During the Monsoon Session of 2023, the IIM Bill managed to secure passage despite facing considerable criticism. This bill introduces key modifications to the existing IIM Act, which has been in effect for six years. Notably, it designates the President as the Visitor of the IIMs, effectively curtailing their autonomy. Another significant change is the elevation of the National Institute of Industrial Engineering (NITIE), Mumbai to the prestigious status of IIM, Mumbai.
The passage of the bill involved a voice vote amidst opposition slogans. Once it is ratified in the Rajya Sabha, it will amend the 2017 IIM Act, which previously granted the IIMs more freedom in their academic and administrative affairs. Prior to this amendment, the education ministry solely held the authority to appoint directors, chairpersons, and board members for the IIMs. However, with the new amendment, the President of India will assume the role of the Visitor for the IIMs, aligning their governance structure with that of Indian Institutes of Technology (IITs) and other central universities.
Furthermore, NITIE, Mumbai’s status has been elevated to that of an IIM, becoming the 21st addition to the esteemed list of IIMs and the second one in Maharashtra, alongside IIM Nagpur. The Bill also brings changes to the appointment process for directors. In the past, the board of governors possessed the authority to appoint directors based on the recommendations of a search-cum-selection committee. Under the revised Act, the board of governors will now require the prior approval of the Visitor before finalizing the appointment of a director. Additionally, the Visitor’s powers have been bolstered, including the ability to terminate the services of a director.
The amendment Bill also confers increased power to the central government, allowing it to dissolve or suspend the board of governors. The government is authorized to prescribe the conditions and procedures for such actions and may establish an interim board if deemed necessary. Consequently, the government’s influence over the functioning of the IIMs is further extended.
However, the dilution of autonomy has sparked controversy between the IIMs and the government. In the past, some IIMs have resisted complying with the directives of the Ministry of Human Resource and Development (MHRD) in an effort to maintain their autonomy. These disagreements underscore the ongoing clash over the extent of independence the IIMs should retain.
Despite the passage of this contentious bill, IIMs continue to be vital institutions in the educational landscape. Stay informed with Careers360 for the latest updates on colleges, universities, admissions, courses, exams, and more.