*Naidu Govt playing with poor students’ futures by withholding fee reimbursement*

Nellore, March 13: YSRCP MLC P. Chandrasekhar Reddy strongly criticised the coalition government for playing with the future of poor students by failing to clear fee reimbursement dues and instead creating confusion through a so-called tripartite agreement. Speaking to the media at the YSRCP district office in Nellore on March 13, 2026, he said the government is staging drama instead of paying pending dues under the Vidya Deevena and Vasathi Deevena schemes, causing severe distress to students and educational institutions. He alleged that the government attempted to introduce a tripartite agreement involving the AP State Financial Services Corporation, Welfare Corporations, and private colleges, under which colleges were asked to submit the agreement to banks to obtain loans while the government delayed payments. According to the proposal, if the government fails to repay the dues, banks would have the authority to seize college assets, while interest of about 7.5% would be deducted in advance, placing the burden on the institutions.
Chandrasekhar Reddy recalled that during the YS Jagan Mohan Reddy government, all fee reimbursement arrears of Rs. 1,880 crore were cleared soon after taking office in 2019, and an additional Rs. 2,328 crore was released the same day, providing relief to nearly 20 lakh students. He said the previous government ensured timely quarterly payments and deposited the fee reimbursement amount directly into the bank accounts of students’ mothers, enabling them to pay the colleges themselves, and implemented the scheme without leaving any arrears until March 2024. He also noted that the Vasathi Deevena scheme provided between Rs. 1,000 crore and Rs. 1,100 crore annually to support students’ hostel and living expenses.
He alleged that since the coalition government came to power, both Vidya Deevena and Vasathi Deevena schemes have been severely neglected. From March 2024 to March 2026, nine quarters of fee reimbursement payments amounting to about Rs. 6,300 crore should have been released, and with the current budget period the requirement rises to around Rs. 9,100 crore for thirteen quarters. However, the government admitted in the Assembly that only Rs. 1,859 crore has been released so far, leaving approximately Rs. 7,241 crore pending for poor students. He said that just before the Assembly session in February, the government announced the release of Rs. 1,200 crore through budget release orders to avoid opposition criticism, but later moved towards the controversial tripartite agreement when colleges refused to sign. Even after modifying the proposal for one year, banks reportedly released only about Rs. 300 crore out of the announced amount, while around Rs. 6,900 crore still remains unpaid. Chandrasekhar Reddy demanded that the government immediately clear all fee reimbursement dues and warned that if justice is not done to students, YSRCP will stand with them and launch an agitation.