During October of 2015, there were recommendations of a fee hike of IITs. One of the motivations stated by the committee comprising of directors of IITs behind this fee hike is the gap between what an IIT spends per student and what it charges.
According to sources, a committee set up to look into finances of IITs had proposed a hike in average annual fees from 90 thousand to 3 lacs to the HRD ministry, the highest decision making body on IITs. The committee also suggested raising 2000 Crore INR as an NBFC (Non-Banking Financial Company).
NBFCs are financial institutions that provide banking services without meeting legal definition of a bank. According to the final report submitted by the panel, One half of the proposed sum could be raised from the government, the other half i.e. 1000 Crores INR could be privately raised. This will reduce dependency of the IITs on government funds which will help IITs to function more autonomously. Raising private funds is a good option since many IIT alumnus will be willing to give back to their colleges. Forming an NBFC will require approval from the Union Cabinet, which makes it a time taking process.
Currently, around 80 per cent of the operational expenses of IITS are funded by the government. Director of an IIT reportedly said, ‘The agenda mentions a facility to provide interest-free loans which will be worked out to facilitate the fee increase”.
Although the report has been submitted, a final nod from HRD ministry is still awaited.
The council was headed by Padma Vibhushan Anil Kakodkar, senior Nuclear Scientist and former Chairman of Board of Governors of IIT-Bombay. Anil had resigned in May, 2015 from the Chairmanship, over selection of IIT Ropar Director. ‘The process was too casual and I don’t want to be a party to it’ Anil said.