Indian Institute of Management - Calcutta (IIM-C) has decided to raise the annual fees by Rs 1 lakh per student to Rs 3 lakh for students taking admission this year.

The fees would be hiked further by another lakh to Rs 4 lakh a year for students who take admission to IIM-C from 2009.

The decision to hike the fees was finalised at the board of governors’ meeting and there would not be any impact for existing students, IIM-C director Shekhar Chaudhuri said.

The institute had increased fees by Rs 25,000 last year.

“Costs have risen and are expected to increase even further once the Sixth Pay Commission recommendations are implemented,” Chaudhuri said when asked about the reason behind the hike in fees.

The decision was also taken keeping in view the fee increase at other IIMs like IIM-Ahmedabad, IIM-Bangalore and other institutes.

IIM-Bangalore has increased annual fees for first-year students to Rs 3.5 lakh, an IIM-C official said.

IIM-C currently incurs a deficit of Rs 1.5 lakh on every student each year, the official said.

“The fee increase will help us meet growing expenditures, while providing students better opportunities and improved facilities,” the IIM-C official spokesperson said.

scholarship scheme

IIM-C has also effected a change in the need-based scholarship scheme. So far, students from households with annual incomes of upto Rs 2 lakh were eligible for scholarships offered by the institute.

From this year, the eligibility margin has been increased to Rs 4 lakh.

“There are at least 25-30 students who benefit from fee waiver every year. The new scheme will encourage more students from financially-weak backgrounds to seek admission,” Shekhar Chaudhuri said.