"What is important is that there should be loans. Any student that can get into IIMs should be able to finance his education through a loan", Ahluwalia said on the sidelines of a conference to release the report of the High-Level committee on services sector.

Ahluwalia said he was told that the institutes have also introduced generous scholarships, adding, "It is not clear to me that the government should be subsidising that (IIM) kind of education".

The IIMs had decided to increase fees for their two-year post-graduate programmes.

IIM Ahmedabad increased the fee from Rs 5 lakh for both the years of the course to Rs 11.5 lakh, while IIM Bangalore had decided to increase the fee to Rs 9 lakh from Rs 5 lakh.

Human Resource Development Minister Arjun Singh had reportedly asked IIM Ahmedabad Governing Council Chairman Vijaypat Singhania to explain the ‘unwarranted tripling of the fees’.

IIM Kolkata had similarly decided to increase the fee to Rs 6 lakh for the entire course from Rs Rs 3.75 lakh at present and similarly IIM Kozhikode decided to increase the fee to Rs 6 lakh for the two-year programme from Rs 3.85 lakh.