"We have decided to hike the fee from Rs 2.5 lakh to Rs 4 lakh for 2008-09," IIMB director, Pankaj Chandra said after a meeting of the Board presided by its chairman Mukesh D Ambani.

The students who would be going into the second year (2009-10) will have to pay Rs 5 lakh as fee, he said.

Defending the hike, which is higher compared to the other three IIMs, Chandra said increasing infrastructure was one of the reasons for the hike.

On the scholarship offered, he said, the amount has been enhanced from Rs 91 lakh to Rs 1.5 crore for 2008-09. To a query on the eligibility criteria for the scholarship, Chandra said "we are looking into the matter".

On the selection  process for the incoming batch, IIM-B officials said group discussions and personal interviews are already on and will be completed on April 4. The selection list will be announced on April 11, they said.

Meanwhile, for the first time in the history of IIM-B, the whole PGP (Post Graduate Program) batch, comprising 250 students, have contributed their caution deposit of Rs 9,000 each to "CLASS of 2008 Fund".

The main intention of this fund is infrastructure development of the college and contribution towards the social service organisation "IIMB-VIKASANA".