Joka: IIM Calcutta will raise the fee of its flagship postgraduate diploma in management (PGDM) course by a lakh to Rs 21 lakh from the 2018-20 academic batch.

The board of governors - the highest decision-making body - approved the proposal in it's meeting on Saturday, before the institute's 53rd convocation was held.

"The fee structure was reviewed and it was decided that it would be hiked.... This has been done because of inflationary changes," board chairman Shrikrishna Kulkarni said.

"In the past, we used to do this once in three years. But now, we are doing it annually. It will now be Rs 21lakh."

All IIMs follow this model and the fees are decided taking into account the rate of inflation, the requirements of the institute and the affordability of students, an institute official said. "For instance, IIM Ahmedabad has increased the fee to Rs 22 lakh."

In his convocation speech, Kulkarni said the institute now needed to make good use of the financial autonomy granted to B-schools, along with the passage of the IIM Act, 2017.

The act came into force on January 31, 2018.

It also means the institute has to raise money for its development, he said.

Asked about the probable model for raising funds, director Saibal Chattopadhyay said the alumni could help.

"We need to rethink on how to effectively communicate with and invigorate our alumni network about the changes/new initiatives being planned at IIM Calcutta and how to get their active participation in these and increase our endowment funds," Kulkarni said in his address.

An official said the institute was eyeing the institute of eminence tag to source more funds.

The tag will help the institute get Rs 1,000 crore over five years from the HRD ministry.

On Saturday, 433 students received their diplomas.

The IIM Act 2017 has empowered the institutes to confer degrees instead of postgraduate diplomas.

The degree would help students pursue higher education in management abroad, an institute official said.

But the IIM Calcutta, like 16 other IIMs, decided to award diplomas this year because the UGC permission is needed to award degrees.

Chairman Kulkarni said the faculty body decided it was "too early" to award degrees despite the act.

"There are so many technical hurdles, legal hurdles. Based on those inputs it was decided... When we do decide to go from diploma to degree, there should be no issue of legal impropriety."

Kulkarni said he hoped the director of the 20 IIMs would sit together to take a decision on the matter.