The sharp increase in fee structure by IIMs compared to marginal hike by private B-schools for their flagship PGP 2016-18 programmes may not see eye to eye with Ministry of Human Resource Development after AICTE made public the recommendations of the report submitted by National Fee Committee headed by Justice B. N. Krishna.
If you are a selected candidate for PGP 2016-18 at IIMs or PGDM 2016-18 at XLRI, MDI, SPJIMR, weigh all pros & cons on all parameters like infrastructure, learning, placement, legacy apart from the revised fee structure before arriving at the final admission decision to your preferred B-school.
On the one hand the National fee committee proposes to put a cap of Rs. 1.71 lakhs for 2 year MBA programme, and even the autonomous and accredited institutions are not allowed to charge more than an additional 20% tuition fees from students; on the other hand depicting the darker side, instead of reducing the fee structure of IIMs, the respective Board of Governors (BoGs) at the IIMs have openly called the shots by giving a steep rise in the fee for flagship PGP and other programme from 2016.
Another key point emerging out of the fee hike announced by the IIMs consecutively one after other, is whether the costs and overheads are rising for IIMs only and not for private B-schools? Going by the same standard, the top private B-schools like XLRI, XIMB, MDI, SPJIMR, NMIMS, MDI, IMT, IMI, BIMTECH, TAPMI who are second to none and have opted for a marginal rise in fee, may also increase their fee structure in the same ratio for flagship PGDM programmes.
At that time would MHRD call the rise a foul or impress upon the IIMs to reduce the fee? The fee rise in IIMs is despite the fact that all IIMs get high grants and payments from Government of India, while private B-schools despite performing equally well do not get any support from the Government of India.
7 Older IIMs: Taking the lead
The fee hike spree is led by top 7 IIMs and out of them many of them also revised their fee structure upwards a year ago. Despite getting good placements, candidates have to arrange for the funds for their study period and enormous volume of Bank interest on study get accumulated by the time the student get the PGDM equivalent to MBA from these top B-schools.
IIM Ahmedabad: Leader sets the pace
The fee structure at IIM Ahmedabad for flagship PGP 2014-16 batch was Rs.16.5 lakhs. The top ranked B-school increased its fee by Rs.2 lakhs in 2015 from Rs. 16.5 lakhs to Rs18.5 lakhs for PGP 2015-17 batch.
Again for the PGP batch 2016-18, IIM Ahmedabad has increased the fee by Rs.1 lakh by 5.4% from the last year. Now the candidates selected for PGP 2016-18 batch will have to pay Rs.19.50 lakhs.
IIMA-Current fee: Rs.18.50 lakhs
IIMA-Proposed fee:Rs.19.50 lakhs
IIM Bangalore: Increased last year
IIM Bangalore while increasing its fee in 2015 got the tag of costliest IIM in India. This fact has probably restrained it from going for any further fee hike in 2016.
For the flagship 2 years PGP 2014-16 batch IIM Bangalore had the fee structure of Rs.17 lakhs. In the year 2015, the fee was increased by more than 10% from Rs. 17 lakhs to Rs.18.70 lakhs for the PGP 2015-17 batch. It is very much possible that following the footsteps of IIM Ahmedabad, IIM Bangalore also opts for another fee hike for PGP 2016-18 batch.
IIMB-Current fee: Rs.18.70 lakhs
IIMB-Proposed fee: Not announced, already high
IIM Calcutta: 17% hike
IIM Calcutta increased its fee in 2014 by 20% and pegged it to Rs.16.30 lakhs. After 2 years, this top rated B-school has again increased the fee by about 17% from Rs. 16.30 lakhs to Rs. 19 lakhs. Despite all the justification for the fee hike, those who are going to take admission in IIM Calcutta will have to think wherefrom they will arrange the additional Rs. 2.70 lakhs.
IIMC-Current fee: Rs.16.30 lakhs
IIMC-Proposed fee: Rs. 19 lakhs
IIM Lucknow: 30% hike
The only IIM who reduced the fee in 2013 from Rs. 12 lakhs to Rs.10.80 lakhs and hit the headlines has also gone on fee hiking spree with highest percentage hike in fee. IIM Lucknow has increased its fee from Rs. 10.80 lakhs to Rs.14 lakhs recording a hike of 30%.
