Restructure loans, Karnataka private schools association urges Sitharaman

Bengaluru 8th August : The Karnataka Registered Unaided Private Schools Management Association (RUPSA) has asked the Finance Minister of the Union Niramala Sitharaman to think about restructuring of loans provided to private schools that are not aided in the state during the Covid pandemic.

"For two years private schools have struggled to manage their financial obligations.

Politicians statements as well as Education Department officials to gain brownie points have further harmed our current situation." RUPSA President Lokesh Talikatte stated in the letter addressed to the Union Finance Ministry "The result of this is that private schools arent being able to collect fees due from parents.

Therefore, we are unable to pay our loan installments as well as pay charges on loans.Our debts are increasing and were in the debt trap," he added.

To make matters worse costs like higher electrical bills, building tax and fire safety charges added to the issue, he said "In the last two and a half years, approximately two and half thousand schools been shut down or are on the brink of closing.If the situation persists that way, other private schools could shut down and thousands of employees working in these schools will lose their jobs," Talikatte warned "Therefore, in this critical situation, we require your (Sitharaman) intervention.

We need to request restructuring of loans accessed by private schools through the nationalised banks, scheduled banks co-operative banks, NBFCs, and more.We require an immediate time-bound moratorium of one year at a minimum.

Your decision in this area will be extremely beneficial in improving the quality of education.We ask you to take note of our request as soon as possible," he said.

Talikatte claimed that the pandemic destroyed the economic condition of various industries in the world.The one that is the most affected is the education industry because children have not only been deprived of their two and a half years of learning, but also been suffering from depression.

This is extremely difficult to manage with and make up for, he noted.He said that private schools that are not aided by government are taking on the responsibility of the government in improving the educational system.

"Madam our contribution is although not as much, but certainly equal to government efforts," he said.mka/vd .