In a significant decision aimed at benefiting a large number of students, the human resource development ministry on Thursday decided to drastically reduce the fees for the post-graduate programmes in the Indian Institutes of Management to Rs 30,000 per annum from around Rs 150,000 per annum.
A decision to this effect has been taken after considering the recent Supreme Court order and the Review Committee, which went into the issue, the ministry said in its order.
The revised fee structure would take effect from the academic session 2004/05.
Observing that the fees charged by the IIMs at Ahmedabad, Bangalore, Kolkata, Lucknow, Indore and Kozhikode was around Rs 150,000 per year, which was "exorbitant", the ministry said these institutions were fully funded by the central government and their financial requirements were met through the central budget.
"After careful consideration of all aspects, it has been decided that the fees for the post-graduate programmes in the IIMs should be fixed at Rs 30,000 per annum," it said.
No other charges or fees should be levied from the students in addition to the prescribed fees except for mess charges that would be payable by the students separately, the release said.
The ministry also sought a compliance report from the IIMs.
IIMs have been set up by the government with the prime objective of providing quality education, training and research in the field of management, the ministry said.
A review committee set up by the government under the chairmanship of Prof U R Rao has also suggested in its report that "it is unjust and even unwise to make technical education unaffordable to capable but poor students".
The committee also observed that commercialisation of education has adverse effect on the character and attitudes of students and parents, which was not desirable for the good of the society.
The committee in its report also observed that in order to encourage technical education and to make it affordable, fees should be pegged to 30 per cent of the country's per capital income or Rs 6,000 per year.
More from rediff