The Indian Institute of Management-Calcutta on Tuesday accepted the drastic fee cut proposed by the government.

Y C Deveshwar, chairman of the board of governors, IIM-Calcutta, circulated a resolution among directors accepting the recommendation of the government on the fee cut issue.

• The IIM Controversy: Complete Coverage

"In a bid to find a way forward, the government order regarding fee cut may be implemented," the draft resolution said.

Deveshwar had been authorised by the IIM-C board at its meeting on March 26 to draft a resolution in this regard in the light of the discussions at the meeting.

The resolution also said that the decision by the board was taken in view of - "(a) the assurance by the ministry that the financial consequences of implementing the government order will be fully funded by the government and will not adversely impact the institute's plans to develop world-class teaching and learning infrastructure, and

(b) the explicit understanding that the fee cut will not result in any infringement of the empowerment of the board as contained in the Memorandum of Association and that the empowerment of the director and the faculty bodies operating within the MOA will not be curbed as a consequence".

The draft prepared by Deveshwar also spoke about a review of this decision should the experience be any different on the issues on which the ministry has given an assurance.

It further clarified that the decision of the board meant that the new fee structure of the IIM-C would be based on the theory of current net fee minus the subsidy provided by the ministry of human resource development through equivalent funding of IIM-C.

The current fee at the IIM-C is Rs 125,000 annually which has to be brought down to Rs 30,000 annually as proposed by the Centre.