IIM-A hikes tuition fee by 7%

By Ruchi Shrimali

The Indian Institute of Management (IIM) Ahmedabad Society Board has decided to increase the tuition fee for the third time. The move has been prompted by high inflation in the economy. The hike is pegged at 7 per cent. This means that the two-year flagship program of IIM Ahmedabad, PGP, will now cost about Rs 15.5 lakh. Till the last year, it used to cost students around Rs 12.38 lakh.

IIM-A is also trying to raise funds by other means to manage its expenses. It is planning to raise five to eight per cent of its total requirement of Rs 140 cr by marketing its case study material and research to other B-schools in India and abroad. For the first time, it is also approaching corporates and alumni for direct contributions. It is also possible that IIM Ahmedabad may hike its placement fees this year. Read more about fund raising efforts at IIM Ahmedabad

The implementation of sixth pay commission and rise of operational costs due to inflation has led to hike in management education costs for last three consecutive years. In 2010, IIM-A had announced a fee hike of 9.6 per cent. In 2011 also, it had hiked its fees by 5.5 per cent. Read more

In sharp contrast, IIM Kozhikode slashed its tuition fees by Rs 30,000 for its 2012-2014 batch. The rollback of three per cent of the total fees means that its PGP program will cost students around Rs 9.7 lakh per annum. IIM-K was the first IIM to arrest the trend of fee hikes and was motivated by the fact that student loan rates in the last two years had increased from 2 to 4 per cent per annum. IIM Kozhikode has shifted its ‘orientation from exclusive elitism to inclusive excellence.' Know more about IIM Kozhikode

IIM Calcutta has also announced that it may slash its fees. It already has a scholarship scheme that benefits 160-170 students every year, which includes full tuition-fee waiver for some students. It had also announced that it will refund course fees of students who join a voluntary organisation or a public sector undertaking. To raise funds, IIM-C is looking to new source of revenue such as online education. Read more

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