Why Are Vidarbha Schools Still Waiting for Right To Education Funds?

thenewsdirt
Jun 24
7 min read

Private schools across Vidarbha are facing an unprecedented financial crisis as the Maharashtra government's delays in releasing Right to Education Act reimbursements have stretched beyond a decade.

Educational institutions in the region report accumulated dues exceeding hundreds of crores, forcing them to struggle with basic operational requirements.

Schools throughout Nagpur, Akola, Buldhana, Washim, Gadchiroli, and Chandrapur districts now confront the possibility of halting admissions for economically disadvantaged students under the mandatory 25% reservation quota.

Mounting Financial Pressure Threatens School Operations

The Maharashtra government currently owes approximately Rs 2,400 crore to private schools across the state for RTE reimbursements, with delays dating back to 2018.

These protracted payment schedules have created cascading financial difficulties that intensified significantly over recent years. Schools participating in the mandatory quarter reservation under the RTE Act report receiving only partial payments, with some institutions claiming a complete reimbursement drought since 2017.

Recent government allocations have provided minimal relief to struggling educational institutions.

In January 2025, the state approved merely Rs 45 crore for RTE reimbursements, an amount school associations immediately dismissed as grossly inadequate, considering the massive outstanding obligations.

This allocation translates to approximately Rs 10,000 to Rs 15,000 per school, insufficient to cover expenses incurred for students admitted under the RTE quota.

The Comptroller and Auditor General's findings reveal systemic deficiencies in fund management, with unutilised amounts ranging between Rs 12,259 crore to Rs 17,282 crore over a six-year period across various states.

This indicates poor internal financial control mechanisms. Maharashtra's education sector budget increased by 9.8% to Rs 95,875 crore in 2024-25, yet the RTE reimbursement allocation was reduced from Rs 200 crore to Rs 173 crore.

Educational institutions across the Vidarbha districts report varying degrees of impact from these delays.

Nagpur district received Rs 27 crore in one payment tranche in 2018, representing the highest allocation among Maharashtra districts, yet schools continue experiencing significant shortfalls.

The growing disparity between government payments and actual operational costs has forced many institutions in Vidarbha to adopt alternative strategies, including collecting fees from RTE students with promises to refund once government dues are cleared.

Maharashtra English School Trustees Association president Sanjayrao Tayade Patil warned that schools may halt RTE admissions if dues remain unpaid, stating: "The reimbursements have been irregular for the past four years, amounting to almost 2500 crore remaining dues. Small reimbursements like Rs 45 crore will barely provide schools with Rs 10,000 to Rs 15,000 each, which is insufficient to cover the expenses of students admitted under the 25% RTE quota."

Educational Access Compromised Across the Region

Infographic showing issues of RTE Fund Disbursement in Vidarbha — Issues of RTE Fund Disbursement in Vidarbha

The funding crisis has created direct consequences for educational access throughout Vidarbha.

Schools report being forced to charge fees from RTE-admitted students, directly contradicting the fundamental principle of free education under the Act. In Nagpur, several schools charge 5% to 10% of regular fees from RTE students, citing delayed government reimbursements as justification.

The state's fixed reimbursement rate of Rs 17,670 per student has remained stagnant for three years, failing to account for inflation and rising operational costs.

Educational quality indicators have shown concerning trends coinciding with the funding crisis period.

The Annual Status of Education Report 2022 revealed that only 18.5% of Class 3 students in government schools could solve basic subtraction problems, declining from 28.1% in 2018. Reading capabilities also deteriorated, with only 26.6% of Class 3 students able to read Class 2-level text, compared to 44.2% four years earlier.

Regional educational performance data indicate systematic challenges across districts. The Nagpur division's SSC pass percentage dropped from 97% in 2022 to 92.05% in 2023, marking the lowest performance statewide. Similarly, HSC pass rates declined from 96.52% to 90.35% during the same period. These declining outcomes coincide with sustained funding delays, though establishing direct causation requires further analysis.

The crisis extends beyond immediate financial constraints to affect fundamental school operations. Educational institutions struggle to maintain infrastructure, retain qualified teaching staff, and provide necessary learning materials for RTE students.

