Govt panel suggests cap on fee for MBA, engineering courses in private institutes

If the recommendations are accepted, all private institutions taking more than the prescribed fee will have to fall in line.

Written by Ritika Chopra | New Delhi | Updated: November 19, 2015 9:46 am
tuition, mba tuition fees, mba fees, engineering courses, engineering courses fee, fee cap, mba fee cap, private institute course fee, india news The upper limit for the four-year engineering degree (BE or B.Tech) has been fixed in the range of Rs 1.44 lakh to 1.58 lakh every year.

Paving the way for fee regulation at the national level, a government-appointed committee, headed by former Supreme Court judge BN Srikrishna, has recommended a ceiling on the tuition fee charged by all private institutions for technical courses such as MBA and engineering.

Watch Video: Govt Panel Suggests Cap On Fee In Pvt Institutes(app users click here)

The ten-member panel has pegged the maximum (tuition and development) fee for a two-year MBA course in the range of Rs 1.57 lakh to Rs 1.71 lakh per annum, depending on the location of the private institution. The upper limit for the four-year engineering degree (BE or B.Tech) has been fixed in the range of Rs 1.44 lakh to 1.58 lakh every year. It has also suggested the maximum fee for technical courses such as B.Arch, B.Pharma, MCA and M.Tech, among others (see box).


The Justice Srikrishna committee was set up by the All India Council for Technical Education (AICTE) to honour the Supreme Court’s direction in the TMA Pai Foundation case. The apex court had ruled that to prevent commercialisation of technical education, the fee charged by private institutes should be decided by the state governments until a national-level fee fixation committee gives its recommendations.

AICTE Chairman Anil Sahasrabudhe confirmed that the regulatory body has received the report of the committee headed by BN Srikrishna. “We have submitted the whole report to the HRD Ministry and it is under consideration. They may consult experts and stakeholders to get their views on the suggestions,” he told The Indian Express.

If the recommendations are accepted, all private institutions taking more than the prescribed fee limits will have to fall in line. The report makes an exception for institutions of excellence by allowing autonomous and accredited ones to charge another 10 per cent and 20 per cent additional tuition fee from the students, respectively.

AICTE officials are tight-lipped about what will happen to top institutes whose fee structure exceeds the maximum limit even after factoring in the exception made for excellence. The Xavier Labour Relations Institute (XLRI) in Jamshedpur, for instance, takes Rs 9 lakh per annum for its post graduate diploma in management, which is equivalent to a two-year MBA. The TA Pai Management Institute in Manipal or TAPMI and SP Jain Institute of Management and Research, Mumbai, charge Rs 7 lakh and Rs 4.45 lakh every year, respectively, for the same.

Here are some of the highlights of the report:

# Private institutes and colleges can charge fee under four heads – tuition, development, examination and others. Tuition fee covers expenses on human resources (faculty and non-teaching staff) and learning resources such as library books and operational costs (electricity, water, maintenance etc). Development fee is meant for future development of the institute and cannot exceed 15 per cent of tuition fee. The maximum fee recommended by Srikrishna Committee (see box) covers tuition and development heads only.

# Examination fee can be taken by institutes that are affiliated to universities. The total amount charged under the ‘Others’ head, which covers contingency fund, placement, medical, counsellor and industry participation, shall not be more than Rs 1,000 or 1 per cent of the tuition fee, whichever is higher.

# Exceptions may be created in cases of excellence. Private institutions and colleges which have accreditation for at least two-thirds of their courses can charge an additional 20 per cent of the prescribed tuition fee. Autonomous institutes and colleges can charge 10 per cent additional tuition fee.

# Institutes can take higher tuition fee from those enrolled under the foreign student category, but it should be limited to a maximum of three times the prescribed limit. It has to stick to the ceiling in case of all other students.

# HRD and AICTE should set up appropriate mechanism to ensure strict adherence to fee guidelines

# The fee will be increased by just 5 per cent every year till it is reviewed. So if a student, say, pays Rs 1,000 in year 1, he or she will pay Rs 1,050 in year 2, Rs 1,102 in year 3 and 1,158 in year 4

# Government should facilitate scholarships and financial aid to offset the burden of fee on reserved category and economically weak students.

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  1. Antony Pandian
    Jun 13, 2017 at 10:12 am
    how much a b-school can increase thier fees from fees mentioned in fees structure?..... is there any law to take action against it.
    1. T
      Nov 19, 2015 at 2:46 pm
      This move is going to kill the MBA Education in the country. We want to compete with the best B-Schools in the world and yet ensure that they cannot charge market prices to attract the best faculty in the world. All these insutions will be forced to shut down and then let the Government babus teach our budding students management. The IIM's charge Rs. 15 Lacks plus and fantastic insutes like SP Jain will be forced to charge less than Rs. 2 lacs. Is this a joke in our country, that public insutions charge 5 - 8 times more than private insutions. The last time I checked, public insutions were supposed to do a service to our country. If it ain't broke don't fix it. But our Government rather than focussing on developing Centres of Excellence want to kill them. Really shocking move.
      1. D
        Dr. Ripu
        Nov 19, 2015 at 8:56 am
        Reformation also required for service provider and for the welfare of service executer
        1. S
          shrijay D
          Nov 20, 2015 at 3:46 pm
          His Lordship who was asked to head this panel should have looked into the fee structure of IIMs and then make recommendations based on the ground realities.Bangalore IIM got 105 acres of prime land from State Government in 70s and for last 30 years received resources from various Government agencies to develop infrastructure and how they are allowed to charge high fees? Will any one question this as they are not in the ambit of AICTE and why IIM -B alone all IIMs including new ones which are operating in some building as their campus is not ready are allowed to collect 9 to 10 lakhs .Is it justified? These details should have been presented to Honourable Chairman and seek justice as this will only create all kinds of confusion and management discipline will suffer. It is precisely for this purpose ISB does not seek recognition from any regulatory agency and still sought by industry and students. Hope these issues are addressed carefully and appropriate policies are framed. Let us not give room for litigation and disturb higher education space which is in a bad shape. Shrijay Urs
          1. D
            Nov 19, 2015 at 7:24 am
            Very good move. Education should be gained by merit and apudes not by money. We also should have Free education in these technical degrees for non-affordable people, should be set by governments:States and Central .
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