The State Government requires about 1,100 hostel buildings including 400 newly established hostels across the State to run college hostels for boys and girls belonging to SC, ST and BC communities.

The officials found that the building owners were reluctant to give their buildings on rent to the welfare hostels as the rent amount i s very less when compared to market rate.

The problem is severe in cities like Hyderabad, Visakhapatnam, Vijayawada and Tirupati where the buildings rents are skyrocketing.

Chief Minister K Rosaiah today gave his nod for the proposal of increasing the rent of hostel buildings.

The officials will invite open tenders to hire buildings in municipal corporations, while the buildings in other areas will be hired as per Roads and Buildings Department norms.

Further, the Government has decided to obtain loan from HUDCO for constructing 77 integrated hostel complexes of which 22 hostel complexes have been already constructed.

Meanwhile, a Cabinet sub-committee will be constituted to frame guidelines for reimbursement of scholarships for economically backward class (EBC) students.

The Government has already allocated Rs 350 crore in the recent budget and is framing guidelines for implementation of the scheme.

The disbursement of scholarships for EBCs has been entrusted to the BC Welfare department.