Private school associations in Punjab have opposed the state government’s ordinance capping annual fee hikes at 5% and mandating refunds of any excess fee collected over the past three years, warning that the move could seriously impact the financial viability of schools and the state’s education ecosystem.
They also announced that they would approach the Punjab and Haryana High Court if the issue is not resolved through dialogue.
Addressing a press conference in Chandigarh, National Independent Schools Alliance (NISA) President Kulbhushan Sharma and Recognised Affiliated Schools Association (RASA), Punjab, Chairman Harpal Singh (UK) urged the Punjab Government to hold consultations with private school associations, parents, educationists and financial experts before implementing the new policy.
Sharma said a balanced and transparent fee regulation policy was needed to protect the interests of parents while ensuring the financial sustainability of schools. “Quality education cannot be ensured through fee control alone. While safeguarding parents’ interests is important, it is equally essential to ensure dignified salaries for teachers and maintain educational standards,” he said.
Harpal Singh said the ordinance would have serious financial implications for schools, which had made long-term commitments based on the earlier legal framework that allowed annual fee revisions of up to 8%. He said schools had invested heavily in teacher salaries, recruitment, infrastructure, laboratories, smart classrooms, digital learning, safety systems and sports facilities, and retrospective fee refunds would put these investments at risk.
The associations pointed out that private schools are still recovering from the financial losses suffered during the COVID-19 pandemic, with many institutions continuing to repay loans taken to sustain operations. They warned that retrospective refunds could be particularly damaging for low-fee and budget private schools, potentially forcing some institutions to shut down.
Citing available data, the associations said nearly 3.06 million students are enrolled in private schools across Punjab, compared to around 2.67 million in government schools. Private schools also employ about 1.46 lakh teachers. They questioned whether the state government has the capacity to accommodate more than 30 lakh additional students and recruit nearly 1.5 lakh teachers if the private school sector weakens.
They also highlighted challenges within the government school system, stating that according to UDISE+, Punjab has 2,431 single-teacher schools catering to nearly 77,000 students, while 3,032 government schools still lack internet connectivity and thousands of teaching posts remain vacant.
The associations further argued that rising operational costs—including electricity, employee provident fund contributions, transportation, maintenance, technology upgrades and safety measures—have significantly increased over the past three years. Since teachers’ and staff salaries account for 50-70% of a school’s expenditure, limiting annual fee hikes to 5% could affect salary revisions and lead to the migration of experienced teachers to other states.
Emphasising that Punjab’s education system has been strengthened through the combined efforts of government and private schools, the associations said education thrives through dialogue and cooperation rather than confrontation. They urged the government to reconsider the ordinance and engage with stakeholders to evolve a balanced fee regulation framework.
