OPTIMISATION OF RESOURCE : A MOVE
 TOWARDS AUTONOMY

The Imperative Need for Autonomy

4.1 Optimal utilisation of resources requires institutional autonomy in all functions. This will only be possible when IITs become self-relient or at the very least reduce their dependence on government support.

Financial self-sufficiency would not only provide IITs with the ability to take independent decisions but also reduce their response time to other innovative suggestions, be A fee structuring, faculty compensation, student intake, curriculum modification or collaboration with institutions of higher education and research outside the country. Additionally, it would provide the means for forging lucrative industry linkages.

Attainment of Financial Self-sufficiency in 10 Years: The Goal and the Manner

4.2 There is broad concurrence that education at the highest level of excellence must pay for itself. Despite this, Government subsidy presently amounts to around 75 percent of operating costs. The Group recommends that IITs should work towards reducing this dependence to less than 30 percent within the next three years and progressively works towards a target of complete self-sufficiency by the end of the decade. IITs should budget that atleast 35-50 percent of their resources should be raised through fees and the balance through income generated through industry interaction. The Group recommends the following:

a. Fee Restructuring:

There is clearly a need for the fee structure to be modified, Institutions of excellence, even at the school level are charging fees which bear little relationship to those being charged for higher technical education. It is important that those who benefit from it are cognisance of its cost. The Group finds little justification in IIT fees being a fraction of the amount being charged by private institutions as "capitation".

While the issue of restructuring fees is being actively debated and proposals for increase are being processed, the Group recommends that:

- from the academic year 1997-98 onwards, 35 to 50 percent of the operating costs should be raised through fees. The extent to which this will be possible will be a function of the "brand equity" which each IIT can acquire.

- to mitigate the burden which the fee increase would impose on the meritorious underprivileged (who constitute around 35 percent of the student body); Government should ensure that scholarships are proved to them.

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- the balance who would be in a position to fully bear the enhanced cost. However, should assistance be required, it should be incumbent on the IITs to work out a merit-cum-means scheme by which eligible students would be in a position to access bank loans. *2

Consistent with its emphasis on autonomy, the Group recommends that the foregoing be treated as guidelines. In due course, each IIT should evolve its own fee structure taking into account Ks institutional strengths and the recognition which society accords to it. In effect,this would generate a healthy competition between IITs to attain ever-higher standards of excellence.

b. Enrolment of Foreign Students:

There is a demand from several countries, especially those in South-East Asia, for placement of students in IITs. Similar interest has been expressed by NRIs in all parts of the world. The Group recommends that the quota of 10 percent of the seats earmarked for foreign students should be progressively increased subject to the candidates meeting the requisite academic criteria. The interpretation of the term 'foreign student' should not be discretionary. Any student, whether of Indian origin or otherwise, should be deemed to be eligible provided he/she has not gone through the Indian academic system within the country. The selection of these students should be entrusted to the IITs.

The Group also recommends that the present fee of US $ 4,000 per year should be raised to fall in line with that prevailing in other countries which have institutions of similar excellence. A fee of around US $ 10,000 would seem reasonable to begin with.

c. Increased Student Intake:

Optimisation of both faculty and facilities is critical to success. The Group considers that a 60-40 ratio of expenditure on teaching and supporting staff existing presently, is indicative of sub-optimal utilisation of both components. The Group reviewed the staff:student ratios obtaining in some of the best US institutions and concluded that for a doubling of the intake of students, the increase in the expenditure on teaching staff salaries and supporting infrastructure would possibly be no more than 35%. Thus, doubling the intake would reduce the annual subsidy by atleast a third of the present amount. The Group recommends that the doubled intake should be achieved within the next two years, that is from 1997-98 scholastic year.

The Group further recommends that while no time should be lost in working out the modalities for the enhanced student intake, the special character of the IITs as model for engineering research and as a source for filling faculty positions in other engineering institutions should be preserved. For this, the present UG:PG ratio be maintained. Stipends for PG students should, however, be limited to 35 percent of the student body.

2 Such a scheme is already in place at IIM, Ahmedabad.

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