Punjab Cabinet Clears Ordinance to Cap Private School Fee Hike at 5%
Punjab Cabinet Caps Private School Fee Hike at 5%

The Punjab Cabinet on Monday approved an ordinance to amend the Punjab Regulation of Fees of Unaided Educational Institutions Act, capping annual fee and fund increases at a maximum of 5 per cent for private unaided schools. The decision, taken at a meeting chaired by Chief Minister Bhagwant Mann, aims to curb arbitrary fee hikes.

Details of the Ordinance

Finance Minister Harpal Singh Cheema and Education Minister Harjot Singh Bains briefed the media after the Cabinet meeting. Bains stated that once the ordinance comes into force, no unaided private school will be permitted to raise fees or funds by more than 5 per cent annually. The ordinance will now be sent to the Governor for approval.

Education Minister Harjot Singh Bains said, “If any school feels it needs to raise fees beyond 5 per cent, it will have to approach a high-powered committee to be constituted by the state government.” The committee will examine the school’s case and conduct a financial audit before allowing any increase.

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Refund of Excess Fees

The government has also decided to act against schools that made unreasonable fee hikes in the past three years. Officials confirmed that the excess amount collected will be refunded to parents. Bains added that records of such schools have already been seized with immediate effect to prevent manipulation and provide relief to parents.

Background and Significance

The move follows Chief Minister Bhagwant Mann’s announcement on June 3 that no private school would be allowed to hike fees by more than 5 per cent annually. The decision gains significance after a tragic incident in Amritsar, where a 17-year-old meritorious student allegedly died by suicide due to stress over heavy school fees.

Industrial Incentives Scheme

In another decision, the Cabinet approved a one-time scheme for industries that were given subsidies and concessions under industrial policies from 1978 to 2003 but later closed down. Finance Minister Harpal Singh Cheema said the scheme ensures eligible closed industries can avail the incentives they were entitled to under the old policies. The ordinance and industrial scheme are expected to provide relief to parents and support genuine industrial units in the state.

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