After a long run and finally an order from the supreme court, the state government on monday decided to release Rs600 crores towards fee re-imbursement. After devoting considerable time to discuss fee reimbursement issue, the Cabinet agreed in principle to give release to the order for amount immediately.

Transport Minister Botsa Satyanarayana is believed to have expressed concern at a Cabinet meeting in the city 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 and another 20 to 30 per cent in another three or four weeks. Finance Minister Aanam 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.

Published Date : Tuesday, 15/2/2011 3:43 PM IST