Fee reimbursement: Cabinet nod to release Rs. 600 crore

HYDERABAD: Transport Minister Botcha Satyanarayana is believed to have expressed concern at a Cabinet meeting here on Monday that the reputation of both the government and the Congress would suffer if funds for the fee reimbursement scheme were not released on time.

He insisted that at least 20 per cent of amount due for the current year be released forthwith as communicated recently to the professional college managements by the Group of Ministers (of which Mr. Satyanarayana is a member) and another 20 to 30 per cent in another three or four weeks.

After devoting considerable time to discuss fee reimbursement issue, the Cabinet agreed in principle to give release order for Rs. 600 crore immediately.

Top priority

Finance Minister Anam Ramnarayan Reddy explained that despite the financial crunch, the government was giving top priority to the scheme and had cleared the dues pending from 2008-09.

He said the option of giving bank guarantee to enable college managements raise loans for the balance amount was also under consideration.

Meanwhile, the Cabinet felt the need to counter criticism from rebel Congress leaders and opposition that were bent on gaining political mileage over the fee reimbursement and other issues.

Some Ministers pointed out that the late Y. S. Rajasekhara Reddy was well aware of the enormity of the burden on the State exchequer on account of welfare schemes and the financial constraints the government would face.

This worry had made him conceive ‘Rachabanda’ to plug leakages and improve delivery mechanism to benefit only the deserving.


The efforts to recover government’s due share in Emaar was mentioned by Industries Minister J. Geetha Reddy while Labour Minister Danam Nagender sought equal emphasis on recovery of amount due to the government from Rahejas.

Source : The Hindu

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