Tuesday, September 22, 2009

Students to pay more for B-schools using CAT score

The Indian Institutes of Management (IIMs) are laughing all the way to the bank. After hiking tuition fee for two years in a row, the premier management institutes have escalated fees for hundreds of other B-schools that use CAT (Common Admission Test) scores for admitting students. Officials of these other institutes feel the additional bill, charged to close to 150 institutes that admit students on the basis of the CAT, will eventually be passed on to applicants.

Close to 150 B-schools have signed an MoU with the IIMs to use CAT scores to admit students this year and, so for IIMs, B-school admissions are big business. Registration charges have been hiked from Rs. 75,000 to Rs. 200,000 for every B-schools that wishes to take its students on the basis of CAT scores. This translates to an earning of Rs. 3 crore (Rs. 30 million) for the IIMs but, over and above this, IIMs will also pocket Rs. 200 for letting out individual scorecards (up from Rs. 150 charged earlier).

CAT’s popularity has gone up after the HRD ministry listed it as one of the five entrance tests to determine B-school admissions (the others are XAT, ATMA, MAT and state CETs); most top-ranked B-schools now have CAT as the base test for admitting students. Departments of several universities, like the Osmania University, the University of Lucknow, the Punjab Agricultural University, the Banaras Hindu University, the Rajasthan Agricultural University and the University of Hyderabad, accept CAT scores. Some non-business management schools, like the University of Petroleum and Energy Studies, National Power Training Institute and National Insurance Academy, also swear by the CAT. So CAT has been IIMs’ golden goose. An RTI response revealed that the IIMs raked in Rs 28.36 crore (Rs. 283.6 million) in 2007-08, up from Rs. 24.16 crore the previous year, from CAT.

Source: The Times of India

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