HRD Ministry Directs IITs to Develop Revenue Model

The Ministry of Human Resource and Development has asked all the Indian Institutes of Technology to come up with a revenue model for carrying out their operations. Earlier, directors of IITs approached HRD Ministry and expressed their concern over the fact that the 122 percent fee hike introduced by the HRD Ministry in 2016 did not benefit the institutes. They claimed that IITs did not receive satisfactory revenue as the ministry announced many concessions. The directors also raised the issue during the IIT Council meet that took place last week in Mumbai.

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Considering the plea made by IIT directors, HRD Ministry has directed all the premier technical institutes to frame a revenue model. HRD Ministry is of the opinion that there is a need to come up with revenue model before carrying out further discussions on concessions and fee hike.

The directors of IITs also complained that they were not able to make any revenue due to the multiple grants from the HRD Ministry. HRD Ministry believes that the revenue model would help the institutes to increase the component of self-sustenance.

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The ministry also directed the IITs to submit data of the revenue collected, fees charged, fees concessions, expenditure and loans. The institutes need to submit a draft of revenue model that must include various suggestions on the kind of loan system, interest component, recovery options and the authority that pays interest.

The directors of IITs also said that HRD Ministry and Ministry of Social Justice and Empowerment should replace the fee waiver with reimbursement.