Students from economically backward classes (EBCs) and backward classes (BCs) relying on the fee reimbursement scheme will be adversely affected if the proposed steep fee hike in engineering colleges comes into force from the current academic year 2012-13. The state government is drawing up plans to bear partial fees for these students while funding the entire fees of students from scheduled castes and scheduled tribes in order to reduce its financial burden on account of the fee hike. Students from the EBC and BC categories constitute 70 per cent of the total students taking admissions in engineering courses who rely on the fee reimbursement scheme, which is being implemented by the government since 2009.
The social welfare department, the nodal agency to implement the fee reimbursement scheme, has estimated an additional burden of `150 crore on the state exchequer on account of the fee hike. It cautioned of an increase in the financial burden in the coming years, as only 130 engineering colleges have sought the fee hike and many more may follow suit in future. There are over 700 engineering colleges in the state.
The government has allotted Rs 3,500 crore for the scheme this year in the budget, but Rs 2,500 crore has gone into paying the arrears of the previous academic year. The government requires another Rs 3,500 crore to fund the scheme this year. The officials have proposed to bear the entire fees for SC and ST students, besides proposing an “upper ceiling” on the amount to be paid to BC and EBC students.
Chief Minister N. Kiran Kumar Reddy is expected to discuss these proposals with officials of the finance and social welfare departments on Monday.