IIMs do not want government say in fee structure

The Indian Institute of Management (IIMs) are not in agreement with the government regarding a provision in the draft rules that seeks to put a condition on the tuition fee charged by the management institutes.

Last week the Ministry of Human Resource and Development shared the draft rules, with the IIMs for their feedback. The ministry wants to bring in a set of rules which may allow it to have a say in the fee structure, student intake capacity, gender equation on campuses, degrees offered and the amount of the corpus the IIMs can maintain.

According to a report by The Indian Express, some of the older IIMs have objection to the clause in the draft rules that allows the Board of Governors (BoG) to “ensure that the fee charged from the students shall be commensurate with the overall expenditure for maintenance and expansion of the institute”.

The reason behind older IIMs’ objection to this is the fact that these institutes including IIM Ahmedabad, IIM Bengaluru, IIM Kolkata, IIM Lucknow and IIM Kozhikode do not take funds from the government for maintenance and expenditure. Also, these institutes fear that this may become an issue of disagreement between them and the government in future.

The ministry on the other believes that a check on fee hike is just to ensure that the students do not suffer due to arbitrary fee hike which is why the clause has been proposed. There is no restriction on increasing the tuition fee, the ministry assured.

The IIM Act passed last year in the Parliament, gives the elite institutes more autonomy in matters related to day to day activities, administrative decisions as well as decisions related to academic and financial aspects of the institute; besides allowing them to offered degrees instead of diplomas.

Some of the older IIMs also do not approve of the provision of MoUs with the government on performance parameters, student intake, expansion of institute and output targets.

Some of the other provisions of the draft rules on which the government has sought feedback from the IIMs are:

• The process of appointment of the institute chairperson should begin three months before the term of the incumbent ends and should be completed a month before his/her retirement. In case a new chairperson is not selected within the time frame, one of the board member will be appointed as the acting chairperson, by the government
• The chairperson’s term will end as soon as he/she turns 74 years or on the completion of four years.
• No person shall be director of an IIM for over two terms. The retirement age of directors has been extended from 65 to 70 years.

• A chairperson can be removed only through consensus of the Board of Governors. Such action can be taken only if it is approved with two-third majority.
• Neither the chairman nor any Board member should have a conflict of interest with the institute. If a conflict of interest is discovered later, then the concerned person will have to resign.
• The government has the power to issue directions to the IIMs if they are found to be acting in contravention of the Act. Such directions shall be binding.
• 13 new IIMs can co-opt alumni of older IIMs as board members.
• In case of any doubts regarding any provisions of the rules, IIMs may seek clarification from the government and the clarification provided shall be final.
  
  The table below reflects the total tuition fees of all the 20 IIMs:
  

  IIM	PGP fees (total tuition fee)
  IIM Ahmedabad	Rs 22 lakh
  IIM Bangalore	Rs 21 lakh
  IIM Calcutta	Rs 21 lakh
  IIM Lucknow	Rs 14. 16 lakh
  IIM Kozhikode	Rs 17.50 lakh
  IIM Raipur	Rs 12.31 lakh
  IIM Udaipur	Rs 13.67 lakh
  IIM Rohtak	Rs 12 lakh
  IIM Visakhapatnam	Rs 10.5 lakh
  IIM Trichy	Rs 10 lakh
  IIM Sambalpur	Rs 10 lakh
  IIM Ranchi	Rs 10.5 lakh
  IIM Bodhgaya	Rs 11 lakh
  IIM Sirmaur	Rs 9 lakh
  IIM Jammu	Rs 10 lakh
  IIM Amritsar	Rs 9 lakh
  IIM Shillong	Rs 12.68 lakh
  IIM Kashipur	Rs 10.50 lakh
  IIM Nagpur	Rs 10 lakh
  IIM Indore	Rs 13 lakh

   

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