The Directors of Indian Institutes of Management (IIMs) in Trichy, Raipur, Udaipur and Kashipur met HRD Minister Ramesh Pokhriyal on Tuesday to flag the delay in the release of additional funds for building their permanent campuses.
The second-generation IIMs in Ranchi, Rohtak, Raipur, Kashipur, Udaipur, and Trichy were set up by the UPA-II government in 2008. The Cabinet, at that time, had sanctioned Rs 333 crore for each institute to build their campuses. With the exception of IIM-Ranchi and IIM-Rohtak, all have received the approved funds.
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Last year, the institutes had sought more money on the ground that the construction work started almost five years after Cabinet approval. Hence, construction costs had also increased. While the six older IIMs in Ahmedabad, Bangalore, Kolkata, Lucknow, Kozhikode and Indore are financially independent, the remaining 14 are still mostly dependent on the government.
However, a revised cost estimate committee of the ministry, set up recently to examine the demand, advised against releasing additional funds. The government is yet to take a final call on the suggestion.
On June 13, at a meeting of all IIMs, the second-generation IIMs flagged their demand to Pokhriyal, the new HRD Minister. In the absence of any follow-up from the ministry, the directors of IIM-Trichy, IIM-Raipur, IIM-Udaipur, and IIM-Kashipur sought an appointment with him to flag the fund crunch again.
“The estimated costs approved by the Cabinet were based on 2008 prices. Most of us started our construction in 2014. So by mere inflation, what would cost Rs 100 in 2008 was now Rs 114 in 2014,” said an IIM director who did not wish to be identified.
“The government has already revised costs for second generation IITs by three times. Similarly, costs for IIDERs have also revised. It’s natural for IIMs to expect it too,” the director added.
If the ministry does not agree, the Board of Governors of the six IIMs may take up the issue separately with the government, The Indian Express has learned.