Arjun, IIMs face off today

He is also likely to suggest that the government will pay the amount required to fund the fee cuts and that the subsidy would be reduced gradually over the next five to 10 years.

Sources in IIMA said while the institute is not against the three-tier fee slab per se, many believe the income of those eligible for fee exemption should match that of the income tax waiver slab of the government.

As per the graded fee structure evolved by the HRD Ministry, the IIMs will have to provide free education to students from families with total income less than Rs 1.5 lakh per year.

An IIMA source said: 8216;8216;We agree that there should be fee cut on a need-based criteria and not across the board. But the limit for full fee exemption should be the same as the income limit for which the government gives tax exemption. Students who cannot meet the whole expenditure should pay a minimum and the rest can be taken care of by scholarships.8217;8217;

In its response, IIMA points out that the total fee of Rs 1.5 lakh per annum is split into Rs 85,000 tuition fee and Rs 65,000 for expenses over hostel accommodation, food, library, computer and study material. While Rs 85,000 can be waived, IIMA wants all students to pay Rs 65,000 for which it proposes to arrange for bank loans.

8216;8216;We had even funded the to and fro journey and clothes of needy students. Under an income slab system, this will not be possible. There should be some flexibility in the disposal of need-based scholarships,8217;8217; a source said.

While IIMA will hand over its answer, to the one-man Shunglu Committee report on the financial conditions of the IIMs, to the Minister, IIMB and IIMC have prepared their own counter-reports. 8216;8216;It is the most biased report ever submitted and since it is on the table, reference to it is unavoidable in the fee cut issue. So there should be a proper answer before a solution is accepted by all parties,8217;8217; a source said.