Bill limiting IIMs' autonomy tabled in Lok Sabha
What's the story
The central government on Friday introduced the IIM (Amendment) Bill, 2023, in Lok Sabha, a move that could dilute the autonomy of the prestigious Indian Institutes of Management (IIMs). Reportedly, it seeks to give power to India's president to nominate the chairperson of the board of governors. The president would also be allowed to appoint or remove the directors and audit the IIMs' functioning.
Details
Bill amends 2017 IIM Act
The tabled bill will amend the 2017 IIM Act, which came into force in 2018, that provided a higher degree of autonomy to IIMs, with a limited role of the Centre. The board of governors of each IIM, comprising 19 members, could appoint the chairperson. However, the amendment is a reversal of the philosophy of the original act, an IIM director told The Print.
More details
President will be appointed as 'Visitor'
In the amended bill, the president will be appointed as the "Visitor," who can also select the director of IIMs. Under the 2017 Act, a search-cum-selection committee headed by the chairperson recommends the director's name. Per the 2023 bill, the committee will still do its job, but the Visitor has the final say. The president will also have their nominee in the search-cum-selection panel.
More information
Concept of Visitor was introduced in 2015
The new bill also gives power to the Visitor to take appropriate action after reviewing the IIMs' work. It has also done away with Section 17 of the IIM Act, which gave the board power to inquire about the functioning of an IIM. The concept of "Visitor" was first introduced in the original act's draft in 2015 but wasn't included in the final bill.
Further information
IIM, Education Ministry indulged in tussle
Hindustan Times reported that the amendment comes at a time when the IIMs and the education ministry have been face-to-face on many issues. In 2020, the government expressed worries over the IIM's one-year executive MBA degree, saying it was not complying with the University Grants Commission (UGC) guidelines. In 2022, IIM Rohtak appointed its director for the second time amid the ministry's opposition.