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IIM Fees Cut to Rs 30,000/- Per Year The drastic cut in student fee comes on top of a 40 percent reduction in government support to the institutes. While HRD minister Murli Manohar Joshi had assured that the IIMs will never be starved of funds - provided they carry on with their 'good work' - things look rather bleak for them within the span of three days. The big three are relatively well off. IIM Ahmedabad is the richest with a corpus of Rs 98 crore, while the other two are sitting on at least Rs 80 crore each. However, the three new IIMs - at Lucknow, Indore and Kozhikode - are young and haven't yet built financial reserves. For them, therefore, the cut in fee would hurt the most. In turn, this might have an impact on the quality of the faculty and, in turn, the education they impart. For the IIMs, income is generated from five sources in addition to the grants recieved from the government. These income heads are fees, research, executive mangement programmes, consulting and interest earned on corpus. In Ahmedabad, Bangalore and Kolkata, income from fees accounts for about 25 percent of their total income. The institutes at Lucknow, Indore and Kozhikode are much more dependant on fee income - some estimates put this figure at higher than 50 percent. The revised fee will be effective from the academic session 2004-05. The ministry also sought a compliance report from the IIMs in this regard. On Saturday, directors from six IIMs had met the minister and had surprisingly agreed to the revised fee structure. |
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