Key Highlights:
- Nearly 1,500 private professional colleges across Telangana have shut down indefinitely over Rs 10,000 crore in pending fee reimbursement dues under RTF and MTF schemes
- The Telangana colleges strike affects thousands of students across engineering, pharmacy, MBA, and degree programs, with universities urged to defer examinations
- FATHI demands immediate release of Rs 5,000 crore and has planned mass protests including a rally of 30,000 at LB Stadium on November 8 and a Long March on November 11
Opening Overview
The Telangana colleges strike has brought academic operations to a standstill for thousands of students as the state government grapples with pending fee reimbursement dues exceeding Rs 10,000 crore. Private professional colleges across Telangana have launched an unprecedented indefinite shutdown, with nearly 1,500 institutions including engineering, pharmacy, MBA, and degree colleges closing their doors. The Telangana colleges strike marks one of the largest educational disruptions in the state’s history since its formation in 2014. Orchestrated by the Federation of Associations of Telangana Higher Institutions (FATHI), the Telangana colleges strike escalated after the government failed to meet a November 1 deadline to release Rs 900 crore promised under the Reimbursement of Tuition Fee (RTF) and Maintenance Fee (MTF) schemes.
College managements allege that while the government assured Rs 1,200 crore before Diwali, only Rs 300 crore was disbursed, leaving institutions unable to pay staff salaries and forcing some to withhold students’ certificates. With Telangana’s education sector allocated Rs 23,729 crore in the 2025-26 budget, representing approximately 8.3% of the state’s total Rs 2,84,837 crore expenditure, the mounting arrears highlight significant fiscal pressures on welfare schemes.
Financial Crisis Deepens
- The financial standoff centers on Rs 10,000 crore in accumulated dues spanning four academic years under RTF and MTF schemes
- College managements demand Rs 5,000 crore, half the total arrears, to withdraw the Telangana colleges strike
The financial deadlock at the heart of the Telangana colleges strike centers on Rs 10,000 crore in accumulated dues under schemes designed to support economically disadvantaged students pursuing higher education. The RTF and MTF schemes, introduced during the united Andhra Pradesh era and continued after Telangana’s formation, provide full tuition fee reimbursement for post-matric students in professional courses, benefiting students from SC, ST, BC, and minority communities.
According to FATHI representatives, the total arrears span four academic years, including two years from the previous BRS government and two years from the current Congress administration. The Telangana colleges strike intensified as college managements scaled down their immediate demand, requesting Rs 5,000 crore, half of the total outstanding amount, as a precondition to withdraw the shutdown and resume academic operations.
The immediate trigger was the government’s failure to meet commitments made during September talks, when officials promised to release Rs 1,200 crore before Diwali but disbursed only Rs 300 crore. Private unaided colleges account for 79.8% of Telangana’s higher education institutions and serve 75.2% of enrolled students, making them integral to the state’s education infrastructure and central to the Telangana colleges strike. According to official Telangana budget documents for 2025-26, education spending constitutes Rs 23,729 crore out of total state expenditure of Rs 2,84,837 crore, yet the pending reimbursement dues represent a substantial burden that consumes available fiscal space.
Telangana Govt forms committee to reform Fee Reimbursement Scheme & for mobilisation of funds.
— Naveena (@TheNaveena) November 4, 2025
Private colleges are on Strike due to unpaid dues. pic.twitter.com/aSN2j2FHYu
Student Impact and Academic Disruption
- Thousands of students face postponed internal exams and academic uncertainty due to the Telangana colleges strike
- The strike affects 1,07,218 engineering seats in 171 colleges and 3,44,793 degree college seats across 816 institutions
The Telangana colleges strike has created widespread academic uncertainty, with thousands of students left without classes and internal examinations postponed without clear rescheduling. Students arriving at college campuses found institutions closed and were informed that internal exams scheduled for the week had been postponed indefinitely, disrupting their academic calendars. Rohini, a first-year degree student near RTC Cross Roads, expressed the confusion facing students: “We came for our internal exams, but were told they’re postponed”. The disruption from the Telangana colleges strike has prompted FATHI to appeal to universities across the state to defer upcoming end-semester examinations until the crisis is resolved.
Student organizations have largely extended their support to the striking colleges, acknowledging that delayed fee reimbursements have made it difficult for institutions to pay staff salaries and maintain academic operations. In some instances, colleges have withheld students’ certificates due to the financial crunch caused by pending government dues. The Telangana colleges strike affects enrollment across multiple professional streams, with Telangana offering 1,07,218 engineering seats in 171 colleges alone, alongside thousands of seats in pharmacy, MBA, and other professional programs. The state’s private degree colleges, which account for 816 institutions with 3,44,793 seats, have seen only 38.39% occupancy in recent admissions, highlighting existing challenges in the sector even before the Telangana colleges strike.
