If you are planning to get into any of the India's most premier business institutes, then get ready to shell out more money as IIMs are set to hike fees by 5-17 per cent for the 2018-20 batch. The Economic Times today reported that at least nine IIMs have either increased or are in the process of increasing the fees due to inflationary pressures and higher operational expenses that includes faculty salaries and infrastructure costs.
IIM Rohtak director Dheeraj Sharma told the ET that increasing fees is now becoming a compulsion for older and mid-level business institutes. "After the first 10 years, IIMs are required to generate their own revenue and sustain themselves through their own corpus. Faculty salaries go up, cost of messes goes up, cost of hospitality, security, infrastructure, security goes up, thus necessitating a hike," the business daily quoted Sharma as saying.
IIMs charge fees between Rs 9 lakh and Rs 20 lakh for two-year postgraduate programme. However, after the increase, fees could go up to Rs 22 Lakh. Among IIMs increasing fee this year are IIM-Bangalore, IIM-Indore, IIM-Ahmedabad, IIM-Calcutta, IIM-Rohtak, IIM-Trichy, IIM-Udaipur and IIM-Amritsar.
Earlier in March, IIM-Ahmedabad hiked the fee by Rs 1 lakh. Speaking on the hike, IIM-A Director Errol D'Souza said: "In line with inflation, we shall be raising it by 5 per cent. For PGP program the new fee will be Rs22 lakh for two years. There will be 5 per cent increase in PGPX (Post Graduate Program for Executives) fee as well."
IIM-Calcutta has also raised fees by Rs 1 lakh. IIM-Ranchi has hiked fees from Rs 12.5 lakh to Rs 14 lakh.
Last year, the Rajya Sabha passed a bill, extending greater autonomy to IIMs by restricting the government's role in their functioning and granting them power to award degrees to their graduates. The Indian Institutes of Management Bill-2017 grants statutory powers to all the IIMs in their running including appointment of directors, faculty members besides giving them powers to award degrees instead of post graduate diplomas.
Speaking on the bill, HRD Minister Prakash Javadekar said: "Through this bill we will remove all interference of the government, bureaucracy in the functioning of the IIMs. They will themselves decide how to manage and run these premier institutes."