Cabinet authorizes IIM bill to be Independent- IIM can now give degrees!

Cabinet authorizes IIM bill to be Independent- IIM can now give degrees!

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The Cabinet authorizes IIM  to be self-sufficient, after years of demanding this autonomy finally, they allow Business schools to give degrees despite of diplomas, freedom in terms of administration, recruitment as well as daily functioning.

The Indian Institutes of Management (IIMs) have finally got what they have been demanding for years—greater autonomy. The Union cabinet on last Tuesday cleared the Indian Institute of Management (IIM) bill, 2017 that aims to grant “complete autonomy” to the elite B-schools and allow them to award degrees instead of diplomas, as is the case now. The bill will allow IIMs “complete autonomy… combined with adequate accountability”, the cabinet said in a statement after meeting in New Delhi.The IIM bill, under discussion for several years, will grant the premier management schools freedom in terms of administration, recruitment and daily functioning.

The IIM Bill, which was approved by the Cabinet, has been prepared with the aim of furthering excellence in these premier institutions,” Prime Minister Narendra Modi said in a post on the microblogging site Twitter. Human resource development minister Prakash Javadekar termed the cabinet approval a “historic decision”.“We trust excellence and quality,” Javadekar, who could not attend the cabinet meeting because of family engagements, said in a post on Twitter. The bill will ensure IIMs are “board-driven, with the chairperson and director selected by the board”. This means neither the human resource development (HRD) ministry nor the president of India will have a say in the selection of top executives at these B-schools.

“The bill seems to have addressed the IIMs’ concern about autonomy while ensuring accountability”

– Ashish Nanda, director of IIM Ahmedabad

Currently, the boards largely make recommendations and the government either accepts or rejects their proposals. This includes subjects like the appointment of directors and the chairman of the board of governors. The bill became controversial because of concerns that it may erode the autonomy of these premier institutions. The IIMs protested against the bill in June 2015 when the first draft was put up for public feedback. “If the bill is passed in the current format, then there will be a revolt in the IIM system,” J.J. Irani, chairman of the IIM Lucknow board, said at the time.

Following intervention by the Prime Minister’s Office, the HRD ministry made changes to the draft, accommodating most of the demands of the elite schools. Most disputed issues, such as the composition of IIM boards, selection of board chairmen and course fees, will now be decided by the IIMs with little interference from the ministry

.According to the bill, the responsibility of running each IIM will be vested in its board headed by a chairperson who will be an eminent person from the field of education industry science or technology. This will help in treating diplomas equivalent to that of MBA. And the board will have power to select the Director as well.

Looks like a super good news to us. What are your thoughts? Tell this to your peers ASAP!

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