Lesser-known residential management institutes charge much more than the the Indian Institutes of Management -- in some cases almost double the IIM fees.
Two residential management institutes in Ahmedabad -- the ICFAIAN Business School and the Nirma Institute of Management Studies -- charge Rs 225,000 a year and Rs 125,000 a year as fees for students opting for a degree in management.
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While the education fee (excluding boarding and lodging) for a year in ICFAIAN is Rs 225,000, the tuition fee alone for NIMs per year is around Rs 84,000.
Comparatively, IIM-Ahmedabad charges Rs 100,000 as tuition fees, Rs 15,000 as library charges, Rs 12,500 as computer and Internet charges, Rs 12,000 on books and materials and Rs 17,000 as hostel fees per year, adding up to Rs 157,000 per annum.
Officials of these management schools said considering the infrastructure and facilities provided, the fee structure is very justified.
P Balabhaskaran, dean of ICFAIAN Business School, said voices are bound to be raised on the fee structure of private management schools after the human resources development ministry decision.
"But honestly, I feel this announcement by the ministry is an election gimmick and the order to reduce the fees will be revoked once the elections are over," he said.
The dean said almost all students who opt for education in ICFAIAN are from the middle or upper middle class and can afford the amount.
"In addition, there are several scholarships and there is also the option of loans. Even I have taken a loan for my higher education," Balabhaskaran said.
Balabhaskaran said the price structure of some private management schools will now be far higher than that of the IIMs.
"I really do not think the present fee structure can be reduced too much since we have set up an infrastructure and this has to be maintained."
ICFAIAN Business School admits 100 students a year and conducts a tri-semester course every year.
With the two-year course attracting a fee of Rs 450,000 for the full-time course, the yearly fees for a student turns out to be around Rs 225,000.
NIMS, affiliated to Nirma University, has a two-year full-time post-graduate management course spread over six semesters.
The trisemester fees (the fees for a year) at NIMS amounts to Rs 125,000 with Rs 84,000 being tuition fees alone. The two-year course costs Rs 250,000 lakh for a student.
"One needs to see the reality in the right perspective. Today, the cost to produce one quality management graduate is around Rs 200,000," said Anup Singh, director of NIMS.
"Most good management institutions charge around that figure," Singh said.
The NIMS director said what the government has attempted to state by reducing IIM fees is that while private institutions can charge higher fees, provided they justify it with facilities and infrastructure, the government institutions must charge lesser.
