Unused Funds for Higher Education in Telangana and Andhra Pradesh Remain in Limbo
Over the last 11 years, Rs 300 crore meant to enhance higher education in Telangana and Andhra Pradesh has remained unused. These funds, which have accumulated interest in banks, are stuck due to disagreements between the two states over how they should be shared after the bifurcation of the erstwhile United Andhra Pradesh in 2014.
A former senior official of the Telangana State Higher Education Department (TSED) explained that the funds were originally under the control of the Andhra Pradesh State Council of Higher Education (APSCHE) before bifurcation. After the split, Telangana claimed the funds, arguing that since APSCHE was headquartered in Hyderabad, the assets should belong to Telangana under the Andhra Pradesh Reorganisation Act of 2014. The Telangana High Court initially ruled in favor of this claim, but Andhra Pradesh challenged the decision.
The matter eventually reached the Supreme Court, which ruled that the funds should be shared based on population—58% for Andhra Pradesh and 42% for Telangana—rather than the location of the headquarters. Despite this verdict being delivered four to five years ago, the funds remain frozen in accounts at banks like State Bank of India and Punjab National Bank. Without an agreement between the two states, the accounts cannot be accessed. Meanwhile, the funds continue to accrue interest, which is automatically re-credited into the frozen accounts every three months.
During the COVID-19 pandemic, the Telangana State Council of Higher Education proposed resolving the issue, as it faced financial difficulties. However, the state government did not act on the proposal, leaving the matter unresolved. A former Vice-Chancellor from Telangana criticized both governments, stating that the funds were earned by APSCHE to benefit students and the higher education sector, and therefore should not be stalled due to political stubbornness.
Officials in Andhra Pradesh also pointed out that the Higher Education Department in their state has been waiting for its 58% share, as per the Supreme Court’s directive. Some believe that if the matter had been left to the Higher Education Councils of both states to resolve, it might have been settled by now. However, with no compromise in sight at the political and bureaucratic level, the funds remain unused, depriving the higher education sector of much-needed resources.
