Professional colleges that had threatened to close down indefinitely from February 7 if the government did not clear their dues under the fee reimbursement scheme, have reconsidered their decision after the government released Rs 1,259 crore towards payment of arrears as a first instalment on Monday.

The government owes the managements of engineering, pharmacy, MBA, MCA, M.Tech and B.Ed colleges Rs 3,600 crore in arrears for 2011-12. Under the scheme, the government has pledged to pay the fees of needy students. The government has also agreed to release the second instalment by March 31 and clear all the dues by May 31.

“Since the government responded positively to our demand on payment of fee arrears and released Rs 1,259 crore immediately, we have decided to call off the strike. It has also assured us it will clear the balance amount within three months. We thank the Chief Minister and the ministers concerned for resolving the issue,” said N. Ramesh, chairman, Consortium of Engineering and Professional Colleges Management Associations of AP (CEPMA). In order to avert a similar situation cropping up next year, CECMA has called on the government to come out with a time-table for fee reimbursements during the academic year 2012-13. Meanwhile, minister for social welfare, Pitani Satyanarayana, told the managements not to threaten the government to claim fee arrears.