Click to play videoAhmedabad: The Indian Institute of Management Ahmedabad is in no mood for a roll-back on its fee-hike. It will stick to the Rs 5.50 lakh for the first year and Rs 6 lakh for the second year for its postgraduate programme.
"On the issue of fees, the board's decision stands. I don't see why it should be rolled back. I don't see any reason," said IIM-A Chairman Vijaypat Singhania.
The steep fee-hike comes despite IIM-A posting a surplus of about Rs 6 crore every year.
“We want to have a graded fee structure which allows us to give assistance to students from low income families. Now we are going to admit 17 OBC students who will be under the Rs 2.5 lakh per annum income category, so the burden on the institute in terms of scholarship will increase. We have thus decided to go with the decision on March 29th," says Director, IIM-A, Sameer Barua.
CNN-IBN had access to an independent report, which said there was no need to charge students Rs 11.5 lakh for the institute to stay afloat.
The review committee set up to look into the steep hike in its fees will submit its report in another two months. However, they say they don't have the power to influence the institute's decision.
"The decision is still that of the IIMs. We will give our recommendations, but the power rests with IIMs. It doesn't rest with the Committee. We will ensure nothing,” said chairman of the review committee R C Bhargava.
In comparison, IIM-Calcutta, that earns lesser revenue, has fixed the annual fees for its flagship postgraduate programme at Rs 3 lakh.
"Even with three lakh fees, we (IIM-C) were making a reasonable profit. People from middle class send their children to IIMs. It’s important that we don't frighten off people with high fees," IIM-C Chairman Ajit Balakrishnan said.
And it seems the criterion for a 300-per cent hike at IIM-A appears more to be that of cashing in on brand value than recovering costs.
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