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This is an archive article published on April 3, 2004

IIMA puts its foot down, firmly, gently

On the eve of the crucial board meeting, the Indian Institute of Management Society, Ahmedabad, put its foot down—without taking a conf...

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On the eve of the crucial board meeting, the Indian Institute of Management Society, Ahmedabad, put its foot down—without taking a confrontationist stand. It resolved to increase the number of ‘‘need-based scholarships’’ for students whose parents earn less than Rs 1.5 lakh a year and empowered the board to take legal action, as a last resort, if talks with the HRD Ministry fail to resolve the issues of fees and autonomy.

At its meeting today, the society was also presented a faculty committee report on a proposal to hike annual fees by Rs 7,000 over the present Rs 1.5 lakh. This amounts to a 7.4 per cent increase; last year, the institute had gone for a 20 per cent hike.

The decision on the fee hike will be taken by the board tomorrow.

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Representatives of both state and the Central government were absent at the meeting, which was attended by 40 of the 155 members.

The language the society chose to speak today may have been diplomatic — the first resolution seeks to begin talks with the HRD ministry with a clean slate— but its view that fees ought not to be cut remains unchanged.

A source said there was no difference among society members that management education fees should be seen as an investment, one that pays good returns, and hence should be based on real expenses.

‘‘What we discussed today was what the rational fee should be. We also discussed how to address the point made by Union HRD Minister Murli Manohar Joshi in making management education more affordable,’’ he said.

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‘‘The fees are decided on expenditure for various faculty in charge and then divided according to its usage. There is also a core committee which then looks at the suggestion and then tries to average out the burden on the student. It is a rational, mathematical decision and students are never overcharged,’’ he said.

The NBS scheme would not be a loan but direct help for the student — right from money for suits to tickets for visiting home, said the source, who is on the faculty, a society member, and also on the governing board.

Explaining the NBS scheme, IIMA dean Indira Parikh said, ‘‘Every student with an annual family income below Rs 1.5 lakh will be asked to provide proof and apply for NBS between May 8 and June 1. Other students’ financial positions will also be checked and, if necessary, they’ll be asked to apply for NBS. We’ve done this before and helped students on time. This time we are strengthening the procedure.’’

Detailing how this would be done, Infosys mentor and governing board chairman N R Narayana Murthy said: ‘‘We are going to increase the Rs 25 lakh fund kept aside every year for this purpose. But the new amount will be decided by the board tomorrow. The society has empowered us to begin fresh talks with the Union Ministry of Human Resource Development and come to a logical conclusion for all parties. In case talks fail, the society has empowered us to take legal recourse in order to protect the autonomy and also determine the fees. We will try our best to talk positively to the ministry, but the fees for the new session is going to be decided tomorrow.’’

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Murthy said the legal recourse could have been taken at any time, but the society wants to do that as a last resort.

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