NEW DELHI, MARCH 2: The Government today okayed the three-fold fee hike by the Indian Institute of Management (Ahmedabad) after the institute chairman Vijaypat Singhania assured that the scholarship corpus will be increased from last year’s Rs 39.5 lakh to Rs 8.5 crore making over 60% of the students eligible for scholarships. This, Singhania said, would ensure that economically weaker students are not denied access once the fee is raised from Rs 4 lakh to Rs 11.5 lakh.

Two other measures were announced. The household income limit for students to avail of scholarships has been raised from Rs 2 lakh to 6 lakh. And while earlier students had to pay fees and then ask for scholarships — which would then be reimbursed — now they will only have to pay the net fee after deducting the scholarship amount.

After an hour-long meeting today between IIMA chairman Vijaypat Singhania and HRD Minister Arjun Singh, Singhania said, “The minister was concerned about the students from economically weaker sections after the fee hike. I convinced him that no poor students will be denied of an opportunity to study in IIM-A. He was satisfied.” When asked if the fee hike remains, he said, “Yes, it remains..there is no change.”

Earlier in the day, Arjun Singh had said, “I don’t want to disturb the autonomy...but, under these conditions, how will they provision for the students from economically weaker sections, is what I want to know.”

Singhania said, “I explained to the Minister that the hike has been done purely on the basis of the Sixth Pay Commission recommendations and their implications. I have never believed in profiteering in my entire corporate life and IIMs will not become temples of profiteering.” He said that “the cost per student per year is Rs 5.5 lakh, so it is not fair to say that we are profiteering.”

He added that he had asked SBI and ICICI Bank, and they have said that they will still give loans at “favourable conditions” to students who make it to the institute.