The Union human resources development ministry on Thursday decided to drastically reduce fees for the post-graduate programmes in the Indian Institutes of Management (IIMs) to Rs 30,000 a year from around Rs 150,000 now. The revised fees will take effect from the 2004-05 academic session.

The decision was taken after considering a recent Supreme Court ruling and a review of the UR Rao committee's recommendations, the ministry said in its order.

Observing that the fees charged by the IIMs at Ahmedabad, Bangalore, Kolkata, Lucknow, Indore and Kozhikode were exorbitant at Rs 150,000 a year, the ministry pointed out these institutions were fully funded by the central government and their financial requirements were met through the Union Budget.

"After careful consideration of all aspects, it has been decided that the fees for the post-graduate programmes in the IIMs should be fixed at Rs 30,000 per annum," it said.

No other charges or fees should be levied from students, except mess charges, the release said. The ministry also sought a compliance report from the IIMs.

Reacting to the ministry's decision, IIM Ahmedabad students said the quality of education would suffer.

Infrastructure facilities, exchange programmes and other facilities would also be affected, they added. IIM Ahmedabad director Bakul Dholakia did not comment because he had not yet received the official communication on the issue.

Officials in the human resources development ministry, however, said the ministry would seek additional funds for the IIMs in the supplementary demand for grants during the regular Budget for 2004-05.

"The present allocation should be sufficient for the next few months and if any supplementary demands are made, the ministry will definitely meet them," an official said.

The allocation for IIMs, in fact, saw a sharp 25 per cent drop in government support from Rs 59.73 crore (Rs 597.3 million) in the revised estimates for the current fiscal to Rs 45 crore (Rs 450 million) for 2004-05. The ministry had provided Rs 74.73 crore (Rs 747.3 million) in the budget estimate for 2003-04.