Punjab Govt. Should Engage in a Dialogue with Private School Associations on Its Fee Capping Order,” NISA Chief Kulbhushan Sharma

Chandigarh, July 21, 2026: National Independent Schools Alliance (NISA) President Kulbhushan Sharma and Harpal Singh (UK), Chairman, Recognised Affiliated Schools Association (RASA), Punjab, addressed a press conference

expressing serious concerns over the Punjab Government's ordinance capping the annual fee increase of private schools at 5% and directing schools to refund any fee collected beyond the prescribed limit during the past three years. They said the decision, if implemented in its present form, could adversely affect the financial sustainability of private schools and, consequently, the overall school education ecosystem in Punjab. The representatives of private school associations stated that if the issue remains unresolved by the Punjab Government, they will have no option but to knock on the doors of the High Court for appropriate legal intervention.

Speaking on the occasion, Kulbhushan Sharma, President of the National Independent Schools Alliance (NISA), urged the Punjab Government to initiate a comprehensive dialogue with private school associations, parent representatives, educationists and financial experts to evolve a balanced, transparent and scientifically designed fee regulation policy that protects the interests of all stakeholders while preserving educational excellence. According to Sharma a balanced education policy is the need of the hour and quality education cannot be ensured through fee control alone. “While safeguarding the interests of parents is important, it is equally essential to ensure the financial sustainability of schools, dignified salaries for teachers and quality education for students,” he said.

Harpal Singh (UK), Chairman, Recognised Affiliated Schools Association (RASA), Punjab, said the 5% fee cap and retrospective refund provision would severely impact the functioning of private schools, which have made financial commitments based on the existing legal framework that permitted annual fee revisions of up to 8%. Singh said that schools have invested substantially in teachers' salaries, staff recruitment, infrastructure, laboratories, smart classrooms, digital learning, safety systems and sports facilities. Any retrospective financial burden, he added, would weaken schools' ability to maintain educational standards.

Notably, under the earlier prevailing policy, private schools were legally permitted to increase fees by up to 8% annually.

Both Sharma and Harpal further stated that schools are still recovering from the financial impact of the COVID pandemic. Many institutions had taken loans to sustain operations during that period and continue to face repayment obligations.

They warned that forcing schools to make retrospective fee refunds could prove particularly devastating for low-fee and budget private schools. Such institutions, already operating on thin margins, could face severe financial distress and possible closure.

 According to available data, around 3.063 million students are currently enrolled in private schools across Punjab, compared with approximately 2.669 million students in government schools. Private schools also employ nearly 146,000 teachers, highlighting their critical contribution to the State's education system. The speakers questioned whether the Government possesses the financial and administrative capacity to accommodate over three million additional students and recruit nearly 150,000 teachers if the private school sector is weakened.

They further pointed out that Punjab's government school system continues to face significant structural challenges. As per UDISE+, the State has 2,431 single-teacher schools serving nearly 77,000 students, while 3,032 schools still lack internet connectivity and thousands of teaching positions remain vacant. Weakening private schools under such circumstances, they said, would only place additional pressure on the public education system.

The speakers also noted that over the past three years, inflation and operational costs—including electricity, EPF contributions, transportation, maintenance, technology, safety measures and other essential expenses—have risen substantially. Since private schools spend between 50% and 70% of their revenue on teachers' and staff salaries, restricting annual fee revision to only 5% would make it difficult to provide fair salary increments, potentially resulting in the migration of experienced teachers to other states and affecting the quality of education in Punjab.

They emphasised that Punjab's strong educational performance has been built through the combined contribution of both government and private schools. Education, they said, flourishes through trust, dialogue and partnership—not confrontation.