IIMs Bill Approved : Get Autonomy


Finally after a long time of demand Indian institute of management have got “Complete autonomy”. Union cabinet on Tuesday cleared the bill in favour of Indian institute of management (IIM) and Grant complete autonomy to elite B-schools and allow them to award degree instead of diploma as they are doing now

After the cabinet meeting in New Delhi  cabinet said that the bill will allow not only the complete autonomy but will also featured with combined and adequate accountability. The IIM bill is under discussion from  several years, now this bill grant the premier management schools freedom in terms of administration, recruitment and daily functioning of institutions.

This bill is prepared with the aim of furthering excellence in these institutions,” Prime Minister Narendra Modi said in his post on Twitter. Human resource development minister Prakash Javadekar said this cabinet approval is a ‘historic decision’ for these institutions. As he is unable to attend the cabinet meeting because of a family function.

This  bill will ensure  chairperson and  director selected by the board members and now the IIM  is totally board-driven.” It reveals a message that neither the human resource development ministry nor the president of India will interfere any more in the selection of top executives of these B-schools. Currently the board make the recommendations and the government either accepts or rejects their proposals.

The bill is very controversial many saw it as a big concern that it may erode the autonomy of these institutions. This bill was first protested in June 2015 when it’s first draft was put forward for public.

J.J.irani chairperson of IIM Lucknow said at that time ,” if the bill is passed in current format this will be a revolt in IIM system.” Human Resource Development minister made several changes to draft and most of the disputed issues like selection of chairman for board and course fee, composition of IIM board will now be decided by the IIM with very little interference of ministry , a report said which is released in August last year.

Founder of IIMs thought that these institutions will get autonomy by the establishing society which is not true for all the time. As the former secretary to the government of India, department of higher education says, “If the IIMs are able to stand on their own feet, then they will be totally autonomous. All the IIMs such as Ahmedabad, Bangalore and Calcutta do not  need funds from government  because they are independent at  that extent and If they are able to maintain their economic independence it is fine.”

As of now union cabinet minister on Tuesday headed by prime minister Narendra Modi have approved the very controversial  Indian Institute of Management bill 2017 and now IIM will get importance of national institutes. The main features of this bill are

  1. IIMs by passing this bill will now be able to grant degree to their students. Currently, all IIMs are under separate autonomous bodies registered under the Societies Act., IIMs are not authorised to award degrees to their passed out students and therefore they have been awarding postgraduate diploma and fellow programme in management and all  these awards are  equivalent to MBAs and PhD, respectively, but this equivalence is not universally acceptable, especially the fellow programme in management is not treated as equivalent.
  2. According to this Bill government now provide complete autonomy to the IIMs in addition with combined and adequate accountability. IIMs is autonomous and will exercises their  independent control of  its daily routine work.
  3. From now onwards the institutes will be purely board-driven , and each IIM  will have a chairperson and director which will be selected by the Board.
  4. More experts of  management and IIM alumni will be part ofthe Board discussions and also participate in board meeting.
  5. Independent agencies will review the performance of IIM on regular basis. And the results will put forward to public. This review will help to take decision about the long term strategy and five- year plan for these institutions.
  6. The annual report of IIM will places be in front of Comptroller and Auditor General  in parliament for their audits.
  7. There is a forum of provision of Coordination  in which IIMs is as an advisory body. The forum will facilitate the sharing of experiences, ideas and concerns with a view to enhancing the performance of all institutes.
  8. According to this bill, this is the responsibility of each IIM will be vested in its board which is  headed by a chairperson who will be an eminent person from the field of education,  industry, science or technology
  9. Last and one of the important point of this bill is that each board should have a representative from  HRD ministry , one of the state government, four eminent persons, four alumni, one member of the IIM society, two faculty members and a director who will be ex-officer member. At least one member of the board should be either from the SCs or STs and three members should be women. The board will have the power to select the director.

The Indian Institutes of Management Bill, 2017, is different from the running premier business schools. Now All powers will be vested in 15 board of members at every IIM. Also, the bill does not have any provision of reservation in faculty jobs expect the recruitment policy. However, reservation policy  in admission for SC/ST and OBC will be as per existing norms of institutions . This move came after wrangling between the HRD ministry and the Prime Minister’s Office members  on the bill’s autonomy provisions.


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