Cabinet clears 2804 Cr for construction of 7 new IIMs

NEW DELHI, SEPTEMBER 6: The Union Cabinet has approved Rs. 2804.09 to create the physical infrastructure of newly announced seven Indian Institutes of Management (IIMs). It has approved the amount for establishment and operationalization of permanent campus of seven new IIMs at Amritsar, Bodh Gaya, Nagpur, Sambalpur, Sirmaur, Vishakhapatnam and Jammu, and their recurring expenditure at a total cost of Rs 3775.42 crore.

These IIMs were established between 2015-17 and are presently functioning from transit campuses.

Each of the new IIMs will construct an area of 60384 Sqm, which will have complete infrastructural facilities for 600 students in each of the institutes. Recurring grants to these institute has also been approved Rs 5 Lakh per student per year for 5 years. Thereafter, the institutes are expected to meet their running cost/maintenance cost from the internal generation of funds.

The construction of the permanent campus of these institutes shall be completed by June 2021. With this, all the 20 IIMs will have their own permanent campuses.

The approval will promote the economic and industrial development of the country. Out of the sanctioned Rs 3775.42 crore, Rs 2999.96 crore will be spent as non-recurring and Rs 775.46 Crore as recurring expenditure.

The total cost is assessed as Rs. 3775.42 crore, out of which Rs. 2804.09 crore will be spent for construction of permanent campuses of these institutes.