In a move that many feel is directed towards gaining popularity for the forthcoming assembly elections, the Centre has announced the reduction of IIM fees to Rs 30, 000 a year instead of the existing Rs 1.5 lakh
In addition, the total number of seats in the IIMs will be doubled from the existing 900 to 1800. Earlier the U.R.Rao committee had suggested pegging the fees down at Rs 6000 per year, which translates to 30 per cent of the country’s per capita income.
According to ministry sources, this decision was taken to ”ensure that technical education does not remain unaffordable to capable but poor students.”
However, according to opinions amongst the faculty and students at the IIMs, reducing the fee will mean lesser funds for research, guest faculty, better professors and improved tools.
The new fee structure was worked out at a meeting between HRD Minister Mr Murli Manohar Joshi and the directors of the six IIMs on 31 January 2004.
This reduction in fees comes on the heels of the finance ministry cutting the allocation for the IIMs for 2004-05 to Rs 45 crore from Rs 74.73 crores in 2003-04.
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