IIMs see red over proposed clause that seeks to limit fees commensurate with expenses

By: | Published: June 21, 2018 12:43 PM

Indian Institutes of Management (IIM) have expressed their reservations to a provision in the draft rules under the new IIM Act that seeks to put a condition on the tuition fee charged by the 20 premiere business schools.

iim news, indian institute of management, iims fees objection, iim act, hrd ministry, iim business schools, iim bog, old iims, iims fee, iims fee row, iim tution fee, iims act new draft, iim provisions, iim education, hrd ministry draftThe older institutes like IIM Ahemdabad and Banglore have objected to the clause which makes it mandatory for the Board of Governors (BoG) to “ensure that the fee charged from the students shall commensurate with the overall expenditure for maintenance and expansion of the institute.” (Express photo)

Indian Institutes of Management (IIM) have expressed their reservations to a provision in the draft rules under the new IIM Act that seeks to put a condition on the tuition fee charged by the 20 premiere business schools.

Last week, a copy of the draft rules was shared with the IIM chairpersons for feedback by the HRD Ministry.

According to The Indian Express, the older institutes have objected to the clause which makes it mandatory for the Board of Governors (BoG) to “ensure that the fee charged from the students shall commensurate with the overall expenditure for maintenance and expansion of the institute.”

Since the older communities don’t take any funds from the government for maintenance and expenditure, they are finding this provision more uncomfortable, IE reported citing a source in the IIM community.”The IIM Act explicitly gives the Board the right to fix fee. For the IIMs, the tuition fee generates half of the internal resources and since the older institutes (IIMs in Ahmedabad, Bengaluru, Kolkata, Lucknow and Khozikode) do not take money from the ministry, this is our protection.”

The prestigious business schools charge between Rs 10 lakh to Rs 22 lakh as their tuition fee for the two-year post-graduate programme. The education at IIMs is not subsidised by the government, unlike the IITs.

Reacting to IIM’s concerns, a senior official at the HRD ministry was quoted as saying: “There is no absolute cap on the tuition fee. We just don’t want the fees to be increased arbitrarily. We are just saying it in public interest that fee charged should be commensurate with their expenditure and future plans.”

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition