Mumbai: Piqued over Union Human Resource Development Ministry's decision to slash the fees for Indian Institutes of Management (IIMs), ace corporates today (Feb 25, 2004) said the move would not make IIMs more accessible to poor while observing that the immediate priority was to enhance the number of seats and setting up of new such institutions.

"The existing loan schemes and scholarships need to be highlighted and their visibility strengthened to make IIMs more accessible to the poor," IIM Ahmedabad Chairman and Infosys Chief N R Narayan Murthy told reporters.

The decision to cut fees would make the IIMs weaker and it is absolutely a lose-lose proposition, he said.

Murthy said the country needed about more 15,000-20,000 management seats and even if Government gives subsidy it would have to shell out Rs 20 crore which would be very high if the number of seats have to be increased.

This is not the priority for the Government to spend on students who would be earning much more, he said, adding that the average salary for IIM Ahmedabad pass-out was about Rs 8.25 lakh and the loan on fees can be repaid by the student easily in 2-3 years time.

HLL Chairman M S Banga said about 18 per cent of the students in IIM-A had parental income of below Rs 1.5 lakh, 60 per cent below Rs 5 lakh and about 22 per cent above Rs 5 lakh.