The decision to slash fees across all the Indian Institutes of Management was not taken to impress the vote bank, according to Union Minister of Human Resources and Development, Murli Manohar Joshi. Speaking to Business Standard, Joshi highlighted the point that if premier government-run institutes become market-driven on the subject of fees, it would not be possible to check fees of private institutes.

When asked about the timing of the government's decision to announce the fee-cut, Joshi said the ministry had been telling the IIMs to reduce fees for the past few years. According to him, the IIMs cannot charge hefty fees and at the same time seek grants from the government.

Stating that it was a government stipulation that all autonomous bodies receiving grants should sign a Memorandum of Understanding with it, Joshi added that the ministry was merely implementing the directives of the government. Signing of the MoU would result in release of grants to the IIMs.

"The Expenditure Reforms Commission had written to these institutes regarding their recommendations," Joshi said.

These institutes must sign a MoU relating to the allocation of grants and also on how the expenditure should be made.

As this MoU was pending, the ministry of human resources and development merely decided to execute its task. As they did not sign the MoU, we decided to write to these institutes asking them to reduce fees.

However, it has nothing to do with the elections. The recommendations of the Expenditure Reforms Commission came before our announcement to slash fees," Joshi said.