IIM-B hikes fee by Rs 1.5 lakh

The Indian Institute of Management-Bangalore has decided to increase the fee for its two-year flagship postgraduate management programme by Rs 1.5 lakh (Rs 150,000) for the 2009-11 batch.

The hike will be Rs 75,000 for the first year and Rs 75,000 for the second year. This means that the students will pay Rs 5.25 lakh (Rs 525,000) in the first year, compared with Rs 4.5 lakh (Rs 450,000) earlier, and Rs 5.75 lakh (Rs 575,000) in the second year, compared with Rs 5 lakh (Rs 500,000) earlier.

Announcing the fee hike on Thursday, IIM-B Director Pankaj Chandra said the institute was increasing the fee as it was bearing an additional cost due to the wage increases following the Sixth Pay Commission. In addition, the institute was also paying increased pension to 200 pensioners.

Chandra said the institute was also taking up the construction of hostels, classrooms and staff quarters to accommodate the increase in reserved seats.

IIM-B is also increasing the number of students on its campus to 350 for 2009-10 from the current 270. "We are adding one more section to accommodate the increase," Chandra added.

In addition to the flagship MBA programme, IIM-B is also taking in 75 students for its executive postgraduate management programme, public policy programmes and fellow programmes. "Taking all these programmes, at the end of the admission cycles, the total enrolment would be 1,200 students from last year's 962," said Chandra.

He also said another reason for the increase in fees was that during the past five years, the Union government had not facilitated any grants.