Ahmedabad, March 18: The Indian Institute of Management, Ahmedabad, is expected to raise the annual fee for its two-year MBA course from the next session. The decision is likely to be announced on April 2 after a meeting of the B-school’s board of governors.

The institute has already hiked the fee for its one-year postgraduate programme in management for executives (PGPX) from Rs 8 lakh to Rs 10 lakh. It also plans to increase the seats for the course from 70 to 120, thus earning an additional Rs 1 crore every year.

The annual fee for the two-year MBA course, also called the postgraduate programme (PGP), hasn’t been revised for many years.

The three older IIMs ? Ahmedabad, Bangalore and Calcutta ? have been watching their corpuses dwindle ever since they stopped accepting government grants following the spat with Murli Manohar Joshi two years ago. Joshi, then Union human resource development minister, had told the B-schools to slash their fees.

IIM Ahmedabad director Bakul Dholakia has defended a fee hike, mentioning that a student pays Rs 1.58 lakh though the institute spends Rs 2 lakh on him.