loans and pay the interest for two months if the government agrees to release the funds by April second week,'' said Ramesh Nimmatoori, chairman of the striking Consortium of Private Engineering and Professional College Managements' Association.

The government had asked the managements to wait for six months for the release of the entire amount under the scheme. "We cannot wait for so long as several colleges which had taken bank loans on 24 per cent interest have been issued eviction notices from banks,'' Nimmatoori said.

A meeting would be held on February 16 to convince the government to release funds by April.

Meanwhile, the managements would also ask the affiliating universities to give them concession on the yearly development fee that is levied from them. "Each year we pay Rs 2,000 per student to the universities under various categories, including infrastructure development. But this year we are planning to ask the universities to allow us to pay just Rs 1,250 per student. This would cover the interest which the managements will have to pay the banks,'' said a management representative.

The colleges are also sceptical if the government would release 50 per cent of the funds immediately. "Officials had stated that they would pay 20 per cent of the funds immediately and the rest in instalments. We want 50 per cent of the funds now. Only then can the bank loan plan work,'' said Nimmatoori.

The managements will, however, not call off the strike till the government agrees to pay the nodal banks including SBI, SBH and Andhra Bank within two months.

More News

Andhra Pradesh Engineering Common Entrance Test (AP ECET) 2026

Andhra Pradesh Engineering Common Entrance Test (AP ECET) 2026 The Andhra Pradesh Engineering Common Entrance Test (AP ECET) 2026 is an important exam for students aiming for lateral entry into the second year of B.E., B.Tech, and B.Pharmacy in Andh...

Posted On: 06/05/2026

AP POLYCET Result 2026

AP POLYCET Result 2026 | Andhra Pradesh 2026 Result | Andhra Pradesh Polytechnic Common Entrance Test 2026 Result The State Board of Technical Education and Training (SBTET), Andhra Pradesh, conducts the Polytechnic Common Entrance Test (AP POLYCET...

Posted On: 04/05/2026

TG EAPCET 2026 Notification | Exam Date, Apply Online, Eligibility, Syllabus & Results

TG EAPCET 2026 Notification | Exam Date, Apply Online, Eligibility, Syllabus & Results The Telangana State Engineering, Agriculture, and Pharmacy Common Entrance Test (TG EAPCET) 2026 stands as one of the most significant entranc...

Posted On: 26/04/2026

AP ECET 2026 Notification Exam Date, Apply Online, Eligibility, Syllabus & Results

Posted On: 26/04/2026

Uttarakhand Board Results 2026 Class 10 & 12 | UK Board Result Date, UBSE Results

UTTARA KHAND CLASS 10th AND CLASS 12th RESULT 2026 The Uttarakhand Board of School Education (UBSE) is currently finalizing the evaluation process for the High School (Class 10) Examination 2026. Following the con...

Posted On: 26/04/2026

AP EAPCET 2026 Notification, Exam Date, Application Form & Eligibility Details

AP EAPCET 2026 Andhra Pradesh Engineering, Agriculture & Pharmacy Common Entrance Test AP EAPCET 2026 Schedule Announced; Registration Underway, Exams Begin May 12 The Andhra Pradesh Engineering, Agriculture and Pharmacy Common Entrance...

Posted On: 26/04/2026

Andhra Pradesh SSC Board Results 2026

Andhra Pradesh SSC Board Results 2026 The Board of Secondary Education, Andhra Pradesh (BSEAP) is in the final stages of evaluating answer scripts for the SSC (Class 10) examinations held in 2026. With the exams concluded in March, the resul...

Posted On: 26/04/2026

Jharkhand Academic Council (JAC) 1st & 2nd Year Result

Jharkhand Academic Council (JAC) 1st & 2nd Year Result The Jharkhand Academic Council (JAC) will release the JAC Intermediate 2026 results in late April 2026 for the Science, Commerce, and Arts streams, following the evaluation of answer...

Posted On: 26/04/2026

NMIMS Unveils Disability Inclusion Policy with Mirae Asset Foundation Support

NMIMS Unveils Disability Inclusion Policy with Mirae Asset Foundation Support Mumbai, April 2026: SVKM’s NMIMS, with support from the Mirae Asset Foundation, announced the release of its policy guidance note, “Enabling Equity for...

Posted On: 24/04/2026

NEWS JAC CLASS 12 RESULTS 2026

NEWS JAC CLASS 12 RESULTS 2026 The JAC Class 12 (Intermediate) Results 2026 for Science, Commerce, and Arts are currently in the final stages of processing. Following the completion of the theory examinations on February 23, 2026, the Jharkh...

Posted On: 24/04/2026

View all

Admission Open

ICFAI University (IFHE)

Hyderabad, Telangana

BBA, BCA, L.L.B, LLM, B.Arch, B.Sc, BA, MA, Ph.D, EMBA, BA LLB (Hons.), BBA LLB (Hons.), Ph.D in Law, Ph.D, PG Diploma, Ph.D (Economics), B.E / B.Tech

Apply Brochure