Telangana Pharmacy Colleges Demand Direct Fee Reimbursement to Students Amid ₹550 Cr Government Dues
As Telangana’s pharmacy education sector grapples with mounting financial stress, a significant shift may be on the horizon. Private pharmacy colleges in the state are pushing for a new reimbursement model for the academic year 2025–26, wherein fee reimbursement funds would be transferred directly to eligible students, rather than routed through institutions.
This proposal comes in response to the Telangana government's failure to clear four years of pending reimbursement dues, which have collectively reached approximately ₹550 crore. With institutions struggling to stay afloat, college managements argue, this change is necessary for their survival.
Current Crisis: Fee Dues and Institutional Strain
Telangana has around 113 pharmacy colleges, with nearly 70,000 students enrolled across undergraduate and postgraduate pharmacy courses such as B Pharm, Pharm D, and M Pharm. According to K Ramadas, honorary chairman of the Telangana State Pharmacy Colleges Managements Association, approximately 65% to 70% of students in these programmes are eligible for fee reimbursement under state government schemes.
However, the non-disbursal of funds has left institutions cash-strapped. Ramadas noted:
“How are we supposed to survive when the majority are not paying fees for years together?”
This crisis has led to colleges' inability to pay teaching and non-teaching staff salaries, triggering a worrying trend: many talented faculty members are abandoning their academic careers to pursue more financially stable jobs.
The New Proposal: Direct Transfers to Students
In light of this worsening situation, the Telangana State Pharmacy Colleges Managements Association has strongly appealed to the government to shift the mode of fee reimbursement. The association proposes that the state directly transfer scholarships and fee reimbursements to students’ accounts, leaving students responsible for paying their full course fees to colleges at the time of admission.
“We don’t want to be in the middle and wait for years to get our fees,” said Ramadas.
The new model would allow colleges to receive fees upfront while enabling students to reclaim the amount from the government later. Pulla Ramesh Babu, the association’s general secretary, further stressed that the government should clear the ₹550 crore in pending dues over two to three instalments to help stabilize institutions during the transition.
Fee Structure and Reimbursement Eligibility
The annual fee for various pharmacy programmes in Telangana differs significantly across colleges:
- B Pharm: ₹31,000 to ₹1.2 lakh
- Pharm D: ₹68,000 to ₹1.3 lakh
- M Pharm: ₹1.1 lakh
Students belonging to Scheduled Caste (SC) and Scheduled Tribe (ST) categories receive full reimbursement, while Backward Classes (BC) and other eligible categories typically receive reimbursement of the minimum prescribed fees.
Given these figures, the financial burden on colleges becomes apparent when reimbursements are delayed or unpaid for extended periods. The loss of regular income from such a high percentage of fee-reimbursed students creates serious cash flow issues.
Impact on Student Admissions and Faculty
The situation could have ripple effects on admissions for the 2025–26 academic year. If the proposal is not accepted, students eligible for reimbursement may be forced to pay full fees upfront, which could discourage economically disadvantaged students from pursuing pharmacy education altogether.
In 2024, around 9,000 students enrolled in first-year B Pharm, and 1,700 students joined first-year Pharm D. These numbers may decline if financial support mechanisms are not clarified in time.
Furthermore, faculty retention continues to be a growing concern.
“Because of the pending dues, we cannot pay our teaching and non-teaching staff on time. This is resulting in many talented employees leaving their teaching careers,” said Babu.
This exodus could compromise academic quality and diminish the reputation of pharmacy education in the state.
Telangana Council of Higher Education Responds
Despite the pressing demands from college managements, Telangana Council of Higher Education (TGCHE) officials have clarified that colleges cannot unilaterally enforce changes to the reimbursement system.
“This is a policy decision that needs to come from the government,” said V Balakista Reddy, chairman of TGCHE. He acknowledged the colleges’ right to formal appeal but stressed that the state government must initiate and approve any policy-level change.
The Road Ahead: Policy Clarity Needed
With colleges threatening to implement the “pay first, claim later” model starting from the 2025–26 admission cycle, the Telangana Government faces growing pressure to address long-pending dues and revise its approach to education funding.
If the government agrees to direct transfers, it will significantly shift how scholarships and reimbursements are handled, potentially influencing policy frameworks in other states facing similar challenges.
Until then, students, parents, and college administrators remain uncertain, awaiting clarity on how the new academic year will unfold—and whether education access and institutional stability can be preserved simultaneously.
