IIMs in India: Indian Institute of Managements divided over new law, here is why

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Updated: February 6, 2018 8:51:34 AM

IIMs in India: Indian Institute of Managements are divided over the draft rules under the new Act. It has been learnt that 20 prominent B-schools have differences and out them, six have expressed concern over relinquishing of government control.

iims in indiaIIMs in India: IIMs across India have got more autonomy in their functioning

IIMs in India: Indian Institute of Managements are divided over the draft rules under the new Act. It has been learnt that 20 prominent B-schools have differences and out them, six have expressed concern over relinquishing of government control. These six B-schools have cited that this move would have an impact over  the accountability of the leadership of the institute. In a Directors’ meeting called by IIM-Bangalore on January 22, heads of the six IIMs have expressed their viewpoints while giving inputs for drafting rules.

Under the new IIM Act, an institute Director, who will also act as Chief Executive Officer, will be selected by the Board of Governors (BoG) of the institute from a panel of names recommended by the search-cum-selection committee (ScSc) also constituted by the BoG. Earlier, the Director was appointed by the Board but with the prior approval of the Appointments Committee of the Cabinet (ACC) headed by the Prime Minister.

IIMs across India have got more autonomy in their functioning with restricted government’s role in their functioning and power to award degrees instead of diplomas to their graduates, according to a new law. President Ram Nath Kovind has given assent to the Indian Institutes of Management Bill, 2017. The new law — which was passed in the Lok Sabha in July, 2017 and by Rajya Sabha on December 19 — grants statutory powers to the IIMs in their running, including the appointment of directors and faculty members. The Indian Institute of Management Act, 2017, gives the IIMs powers to award degrees instead of postgraduate diplomas.

Under the new IIM Act, an institute Director, who will also act as Chief Executive Officer, will be selected by the Board of Governors (BoG) of the institute from a panel of names recommended by the search-cum-selection committee (ScSc) also constituted by the BoG. Earlier, the Director was appointed by the Board but with the prior approval of the Appointments Committee of the Cabinet (ACC) headed by the Prime Minister. At least half of the 13 new IIMs, set up in the last decade, are of the view that the ACC should continue to remain involved even under the new law to ensure accountability.

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