Students aspiring for a seat in some of the coveted Indian Institutes of Management (IIMs) will feel the pinch from the next academic year, as some of the institutes are planning to hike their fees.
While IIM Ahmedabad hiked its fees for the flagship post graduate programme (PGP) in November by over 11%, it has been learnt that IIM Bangalore, Udaipur, Rohtak and Trichy may soon follow suit.
With the board of governors’ meeting, where fee hikes are usually discussed and implemented, scheduled in March, the IIMs remain tight lipped about the hike.
“We have not decided anything yet, but by January the picture will be clear whether a fee hike is necessary or not,” the spokesperson for IIM Bangalore said.
According to P Rameshan, director of IIM Rohtak, inflation increased academic costs by almost 30% to 40% in the last few years, leading institutions to consider hiking their fees. IIM Rohtak had last hiked its fees in 2011-12 from Rs 6.1 lakh to Rs 9 lakh.
“There is much scope for a hike, but several issues have to be taken into consideration before increasing fees. We have not hiked our fees for four years, even though salaries of faculty members continue to rise,” Rameshan said.
IIM Udaipur has also not hiked fees since its inception and is likely to announce one in January, said an official at the institute.
However, sources in one of the new IIMs say that a hike of at least 10% in flagship programmes is expected across four or five IIMs.
With the IIM fee structure becoming increasingly steep, students and professionals are now re-thinking whether to join IIMs or not. Taking student loans and paying them off is a big liability, said an aspirant.
“Last year I got admission at IIM Calcutta and Lucknow for PGP courses. However, considering the fact that the fees go over Rs 10 lakh, I would have had to take a loan. So, I dropped the idea and took up a job instead,” Mitali Seth, a marketing professional with an MNC, said.
The dean of academics at IIM Calcutta, Anindya Sen, said that since the institute had raised its fees by 20% only last year, another hike was very unlikely. “We will hike fees occasionally so that students are not burdened. The hike last year has helped us provide better facilities. With rising costs, rise in fees is inevitable” said Sen.
* While IIM Ahmedabad charges Rs 18 lakh for the two-year PGP programme and IIM Bangalore charges Rs 17 lakh, the same course costs Rs 16.2 lakh at IIM-C, after it hiked fees in April 2014
* The fees across IIMs have gone up considerably since 2009, when IIM Ahmedabad and Bangalore hiked fees almost simultaneously
* While IIM Bangalore had raised fees from Rs 9.5 lakh to Rs 11 lakh, IIM Ahmedabad hiked fees to Rs 12.5 lakh in the same year
* IIM Trichy charges Rs 10.1 lakh for the Post Graduate Programme (PGP) in Business Management, while IIM Rohtak and Udaipur charge Rs 9 lakh.