Facing flak over the recent hike in the fees, the Indian Institute of Management, Ahmedabad, has sought to justify the increase saying that education in the top B-school was 'financially affordable'.

"Based on the average compensation packages offered for placement within the country, the pay back period even at a fee level of Rs 5,50,000 would be just four months," the IIMA said.

The efforts of IIMA to defend its steep hike in the fee structure comes in the backdrop of a Parliamentary panel taking exception to the fee hike and suggested that the IIMs should wait for the report of the Bhargava committee, set up to review functioning of the Institutes.

However, to ensure that non-availability of funds did not come in the way of poor students seeking to pursue the two-year post graduate programme, the IIMA said it would become the first institute in the world to offer MBA programme at zero cost to poor students.

Under the unique arrangement, students who belong to families with annual income levels of upto Rs 100,000, could  complete the two-year post graduate programme beginning next month.

The fee would vary from Nil for a student from family with annual income of upto Rs 100,000 to Rs 5,50,000 for a student from a family having an income of Rs 600,000 and more.

"About 22 students from the batch starting June 2008 are expected to benefit from this unique arrangement," the IIM-A said.