A committee of Indian Institute of Technology directors has recommended a 200 percent hike in students' annual fees as to give greater financial autonomy to the Institute.
Directors from IIT -Madras, Bombay and Kanpur among others, came up with a roadmap to financial autonomy of the IITs in consultation with ministers from finance and HRD ministry.
The panel has suggested the IITs raise annual student fees to Rs 3 lakh from the present fee of Rs 90,000. Then the institutions would be able to cover costs of salaries and maintenance. The panel also suggested creation of a Rs 2,000 crore Non Banking Financial Company (NBFC), which will provide interest free loans for projects and research infrastructure.
"The proposals are being considered and could be among the budgetary announcements this year," said an official. New financial methods are necessary in order to fund research and infrastructural developments as per the committee.
"The idea is to rationalise fees in such a way that at least the salary and maintenance costs of an IIT are taken care of, else this becomes a very difficult situation. Almost 50 percent plan grants to an IIT are consumed by scholarships," said an IIT director.
At present, there are 18 functioning IITs, while five are yet to begin operations. Of the 2,000 crore fund for the NBFC entity, half is expected to come via the government and the remaining through CSR initiatives.
The main objective of the NBFC is to get interest-free loans for a period of five to 10 years. The estimated maintenance bill and salary bill of the IITs is about Rs 2,500 crore, the publication added.