Financial Daily from THE HINDU group of publications
Friday, Feb 06, 2004
Industry & Economy - Education
Govt slashes IIM course fees to Rs 30,000
New Delhi , Feb. 5
THE Government on Thursday drastically cut the fees for Post-Graduate programmes at the Indian Institutes of Management (IIMs) to Rs 30,000 per annum from over Rs 1.5 lakh per annum.
"It has been decided that the fees for the Post-Graduate programmes in the IIMs should be fixed at Rs 30,000 per annum. No other charges or fees shall be levied on the students except for mess charges that would be payable by the students separately. The revised fee structure will take effect from the academic session 2004-05," an order issued by the Human Resource Ministry to the six IIMs said on Thursday.
The decision has been taken after considering the recent Supreme Court order and the report of a Review Committee that went into the issue, the HRD Ministry order said.
The order said that the fees charged by the IIMs at Ahmedabad, Bangalore, Kolkata, Lucknow, Indore and Kozhikode at around Rs 1.5 lakh per annum was "exorbitant," considering that these institutions were fully funded by Central Government and their financial requirements were met through the Central Budget.
The Ministry has also sought a compliance report from the IIMs.
Observing that the matter of revision of fees charged by the IIMs has been engaging the attention of the Ministry for some time, the order said the Apex Court had recently observed that "an educational institution cannot charge such a fee as was not required for the purpose of furthering the object."
Our Bangalore Bureau adds: Dr A.H. Kalro, Director, IIM, Kozhikode, who was in Mumbai, told Business Line, "As we are yet to receive a communication from the Government, we cannot comment on the issue." Other sources at IIM, Bangalore, said, "The Government should have reduced the fees gradually, over a period of time."
A former Director of IIM, Bangalore, said, "It will put the IIMs at a serious disadvantage, especially now when globalisation is taking place at a hectic pace." His argument is simple: An average graduate from the IIM earns about Rs 6 lakh and "he or she can easily repay the loan in one year."
He further added that the Government should have followed the `sunset clause' where it would handhold the institute up to a certain point and let it become independent once it is able to support itself.
Dr Prakash G. Apte, Director, IIM, Bangalore, who had spoken to this reporter earlier on the allocation cut issue, had said that the move would impact the newer IIMs more than the older ones. "Moreover, till we know the allocation to the planned grant and unplanned grant, nothing can be said," he had commented.
Dr Kalro, in a non-committal statement said, "It will not affect us."
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