The hikes were announced on Tuesday following a board of governors' meeting at the institute.
According to information shared by IIM-C with MBAUniverse.com, "First-year students will have to shell out Rs 1 lakh more from this session, with the annual fee being increased to Rs 3 lakh from Rs 2 lakh. The fee will be further raised to Rs 4 lakh in 2009. Second-year students, however, have been spared any fee increase."
IIM-C director Prof Shekhar Chaudhuri said, "The decision was also taken keeping in view the fee increase at IIM-Ahmedabad, IIM-Bangalore and other institutes." IIM-Bangalore, in fact, has increased annual fees for first-year students to Rs 3.5 lakh.
IIM-C has also brought about a change in the need-based scholarship scheme. So far, students from households with annual incomes of up to Rs 2 lakh were eligible for scholarships offered by the institute. According to IIM-C, "From this year, the eligibility margin has been increased to Rs 4 lakh. "
Prof Shekhar Chaudhuri said, "Costs have risen and are expected to increase even further once the Sixth Pay Commission recommendations are implemented, which will increase all salaries at the institute."
Moreover, IIM-C incurs a deficit of Rs 1.5 lakh on every student each year. "The cost of teaching and hostel facilities, together with other privileges for students, amount to a staggering Rs 3.5 lakh every year. The fee increase will help us meet growing expenditures, while providing students better opportunities and improved facilities," said IIM-C chief administrative officer Dinesh Verma.
According to IIM-C, "The fee hike will also allow Eastern India's premier business school more freedom, while making budgetary allocations and make it more self-sufficient."
"There are at least 25-30 students whose fee was waived every year. The new scheme will encourage more students from financially weak backgrounds to seek admission," added Prof Shekhar Chaudhuri.
