Indian Institute of Management, Ahmedabad (IIM-A) has decided to effect a sharp hike in fees (by more than 100%) for its post graduate programme from next year.

In the new scheme of things, the fees for post graduate programme has been increased to INR 5.50 lacs for the first year, INR 6 lacs for the second year of the two year post-graduate programme for the batch joining in June 2008. Until last year, the fees of the IIM-A was INR 2.50 lakh. The top business school has decided to raise the fees by more than 100 per cent.

"The Board of IIM-A reviewed the cost structure of the two-year PGP programme. After an extensive discussion, the Board unanimously decided to increase the fees," Chairman of IIM-A Board of Governors and Society, Mr. Vijaypat Singhania said.

The decision was taken in a Board of Governors' meeting in Ahmedabad on Saturday. The board reiterated the commitment that no deserving student would be deprived of an opportunity to study in IIM-A on account of lack of financial resources, Singhania said.

"The board has therefore decided to triple the annual family income limit from INR 2 lacs to INR 6 lacs for a student to be eligible for financial support," he said. "Graded need-based financial aid will be available to eligible students who qualify for financial support," he added.