Last Updated: March 21, 2023, 17:49 IST
The Indian Institute of Management, Ahmedabad (IIM-A) has increased the fee for various courses over the past few years and the total collection of tuition fees for PGP and PGPX programmes in 2020-21 stood at Rs 105 crore, according to the Union Education Ministry.
Replying to a question on the fee hike by IIM-A for various management courses in Lok Sabha on Monday, Subhas Sarkar, Minister of State for Education, said that as per the information provided by IIM-A, the total tuition fee in the financial year 2006-07 was Rs 17 crore for 326 students of PGP and PGPX programmes while this was 105 crore for 590 students of PGP and PGPX programmes in 2020-21.
The minister was replying to questions raised by Manish Tewari, Congress MP from Anandpur Sahib, who had highlighted the issue of the exorbitant rise in fees by IIM-A.
Tewari had asked whether IIM-A fees increased 575 per cent in the last 15 years between 2007 to 2022, while the inflation index growth for the same period has only increased 146 per cent. He also questioned whether IIM-A invested Rs 1345 crore in Government securities, term deposits, etc. in 2001 and the said investments increased by 136 crore in one year alone implying that the tuition fees of Rs 105 crore were collected to be banked.
Responding to the question, MoS Sarkar said, “Cumulative investment of the Institute was built over years and as reported by IIM-A, it was Rs1345 crore as of 31.03.2021. The investment increased by Rs136 crore from the financial year 2019-20 to 2020-21. The tuition fee of Rs 105 crore is one of the receipts. The other receipts were through Executive Education programmes, consulting fees, etc. The surplus generated by IIM-A in the years 2020-21 and 2021-22 was Rs 51 Crore and Rs 47 crore respectively.”
The minister informed the House that the ace management institute used the corpus fund towards construction, upgradation and maintenance of the main campus, which is more than 60 years old.
Earlier this month, the exorbitant hike in fees for various courses by IIM-A was highlighted by Maheshwer Peri, the founder of Careers360, in a series of tweets. The points raised by him were mentioned by Tewari in his question in the Lok Sabha.
Sharing fee receipts, Peri tweeted that the premier business school of the country has hiked its fees by 575 per cent in the past 15 years from Rs 4 lakh in 2007 to Rs 27 lakh at present. He alleged that IIM-A earned Rs 118 crore as interest and dividends in 2021, which was more than the entire fees collected.
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