In a move that has surprised the B-school fraternity, the Indian Institute of Management Ahmedabad (IIM-A) on Saturday announced a close to 200% fee hike for its flagship Post Graduate Program in Management (PGPM). The hikes are the steepest in the history of the institution. On its part, the institute also raised the bar for annual family income of the students eligible for financial aid from Rs 2 lakh to Rs 6 lakh.
The fees have been raised from the existing Rs 2 lakh per annum to Rs 5.5 lakh per annum for the first year students. The second year students will have to shell out Rs 50,000 more at Rs 6 lakh. The hikes will be effective from June 2008 and hence students admitted for the 2008-10 IIM intakes will have to pay a total of Rs.11.5 lacs for the two-year program.
Other IIMs have also increased their fees and the fee hikes would be applicable for the 2009-11 intake. IIM-B will be charging Rs.9 lacs for the 2-year program and IIM-C fees will be approx.6 lacs as per the reports available. Reports also suggest that most Tier 2 and Tier 3 B-schools including MDI Gurgaon, TAPMI, and S.P. Jain are like to increase their fees for the 2009-11 intake.
In attempt to ensure that the Institute doesn’t deprive deserving students from joining the PGPM program for want of money, the IIM-A board has decided to raise the annual family income bar from Rs 2 lakh to Rs 6 lakh to be eligible for financial support. “Graded need based financial aid will be available eligible students who qualify for financial support”. | 
