Restructure loans, private schools association of Karnataka urges Nramamala Sitharaman
The Karnataka Registered Unaided Private Schools Management Association (RUPSA) has asked Union Finance Minister Niramala Sitharaman to consider the restructuring of loans made by unaided private schools in the state during the Covid pandemic.
“For 2 years, private schools have been struggling to balance their financial commitments. Public statements made by politicians and education department officials to earn brownie points have further jeopardized our situation,” RUPSA Chairman Lokesh Talikatte said in the letter sent to the Ministry of Finance. ‘Union.
“The consequence of this is that private schools are unable to receive tuition fees from parents. As a result, we are unable to repay our loan installments and loan service interest. Our dues are piling up and we are in a debt trap,” he added.
Adding insult to injury, expenses such as rising electricity bills, building tax and fire safety expenses have further aggravated the situation, he said.
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“Over the past two and a half years, approximately two thousand five hundred schools have closed or are about to close. If the situation continues, many other private schools will close and thousands of employees dependent on these schools will be unemployed,” warned Talikatte.
“Therefore, in this critical situation, we need your (Sitharaman) intervention. Please order the restructuring of loans granted by private schools to nationalized banks, programmed banks, NBFCs, cooperative banks, etc. We need of a moratorium for at least one year. Your favorable decision in this regard will be extremely useful in improving the education system. We ask you to consider our request at the earliest,” he said.
Talikatte said that the pandemic has upended the economic situation of many sectors around the world, and the education sector is the most affected because children have not only lost their two and a half years of learning, but have also fallen in depression. It is very difficult to manage and to compensate, he noted.
He argued that unaided private schools take on the responsibilities of the state government in improving the education system. “Madam, our contribution is, but no more but certainly equivalent to the government’s efforts,” he said.
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