Punjab Cabinet clears ordinance to cap annual private school fee hikes at 5%

Punjab ministers announce Cabinet decisions, including a proposed cap on annual fee hikes by private schools. | ANI


The Punjab Cabinet has approved an ordinance to regulate fee hikes in private schools. Under the proposal, educational institutions will not be allowed to increase fees by more than 5 per cent annually without prior approval from a designated committee. The ordinance has been sent to the Governor for final approval, state ministers said on Monday.

Addressing a press conference after the Cabinet meeting, Finance Minister Harpal Singh Cheema and Education Minister Harjot Singh Bains said the move was aimed at protecting parents from arbitrary fee hikes and bringing greater transparency to the functioning of private educational institutions across the state.

The ministers said schools that increased fees by more than 15 per cent over the past 36 months would be required to refund the excess amount collected from parents. They maintained that the government was committed to ensuring that schools do not impose unreasonable financial burdens on families.

Under the proposed framework, private schools seeking a fee increase beyond 5 per cent will be required to follow a detailed approval process. Educational institutions will have to submit an application at least six months in advance and provide justification for the proposed increase.

Schools will also have to submit audited financial records and explain the need for higher fees, such as the creation of new infrastructure or the introduction of additional facilities.

Bains said a committee comprising the Divisional Commissioner, two District Education Officers and a financial expert would examine such requests. He clarified that submitting an application would not automatically result in approval and that the final decision would be based on a financial audit and an assessment of the institution’s claims.

The minister said all schools would be required to notify parents of their fee structure at least two months before the commencement of an academic session. The regulations would apply uniformly to institutions affiliated with the Punjab School Education Board, CBSE, ICSE and international education boards operating in the state.

Besides the education-related decision, the Cabinet also approved the creation of new administrative posts to improve public service delivery. Cheema said the government had decided to establish an Additional Deputy Commissioner (ADC) post for the Dasuya-Mukerian region following demands raised by residents during public grievance meetings conducted by Chief Minister Bhagwant Mann.

The new ADC jurisdiction will cover Dasuya, Garhdiwala, Mukerian, Talwara and Hajipur. The Cabinet also approved the creation of an additional ADC post in Phagwara to facilitate administrative work and reduce inconvenience to residents.

In another significant decision, the Cabinet approved the release of pending incentives to eligible industrial units under various industrial policies introduced by previous governments between 1978 and 2003.

Cheema said several industries had not received subsidies and incentives due to prolonged disputes and the closure of some units, with many cases eventually reaching the courts.

The minister said the government had now decided to clear pending incentive claims of eligible companies. According to the government, 99 industrial units are expected to benefit from the decision, which is aimed at providing relief to industry and improving the investment climate in the state.

The decisions cover education, administration and industry, with the government saying they are intended to improve regulation, public service delivery and industrial growth in Punjab.