MUMBAI: Independent self-financed schools across Maharashtra are showing a reluctance to register for admissions under the 25% quota of the Right to Education (RTE) Act, citing long delays in fee reimbursement by the state government. School management associations claim that around ₹2,500 crore is pending for the last ten years, putting severe financial pressure on their institutions.
This year, although the online registration process for schools participating in RTE admissions has begun, the response has been poor although the government has already extended the registration deadline twice. Last year, nearly 8,863 schools registered but the number this year is less, at 8,490 schools so far.
Under the RTE Act, private unaided schools are required to reserve 25 per cent of their seats for students from the economically weaker sections (EWS), and the fees of these students are reimbursed by the central and state governments in a 60:40 ratio. Since the implementation of the Act in Maharashtra in 2011-12, reimbursements have been irregular and delayed, often released in parts. This has disturbed the financial planning of many schools, especially those that depend entirely on fees to run daily operations.
Seven years ago, the state education department had fixed the RTE reimbursement at ₹17,600 per student per year. However, from the academic year 2020-21, this amount was reduced to ₹8,000. School managements argue that it does not reflect the actual cost of education.
Bharat Malik, state representative of the National Independent Schools Alliance, said that schools were willing to support the government’s RTE initiative for EWS students but it needed to do its part. “Around ₹2,500 crore is pending,” he told HT. “Even when some amount is released, it is very small. This affects the smooth functioning of schools. The cost is eventually borne by the parents of the remaining 75 per cent students.”
The issue was also discussed during a recent state-level convention of the Maharashtra English School Trustees Association (MESTA), in which the association raised several demands such as the waiving of property tax on school buildings and benefits for teachers in unaided English-medium schools on par with those given to teachers in government and aided schools. MESTA chairperson Sanjayrao Taydepatil demanded a per-student annual RTE reimbursement of ₹40,000, as the current amount was far below actual expenses.
On Friday, during an educational event, school education minister Dada Bhuse accepted the fact that the state owed private schools RTE reimbursement, and assured that they would be paid their dues in a phased manner.
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Minority status escape route
With their financial stress increasing, many school managements are looking for ways to opt out of the RTE admission process. One such option is obtaining minority status, which exempts schools from the 25 per cent RTE quota. According to sources, around 40 schools in Mumbai have obtained minority status for this purpose in the last five years and nearly 120 schools across Maharashtra have done the same.
“While the government is not fulfilling its responsibility of timely reimbursement, it is nevertheless forcing schools to strictly follow their duties under the RTE Act, pushing schools to find a way out,” said Taydepatil. “Many institutions managed by minority groups had not applied for minority status even after the RTE came into force. Now, due to continued neglect by the government, they are choosing this option to survive.”
