As part of the protest, they have called for an indefinite bandh from September 15.

The Federation of Associations of Telangana Institutions (FATI) said that if the arrears were not released, the agitation would be intensified. More than 1,500 engineering, MBA, MCA, BEd, pharmacy and nursing colleges will shut down, affecting about 10 lakh students, federation leaders said.

Colleges say arrears reached ₹10,000 crore

Managements said the government had failed to clear fee reimbursement dues amounting to nearly ₹10,000 crore. FATI, formed to press for fee reimbursement and scholarship arrears, has met deputy chief minister Bhatti Vikramarka, chief secretary Ramakrishna Rao and other senior officials, but not a single rupee has been released, they said.

In a proposal to the government, college managements suggested setting up a dedicated trust bank with ₹1 lakh crore deposits. The corpus could be raised through corporate social responsibility funds and other contributions, and the 7% annual interest, estimated at ₹3,000 crore, could be used to reimburse fees. But the state did not respond, forcing colleges to announce the bandh.

FATI has also decided to observe Engineers' Day as a "Black Day" to protest the non-release of funds.

Degree and PG colleges join from September 16

The Telangana Private Degree and PG Managements Association (TPDPMA) also announced support for the bandh. Association president Suryanarayana Reddy and general secretary Y Rama Krishna said all degree and postgraduate colleges would close from September 16. On Friday, they staged a protest outside the Telangana State Council of Higher Education office.

Managements warn of staff crisis

"Since the chief minister also holds the education portfolio, we expected priority to be given to education. But for six months we have been going around the government for release of ₹10,000 crore arrears. We even suggested an alternative plan, but there is no response. Staff have warned they will stop work from Monday if salaries are not paid. We are forced to call for an indefinite bandh," said FATI chairman Ramesh.

College owners said they were unable to pay staff salaries for the past six months. "We cannot even go to colleges during daytime. We visit only in the evening to sign registers. We have met deputy chief minister Bhatti four times, but nothing has moved," they said.