IIM fee hike makes business sense: review panel

The IIM review committee set up to scrutinise the overall functioning of India’s premier B-schools is of the opinion that the recent fee hikes make business sense, reports Prasad Nichenametla.

The IIM review committee set up to scrutinise the overall functioning of India’s premier B-schools is of the opinion that the recent fee hikes make business sense.

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The hikes strike a balance between the revenue and expenditures of these institutions, the panel feels.

But the committee, which met here on Monday, is of the unanimous view that the IIMs should structure various modes of financial assistance. These include fee waivers, scholarships and loans to enable students from any economic segment to enter the institutes. "No student should be afraid to take the CAT (Common Admission Test) for fear of fees. Our effort would be to make IIMs as egalitarian as possible," Ajit Balakrishnan, chairman of the board of governors, IIM-Calcutta and a member of the committee told HT on Monday.

In contrast to its interim note prepared in the wake of the fee hike in the IIMs earlier this year, the committee has veered round to the view that the hikes make practical sense.

“After the hike, one of the IIMs is charging about Rs 3 lakh for a Post Graduate Programme which is now helping the institute function smoothly,” a member of the review committee said.

Of the seven IIMs in the country, some are not fully dependent on the government for their funds.

The review committee’s current opinion is in contrast to its interim note presented to the ministry in the wake of the IIM fee hike earlier this year.

The committee member clarified that the committee is not examining issues that would enable the government to formulate legislation along the lines of the IIT Act of 1961.

He indicated that it would not recommend any drastic changes on the functioning of the IIMs.

He said autonomy of the premier B-schools was not really an issue the committee is worried about.

“The IIMs enjoy a fairly good amount of autonomy. I do not see any problem with that. Anyway, power cannot be given. It has to be earned,” the member said.

RC Bhargava, chairman of the committee formed in October last year, said the panel would meet again and be able to submit its report by September-end.