As per the new fee structure, each student taking admission for 2009-11 will have to spend Rs 9 lakh for two years at the institute.

They will have to pay Rs 4 lakh the first year and Rs 5 lakh for the second year for the Post-Grauate Diploma in Business Management and Post-Graduate Diploma in Computer aided Management (PGDM & PGDCM) programme. The batch of 2008-10, however, will pay Rs 7 lakh.

The decision was taken after a Board of Governors meeting at institute on Friday. “We are going by the fees review committee, but our institute has taken a final call on the hike,” said Dinesh Verma, Chief Administrative Officer of the IIM-C.

The cost for each student for one year is about Rs 4 lakh and it can rise subsequently, so the institute has decided to have such a fee structure, Verma said.

Last year, when IIMs in Ahmedabad and Bangalore had increased their fees to Rs 11 lakh and Rs 9.5 lakh, IIM-C had decided to show some restraint.

The Chairman of the Board of Governors, Ajit Balakrishan, pointed out that a fee hike is not a make and break situation for the institute.

Last year, the intake in the flagship programme was 304 students. This year, owing to the enhanced intake to accommodate 27 per cent OBC quota, the number of students to be admitted will be over 400.

The institute has also increased the annual corpus for scholarship for poor students from Rs 75 lakh to about Rs 1.5 crore.

According to the authorities, this will help extend the scholarship to more students.

Students whose family income is less than Rs 4 lakh per annum, will be eligible for the scholarship.