Many schools have reduced extracurricular activities and support services, directly impacting the quality of education available to disadvantaged students who depend on RTE provisions.

Government Response Fails to Address Scale of Crisis

State authorities have acknowledged funding challenges whilst citing procedural and coordination issues as primary obstacles.

Education Minister Deepak Kesarkar stated that the Maharashtra government awaits funds from the Union government to reimburse schools, with officials continuously following up on the matter.

The state contributes 40% of RTE funding obligations, whilst the remainder comes through centrally sponsored schemes like Samagra Shiksha Abhiyan.

Recent government actions demonstrate attempts to address the crisis through incremental releases. In April 2025, the state released Rs 407 crore for RTE funds, marking the largest disbursement since the COVID-19 pandemic. However, this amount represents less than 20% of the total outstanding dues, providing temporary relief rather than a comprehensive resolution to the underlying problem.

The Maharashtra government has implemented rule changes affecting RTE implementation across regions.

New regulations allow private schools within one kilometre of government or aided schools to be exempted from the 25% reservation requirement. This modification, similar to rules adopted in Karnataka and Kerala, potentially reduces financial burden on private institutions whilst simultaneously limiting admission opportunities for disadvantaged students.

Administrative challenges compound the funding delays significantly. The Comptroller and Auditor General reported substantial delays in fund releases at various levels, from the Centre to the state and the state to implementing agencies.

Non-submission of utilisation certificates worth Rs 65,921 crore across Maharashtra until March 2018 indicated inadequate monitoring of grant utilisation. The school and education department featured among sectors with pending utilisation certificates, suggesting systemic administrative shortcomings.

State development fund allocations show preferential treatment for the region, with Vidarbha receiving Rs 30,604 crore in 2025-26, the highest among all regions. The school education and sports department serves as the principal expenditure channel for these funds.

Despite this priority allocation, RTE-specific funding continues facing delays, indicating compartmentalised budget management challenges that prevent effective resource deployment.

Institutional Resistance Escalates Through Organised Protests

Educational institutions have escalated their response to funding delays through organised protests and legal challenges.

In June 2025, schools in Nagpur, Akola, Washim, Buldhana, Gadchiroli, and Chandrapur participated in a statewide shutdown protesting delayed grant-in-aid and RTE reimbursements.

The Maharashtra Rajya Shikshan Sanstha Mahamandal, representing private aided schools, coordinated this action affecting thousands of students on the academic year's opening day.

Ravindra Fadnavis, General Secretary of the Mahamandal, expressed frustration with persistent delays, stating: "The grant-in-aid issue has been dragging on for years. The government keeps making promises, but there's no action. If schools don't receive grants, how are we expected to run them?" The organisation threatened state-wide agitation if swift government action did not materialise.

Historical protest data reveal the sustained nature of institutional resistance to funding delays.

In 2018, approximately 45,000 schools across Maharashtra threatened closure to protest non-payment of RTE dues. School associations organised rallies in Delhi and Mumbai, demanding immediate resolution of payment delays.

The Federation of Schools Association of Maharashtra reported pending amounts of Rs 500-600 crore at that time, demonstrating the chronic nature of the funding crisis that has only intensified over subsequent years.

Individual school responses have varied across districts. Some institutions have approached education departments directly through formal channels, whilst others have pursued legal remedies through court systems.

School trustee Avantika Lekurwale reported in 2016 that government payments covered only 66% of bills for the 2012-14 academic sessions, with no payments received for 2014-15 despite the 2015-16 session nearing completion.

The Independent English Schools Association and other institutional bodies have maintained sustained pressure on state authorities through formal representations and public campaigns.

These organisations have documented specific instances of schools considering withdrawal from RTE participation due to financial unsustainability. The threat of mass withdrawal from the programme represents a significant risk to the RTE Act's implementation objectives across the region.

The persistence of RTE funding delays reflects broader systemic challenges within Maharashtra's educational financing framework. Educational institutions find themselves caught between statutory obligations to provide free education and financial realities that threaten their operational sustainability.

The widening gap between government promises and actual disbursements continues creating uncertainty for both educational providers and beneficiaries, whilst schools consider increasingly drastic measures to address mounting financial constraints that compromise the RTE Act's fundamental objectives.