New Delhi: The Union cabinet on Tuesday cleared the Indian Institutes of Management (IIM) Bill, 2017 that aims to grant “complete autonomy” to the elite B-schools and allow them to issue degrees instead of diplomas as is the case now.
The IIM bill, under discussion for the past fours years, will grant the premier management schools autonomy is terms of administration, recruitment and daily functioning, Frank Noronha, chief spokesperson of the government, tweeted after the cabinet meeting.
The bill will allow IIMs to “grant degrees to their students and complete autonomy, combined with accountability,” he added.
The bill will ensure IIMs are “board-driven, with the chairperson and director selected by the board”.
This means, neither the human resources development (HRD) ministry nor the President will have a say in the selection of top executives of these B-schools.
Currently, the boards largely make recommendations and the government either accepts or rejects a proposal. This includes subjects like the appointment of directors and the chairman of the board of governors.
The bill became controversial over fears that it would erode the autonomy of these premier institutions. However, following an 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, Mint reported on 18 August.