Government Response Amid Political Pressure
- The government formed a committee to study sustainable financing through a Trust Bank system, criticized as a delaying tactic
- Union Minister Bandi Sanjay called the Telangana colleges strike “the first time in Telangana’s history” that over 2,500 institutions shut down simultaneously
In response to mounting pressure from the Telangana colleges strike, the state government has constituted a committee to explore sustainable financing mechanisms for the fee reimbursement scheme, though this move has been criticized by college associations as a delaying tactic. The committee, headed by the Special Chief Secretary for Welfare with the Principal Secretary for Finance as vice-chairman, has been tasked with studying a self-sustainable fee reimbursement scheme through the proposed Trust Bank system. Under the Trust Bank model proposed by FATHI.
the system would operate under Reserve Bank of India guidelines with components including a Rs 1,500 crore seed fund from the state government, Rs 300 crore in interest waivers from Central government schemes, Rs 375 crore as cess on various business sectors, and Rs 389 crore as corpus fund from educational institutions. However, the committee has been given three months to submit its report, which college managements view as insufficient given the immediate financial crisis driving the Telangana colleges strike.
The government has also reportedly ordered a vigilance and enforcement inquiry into private educational institutions to identify financial irregularities or misuse of reimbursement funds, a move FATHI leaders have condemned as “blackmail” aimed at silencing their legitimate protest. Union Minister Bandi Sanjay launched a scathing attack on the Congress government, stating the Telangana colleges strike represents “the first time in Telangana’s history” that over 2,500 educational institutions have shut down simultaneously, calling it evidence of “reckless fiscal mismanagement”. He questioned the government’s decision to form another committee when colleges are only asking for half of Rs 10,500 crore in pending dues, drawing parallels with previous controversial committees that failed to deliver results.
Private colleges to start indefinite strike and closure from Tomorrow as Telangana govt has neither provided clarity on the release of fee reimbursement dues nor placed any concrete proposal on the table.
— Jntuh Updates (@examupdt) September 14, 2025
Engineers Day to be observed as black day. pic.twitter.com/BIXkSRiq7E
Escalating Protests and Long-term Implications
- FATHI plans a rally of 30,000 at LB Stadium on November 8 and a Long March of 10 lakh participants on November 11 to pressure resolution of the Telangana colleges strike
- The RTF scheme historically covered 12.41 million student beneficiaries with a budget of approximately USD 2,390 million across united Andhra Pradesh from 2008-13
FATHI has announced an aggressive protest schedule designed to pressure the government into immediate action to end the Telangana colleges strike, with demonstrations expected to draw unprecedented participation from the education community. On November 8, the federation plans a massive rally at LB Stadium in Hyderabad, expecting around 30,000 college staff and faculty members to participate in solidarity for resolution of the Telangana colleges strike.
The protests will escalate further with a “Long March” to the State Secretariat scheduled for November 11, where nearly 10 lakh students and college stakeholders are expected to participate, potentially making it one of the largest education-related protests in the state’s history. FATHI leaders have warned that if the government continues to ignore their demands to resolve the Telangana colleges strike, they may lay siege to the residences of public representatives, indicating their willingness to intensify the agitation. The crisis highlights financial sustainability challenges facing Telangana’s fee reimbursement scheme, which has been a cornerstone of the state’s efforts to promote higher education access among economically weaker sections since the united Andhra Pradesh era.
Historical data shows that in the first five academic years from 2008-13, the RTF scheme covered 12.41 million student beneficiaries with a budget of approximately USD 2,390 million across united Andhra Pradesh. The scheme covers professional programs including Bachelor’s degrees in engineering, medicine, and education, as well as Master’s programs in business administration and computer applications. With Telangana’s education allocation for 2025-26 standing at Rs 23,729 crore, representing 9.0% of total sector expenditure according to PRS India budget analysis, the pending dues of Rs 10,000 crore represent a significant portion that cannot be easily accommodated without impacting other welfare schemes.
First time in India, colleges in Telangana are closing indefinitely over fee arrears.
— Naveena (@TheNaveena) September 12, 2025
All engineering, pharma, MBA, B.Ed, PG & degree colleges in Telangana will shut down indefinitely from Sept 15 over non-payment of ₹1,200 Cr fee reimbursement dues.
Sept 15 to be observed as… pic.twitter.com/nPytMnAdS2
Closing Assessment
The Telangana colleges strike over Rs 10,000 crore in pending fee reimbursement dues has exposed critical fiscal pressures facing the state’s higher education system and its ambitious welfare schemes. As nearly 1,500 institutions remain shuttered and students face academic uncertainty, the Telangana colleges strike standoff between FATHI and the government appears unlikely to resolve quickly despite the formation of a committee to study sustainable financing mechanisms.
The colleges’ demand for immediate release of Rs 5,000 crore, half the total arrears, reflects the severe financial strain on institutions that educate the majority of Telangana’s professional students, with private unaided colleges serving 75.2% of the state’s enrolled students. With mass protests planned for November 8 and 11 involving hundreds of thousands of participants, the Telangana colleges strike has evolved beyond an administrative dispute into a political flashpoint that tests the Congress government’s ability to balance welfare commitments against fiscal constraints.
The outcome of this unprecedented Telangana colleges strike will have lasting implications for how the state finances its fee reimbursement schemes and whether it can maintain its commitment to providing accessible professional education for economically disadvantaged students while ensuring the financial viability of the private colleges that form the backbone of its higher education infrastructure.
