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The Indian Institutes of Management (Amendment) Bill

The Indian Institutes of Management (IIM) (Amendment) Bill was recently introduced in the Lok Sabha to amend the existing 2017 Act governing IIMs. The bill proposes significant changes in the governance and administration of IIMs, and it has sparked discussions regarding its impact on the autonomy of these premier management institutes.

This topic of “The Indian Institutes of Management (Amendment) Bill” is important from the perspective of the UPSC IAS Examination, which falls under General Studies Portion.

What: Amendment to the 2017 Act

The Bill aims to amend the 2017 Act that governs the functioning and operations of Indian Institutes of Management (IIMs).

Highlights

President as Visitor

  • The Bill designates the President of India as the Visitor for all IIMs.

Visitor’s Role in Board of Governors

  • The Visitor will nominate the Chairperson of the Board of Governors of IIMs.

Interim Board Constitution

  • The central government will have the authority to constitute an interim Board in case the Board of Governors is suspended or dissolved.

Changes in Board’s Role

  • The selection of the Chairperson and the appointment of a Director will now require prior permission from the Visitor.

Director Appointment Process

  • The Director of an IIM will be appointed from a panel of names recommended by a Search-cum-selection committee. This committee will be constituted by the Board and will include the Chairperson of the Board, one member nominated by the Visitor, and two members chosen from eminent administrators, industrialists, educationists, scientists, technocrats, and management specialists.

Board Removals

  • With the Visitor’s approval, the Director can be removed from their position, and the Visitor also holds the power to terminate the Director.

Institute Name Change

  • The bill proposes changing the name of National Institute of Industrial Engineering, Mumbai, to Indian Institute of Management, Mumbai.

Significance

Impact on IIMs’ Autonomy

  • Expert opinions suggest that the Bill may affect the autonomy of IIMs and bring their governance structure closer to that of central universities.

How: Amendments to the Act

Newly added Section 10A

  • This section establishes the President as the Visitor of every IIM.

Amended Section 10

  • The Chairperson of the Board of Governors will now be nominated by the Visitor.
  • The central government gains the power to constitute an interim Board in cases of suspension or dissolution of the existing Board.

Amended Section 16

  • The Visitor gains more powers in the appointment of IIM Directors.

Amended Section 29

  • This section allows the Visitor to nominate an eminent person as the Chairperson of the Coordination Forum of the Institute.

Deleted Section 17

  • The bill eliminates the Board’s power to initiate an inquiry against the Director.

Conclusion

The Indian Institutes of Management (Amendment) Bill aims to make significant changes in the governance and administration of IIMs by granting more powers to the Visitor and central government. While proponents argue that these changes could improve coordination and efficiency, some experts are concerned that it may compromise the autonomy of these prestigious management institutes. The bill’s impact and implications will be closely monitored as it progresses through the legislative process.

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