However, despite the steep hike, IIM Lucknow still remains the lowest fee charging among top 4 IIMs.
IIML-Current fee: Rs.10.80 lakhs
IIML-Proposed fee: Rs. 14 lakhs
IIM Indore: No hike proposed so far
For the last 2 years IIM Indore has been maintaining its fee for 2 years flagship PGP programme to Rs.13 lakhs. There is also no proposal so far to enhance the fee structure at IIM Indore although its peers have made upward revisions.
IIMI-Current fee: Rs.13 lakhs
IIMI-Proposed fee: Rs. 13 lakhs
IIM Kozhikode: 23% hike
The hike in fee as announced by IIM Kozhikode has placed its PGP programme costlier than that of IIM Lucknow from the coming 2016-18 batch. IIM Kozhikode has announced a 23% hike in fee from existing fee of Rs. 13 lakhs to Rs.16 lakhs for the forthcoming PGP 2016-18 batch.
IIMK-Current fee: Rs.13 lakhs
IIMK-Proposed fee: Rs.16 lakhs
IIM Shillong: No increase proposed
Rajiv Gandhi institute of Management IIM Shillong has not yet proposed any fee hike for its PGP 2016-18 batch. It appears that the IIM Shillong may continue with its current fee structure of Rs.12.68 lakhs.
IIMS-Current fee: Rs.12.68 lakhs
IIMS-Proposed fee: Rs.12.68 lakhs
Private B-schools opt for marginal rise
As against steep fee hike in the range of 6% to 30% resorted to by IIMs for PGP 2016-18 batch, highly ranked private B-schools have refrained from going for steep fee hike and have only marginally increased their fee for flagship PGDM 2016-18
BIMTECH Greater Noida: No hike proposed
The fee structure for flagship PGDM 2016-18 batch is proposed to be kept at same level at BIMTECH Greater Noida.
BIMTECH-PGDM: Current fee-Rs.10 lakhs
BIMTECH-PGDM: Proposed fee-Rs.10 lakhs
IMI Delhi: 3% hike
IMI Delhi, one of the highly ranked private B-schools in the country has proposed only 3% hike in its fee structure. The fee for flagship PGDM programme is proposed to be increased by only Rs.46000/- from Rs.14.50 lakhs to Rs.14.96 lakhs
IMI Delhi-PGDM: Current fee-Rs.14.50 lakhs
IMI Delhi-PGDM:Proposed fee-Rs.14.96 lakhs
IMT Ghaziabad: No increase
IMT Ghaziabad, one of the highly ranked and recently AACSB accredited B-school does not propose to increase the fee structure for its flagship PGDM 2016-18 batch.
IMT Ghaziabad-PGDM: Current fee-Rs.15 lakhs
IMT Ghaziabad-PGDM:Proposed fee-Rs.15 lakhs
MDI Gurgaon: 7% hike
MDI Gurgaon, one of the most sought after top private B-schools in India has proposed an increase of 7% in its fee structure from Rs. 15.96 lakhs to Rs.17.15 lakhs.
MDI Gurgaon-PGDM: Current fee-Rs.15.96 lakhs
MDI Gurgaon-PGDM:Proposed fee-Rs.17.15 lakhs
SPJIMR Mumbai: No further fee hike
SPJIMR, Mumbai one of the top rated and most preferred private B-school with many USPs has not proposed any fee hike further despite offering Global immersion. It proposes to keep its fee at the same level of Rs.14.50 lakhs.
SPJIMR, Mumbai-PGDM: Current fee-Rs.14.50 lakhs
SPJIMR, Mumbai-PGDM:Proposed fee-Rs.14.50 lakhs
XLRI, Jamshedpur: 7% hike proposed
The top ranked Private B-school in India XLRI, Jamshedpur may hike the fee for its flagship PGDM programme by 7%, according to Sunil Varughese, chief brand and sustainability officer at XLRI.
XLRI, Jamshedpur-PGDM: Current fee-Rs.17.95 lakhs
XLRI, Jamshedpur-PGDM:Proposed fee-Rs.19.20 lakhs (Not announced)
You are supposed to take a decision judiciously weighing all the other parameters like legacy, infrastructure, faculty, placement apart from fee structure while finalizing the admission to one these top B-schools in India.
Stay tuned to MBAUniverse.com for more updates on MBA 2016
