The Centre?s decision to set up seven more IIMs in the country will cost the government between Rs 200 and Rs 210 crore, if the land is provided free-of-cost by the state government.
The government is, however, planning to rope in the private sector for this purpose.
?We are working out the cost of setting up IITs and IIMs in terms of cost and logistics. The central government is also looking at the public-private partnership (PPP) model to involve the private sector in some ways,? Planning Commission member BL Mungekar said.
?Which activity these days does not involve the private sector?we are therefore looking at extending it to higher education,? he added.
?But the budget may shoot up if the central government has to pay for the land. But if the state government decides to subsidise, the cost of creating a new IIM should go beyond Rs 30 crore,? says chief administrative officer of Indian Institute of Management (IIM) Calcutta Dinesh Verma Verma. Verma thinks it would take the central government to invest anything between Rs 25-30 crore over an area of 100 acres in a city like Bhubaneshwar to build a new IIM.