Breaking: Punjab Private Schools warn 5% fee cap could lead to closures and job losses, seeks Governor’s intervention
Babushahi Bureau
Chandigarh, June 22, 2026: The Federation of Private Schools & Associations of Punjab (FAP) has strongly opposed the Punjab Cabinet's decision to reduce the annual fee hike limit for unaided educational institutions from 8 per cent to 5 per cent, warning that the move could threaten the financial viability of thousands of private schools across the state.
In a statement issued on Sunday, FAP expressed disappointment over the government's approval of amendments to the Punjab Regulation of Fee of Unaided Educational Institutions Act, 2016.
The federation claimed that the decision was taken without consulting key stakeholders and without representation from private schools in the committee that reviewed the matter.
FAP, which represents thousands of self-financed schools in Punjab, said the revised cap would make it increasingly difficult for institutions to cope with rising operational costs, including teacher salaries, electricity bills, transportation expenses, maintenance, safety compliance requirements and implementation of National Education Policy (NEP) reforms.
The organisation argued that since unaided schools do not receive government grants, limiting annual fee increases to 5 per cent could place many institutions under financial strain, particularly budget and mid-range schools operating in rural and semi-urban areas.
The federation also warned that the decision could lead to the closure of several schools and result in large-scale job losses among teachers and non-teaching staff. It claimed that more than 50,000 employees and over two lakh students could be affected if schools struggle to sustain operations under the revised fee structure.
According to FAP, affordable private schools play a crucial role in educating children from farming and lower-income families who often rely on such institutions due to limited access to quality alternatives.
The federation further contended that excessive regulation of fee structures could conflict with judicial principles laid down by the Supreme Court regarding the autonomy of unaided educational institutions to determine reasonable fees, provided there is no profiteering.
FAP President Dr. Jagjit Singh Dhuri urged the Punjab Government to reconsider the proposed 5 per cent cap and retain the existing 8 per cent limit for budget and economically affordable schools. He also sought relief measures such as concessions on school bus road tax, property tax and subsidised electricity to ease financial pressure on educational institutions.
The federation has appealed to both the Punjab Government and Governor Gulab Chand Kataria to hold consultations with stakeholders before implementing the revised rules. It has also requested representation in the decision-making process and sought the continuation of provisions allowing schools to justify fee increases beyond the prescribed cap in exceptional circumstances.
FAP said it remains committed to transparency and constructive dialogue and has sought an urgent meeting with the Chief Minister and the Governor to discuss the issue and find a balanced solution that protects the interests of both parents and educational institutions.