Reactions to the IIM fee cut
10 Feb 2004
The Government's move forces the ordinary tax payers to subsidise the elite of this country, says Venky Panchapagesan, assisatant professor of finance, Olin School of Business, Washington Univrsity, and alumnus from 1968 batch, IIM Kolkata. It is a crude attempt by the government to force IIMs to give up administrative independence in exchange for financial dependence.
According to R. Gopalakrishnan, Director Tata Sons, meddling with the fee structure is akin to trying to impose price controls. Industries such as vanaspati, sugar and cement, where were ravaged by price control.
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The IIMs will survive because their foundations are too strong to be shaken by Joshi. The IIMs have a brand equity whereas Joshi has none, says Netranand Patnayak, a second year student
from Fore School of Management. He adds that fees are not an issue for prospective students, because lending institutes are more than willing to fund any one who gets a call from an IIM
According to a faculty member from IIM Ahmedabad, requesting anonymity, the kind of infrastructure provided to students will not be available any more. The Rs 1.5 lakh fee includes everything — study material, mess fees, and so forth. Now, there will be separate charges under all these head.
Gouri Prasad Saha, General Secretaryy, international management forum , at the Indian Institute of Foreign Trade says despite being from a lower middle class family, he doesn't object to the present fee structure because loans are easily available. I don't even mind paying a premium for a better brand. One should also look at the return on one's investment. What counts finally is whether you get good returns.
N R Narayana Murthy, Chairman Infosys Ltd., subsidy for these institutes would be at the cost of basic amenities for the poor, like primary health and education
Mahesh Bharadwaj, final year student, IIM Ahmedabad, feels the HRD ministry has addressed a non-issue. Students had found the fees perfectly affordable, given the facilities offered and the pay that IIM graduates draw on completing their courses.
Jamshed J Irani, former managing director of Tata Steel says that Professional educational institutions such as IITs and IIMs should be run by autonomous bodies and should see no political interference. If a vice-chancellor or dean of such an institution does something improper or indulges in corruption, punish him by all means, sack him, but otherwise keep out of the campus," .
