Targeted subsidy: IIM to push for fee cut for needy

8216;8216;Fee reduction across the board means an additional Rs 18-crore subsidy burden on the exchequer, considering 250 students in each of the six IIMs,8217;8217; an official said. 8216;8216;This is over and above the subsidy that is already given for Rs 40 crore as the actual cost per student is Rs 3 lakh.8217;8217;

8216;8216;Our proposal was that once a student from a particular income group gets in through the Common Admission Test, we can admit him or her and the government can directly send his subsidy to the bank. IIM is ready to advertise this in its brochures. This way, the subsidy can be given to needy students instead of those who don8217;t need it,8217;8217; the official said. IIMA has already earmarked Rs 25 lakh as need-based subsidy from internal funds. 8216;8216;Our income slab cut-off for needy students may be lower than what Joshi has in mind so we can leave the fixing of the income slab to him.8217;8217;

IIM sources said this alternative solution will be circulated at the board meeting.