Turning to the fee reimbursement crisis in Telangana—the problem runs deep. At its core, the state government owes private professional colleges (for courses like engineering, pharmacy, MBA, MCA) a massive backlog in tuition fees it promised to cover for students. Colleges, as a result, are holding back graduation and transfer certificates from thousands of students. This gridlock has blocked opportunities for students to find jobs or pursue higher studies. Telangana BJP President N. Ramchander Rao began a 48-hour hunger strike in Hyderabad on August 24, 2026, to demand the immediate release of Rs 12,000 crore to Rs 15,000 crore in pending fee reimbursement arrears.
The Core Scale & Financial Statistics
The numbers are staggering. Estimates put the affected student population somewhere between 20 and 40 lakh, stretching across current students and recent graduates. Pending dues come to at least Rs 12,000 crore, possibly even as high as Rs 15,000 crore. Of this, about Rs 8,000 crore is from the previous BRS government, while another Rs 4,000 crore accumulated under the current Congress administration. Despite the Telangana High Court ordering the arrears to be cleared by July 31, 2026, the government missed the deadline.
How the Congress Govt is Handling It?
Revanth Reddy government is trying a new approach. Starting 2026–27, students will receive reimbursement money directly into their bank accounts in advance, rather than colleges handling the funds. This move is supposed to stop colleges from refusing to release certificates. The government allocated Rs 2,400 crore right away, with Rs 250 crore already released to start the process. Going forward, the government promises to deposit Rs 200 crore per month, via an online system, to prevent dues from piling up again.
BJP's "Feesula Bakayi – BJP Ladayi" Campaign
The BJP has seized on the issue, organizing a 48-hour hunger strike under its “Feesula Bakayi – BJP Ladayi” campaign, held at their state headquarters after the government denied permission at the usual Dharna Chowk protest spot. BJP leaders, especially State president N. Ramchander Rao, have gone on the political offensive against the Congress, drawing even Rahul Gandhi into the fray by demanding he address this crisis in his own party’s state.
Their demands are blunt: the Congress government must immediately release the full Rs 15,000 crore backlog, boost the education budget, and appoint a dedicated state Education Minister without further delay.
Practical and Political Impact
Meanwhile, private colleges are reeling. With no money coming in, they’re finding it impossible to pay faculty. Associations like FATHI have threatened state-wide shutdowns and protests if things don’t change soon. Families, desperate to free up student certificates, are resorting to pledging gold or borrowing money at sky-high rates to pay colleges. The BJP’s youth wing, BJYM, has ramped up its mobilization—gathering over 5 lakh student signatures during campus drives—turning student anger into a potent challenge for the Congress government.