New Delhi, Aug 27 - The Union Cabinet Thursday approved the setting up of seven new Indian Institutes of Management (IIMs) that will get operational in two phases.

Four IIMs would be set up in Trichy, Ranchi, Raipur and Rohtak in the first phase and the classes would start from the 2010-11 academic year. The other three in Jammu and Kashmir, Uttarakhand and Rajasthan will get operational from 2011-12. The exact locations in these states are yet to be decided.

Briefing reporters here on the Cabinet decision, Information and Broadcasting Minister Ambika Soni said an allocation of Rs.451 crore as non-recurring expenditure and Rs.118 crore as recurring expenditure has been sanctioned for the first phase.