The country's best B-school, Indian Institute of Management, Ahmedabad (IIM-A) has generated a net surplus of Rs 6.83 crore for the 2010-11 fiscal year as a result of hike in the fee from the past three years.
IIM-A had increased the fee by nearly six-folds for their flagship Postgraduate Programme (PGP) in management from Rs 2 lakh to Rs 11.5 lakh in 2008. In 2010-11, the fee was hiked by 25% and for the 2012-14 batch the PGP programme was charged Rs 15.5 lakh. The fee income from the PGP in agri business management also rose by 52% in the 2010-11. The institute has driven the finance resource generation through fee hikes across the programmes they offer. Sources from the institute revealed that, both, the pre-unit realization and scale increased after the quota implementation and fee hike.
Other IIM's have also benefited from the fee hike process. IIM-Bangalore has recorded Rs 42.82 lakh increase in the total income in 2010-11 after they increased the fee for the Executive Education Programmes (EEPs) and the PGP, accounting to 88% increase in the total income. With increase in the number of EEPs, the income from the EEP has increased by 68% reported the sources from the institute. In addition, the increasing number of international programmes has also added to a significant increase in the revenue and per-programme rates.
At IIM-Calcutta, the total income has increased to Rs 104.69 crore from Rs 83.96 crore (25% increase).The institute’s corpus fund has gone up from Rs 16 crore to Rs 22.16 crore. The institute has also recorded a 10% revenue from the online education programmes this year, which is higher than the percentage recorded by the Stanford and Harvard business schools.
IIM-A, IIM-B and IIM-C are now looking forward to fund-raising from their alumni network as these institutes do not seek grants from the government to run their administration.
Source: Business Standard
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