The Indian Institute of Management, Bangalore (IIM-B) has hiked its post-graduate programme (PGP) by 60 per cent, from Rs. 2.5 lakh to Rs. 4 lakh, effective academic year 2008-09.

The decision was taken to support the costs of infrastructure. Students who will join IIM-B from the academic year, 2008-09 will have to shell out Rs. 4 lakh for the first year of PGP and Rs. 5 lakh when they go into the second year.

For the next academic year 2009-10, it will be a flat Rs. 5 lakh per annum making the two-year PGP cost Rs. 10 lakh.

IIMs attribute the hike to the increased costs of running the institute and the deficit that they incur on each student.

According to IIM-B, the institute incurs an expenditure of Rs. 5 lakh per student each year whereas the fee charged was just 50% with balance being subsidised.