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Top B-Schools To Join IIMs' Fee-Hike Trek, Rise In Salaries May Force Them To Raise Fees

By siddharth22, Section Education
Posted on Fri Mar 28, 2008 at 12:31:23 AM EST

Got your sights set on management education? Here's a news flash: It's just got that much more expensive! Now that the IIM fee-hike jig is done, other major B-schools like MDI, Gurgaon; TAPMI, Manipal; SP Jain and Goa Institute of Management are going the same way as well. End result: Students pay more, wherever they go.

TA Pai Management Institute, Manipal, for instance, has decided to effect a 50% increase in fees for its two-year management course from Rs 4 lakh to Rs 6 lakh (all-inclusive, without food) from the 2008-09 session. "This decision has been taken partly to recover some of the costs incurred by us to set up the new campus. This may even go up to Rs 6.5 lakh from next year," TAPMI director D Nagabrahmam said.

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Management Development Institute, Gurgaon, too is raising its fees: from approximately Rs 6 lakh to around Rs 7.92 lakh for its two-year flagship programme. In fact, MDI director SK Basu said that the institute was planning to increase fees across courses so as to not put the burden on just a particular set of students.

"We have even increased the intake from 300 to 360, with AICTE approval. As a self-sufficient institute, which gets no government grants, this has been done to offset costs, including that of our planned expansion," said Mr Basu.

The institutes, in fact, are citing a number of reasons for the fee hikes. Some attribute it to campus expansion while others say it is to cover the cost per student. Management sources also claim that though private B-schools were expecting an increase, many have been hit by the magnitude of the 40% hike in faculty salaries, set to happen at the IIMs following the Sixth Pay Commission recommendations.

This means that private institutes, which normally pay a more lucrative salary to attract some of the best faculty, will find their task cut out to wean them away from the IIMs now. These institutes may have to offer higher faculty salaries, which may result in a further fee hike, said sources.

SP Jain Institute of Management and Research (SPJIMR) registrar Varsha Parab, in fact, said that the institute has gone in for a higher fee hike than usual. "We will now charge Rs 2.5 lakh a year from the 2008 session, instead of the existing Rs 2 lakh a year. Usually, we implement a fee hike of between 10% and 15%. But this year, we have gone in for a 25% hike, with the expectation of the Sixth Pay Commission's likely recommendations in mind."

Goa Institute of Management director CM Ramesh also said the institute is planning to raise the fees for its two-year programme to Rs 3.5 lakh from the 2009 session, up from the existing Rs 2.8 lakh (all-inclusive, except food). "We are a non-profit organisation, but we have to raise the fees to cover costs, especially in the light of our proposed campus expansion," said Mr Ramesh.

Source:http://economictimes.indiatimes.com/,28-03-08

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