The Hindu Business Line : Wage bill burns a hole in IIM-A’s pocket

The institute is also expecting to meet 10-15 per cent of its costs through the Payment Gateway, by means of selling its course materials and research papers.

Our Bureau

Ahmedabad, June 27 The Indian Institute of Management-Ahmedabad has incurred an annual deficit for 2008-09 due to increased expenditure and pressure from the Sixth Pay Commission, said Prof Samir Barua, Director, at the end of a board meeting.

“The Sixth Pay Commission has been a burden on us and we have paid 40 per cent of arrears in 2008-09. In 2009-10, the rest 60 per cent has to be paid (as compensation to teaching and non-teaching staff) and we will feel that pressure this year. In 2010-11, we might be able to get back to normal,” he said.

The institution has recognised several alternate revenue streams and will tap the highly resourceful alumni network for raising funds and teaching courses at the institute.

Alumni support

Mr Hasit Joshipura of Glaxosmithkline has joined the board of governors at the IIM-A and will teach three courses this year, according to Prof Barua. Around 12 to 15 alumni members from the industry are expected to teach courses at the institute in subjects as diverse as the WTO and managing the downturn, for example. “We have also asked ICICI to take up some academic courses here. Let us see how things work out,” he added.

The idea is to get practitioners from the industry to teach the students and bring in more practical knowledge as only case studies are not sufficient, he added. The institute might be able to offer seven new courses this year due to alumni assistance. But this will not help in meeting the alumni crunch, he said.

A hall at the Centre for Innovation, Incubation and Entrepreneurship has been named after late Sunil Mehta, Vice-President, Nasscom, and a donation of Rs 75 lakh has been received in his name.

The institute is also expecting to meet 10-15 per cent of its costs through the Payment Gateway, by means of selling its course materials and research papers. “The idea is to copy the Harvard Business School that manages to recover 30 per cent of its costs through selling academic papers and their journal. To begin with, we can aim for 10 to 15 per cent,” he said.

Related Stories:
Central Govt staff get pay hike as I-Day gift

More Stories on : Education | Management

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page