New Delhi, August 9, 2023: The Rajya Sabha has given its nod to the Indian Institutes of Management (IIM) (Amendment) Bill 2023, a pivotal move that designates the President of India as the official “Visitor” to all IIMs across the country.
The bill, which had received approval from the Lok Sabha on August 4, seeks to amend the 2017 IIM Act. While the bill’s passage marks a significant development, concerns have been voiced regarding the potential impact on the autonomy of these esteemed business schools.
Under this bill, the “Visitor” will be vested with the authority to nominate the chairperson of the board of governors, supervise the appointment and removal of directors, and conduct audits of the functioning of all 20 IIMs nationwide. Moreover, the legislation classifies the National Institute of Industrial Engineering (NITIE), Mumbai, as the 21st IIM of the country.
Union Education Minister Dharmendra Pradhan, addressing the debates, affirmed that the bill aims to ensure governance accountability while upholding “social justice”. He clarified, “This bill has been introduced to establish accountability while ensuring the preservation of academic autonomy.”
The amendment holds a two-fold purpose: it seeks to reinforce the constitutional framework for enforcing compliance with the Central Educational Institutions (Reservation in Teachers’ Cadre) Act, 2019, within IIMs. This addresses concerns related to reservation policies and representation of marginalized sections.
While apprehensions about potential autonomy compromise were raised during the deliberations, certain members, including V Vijaysai Reddy and Amar Patnaik, lent their support to the bill. They emphasized the symbiotic relationship between autonomy and accountability.
The IIMs have received substantial financial backing, with over ₹6,000 crore invested in their establishment. However, discussions also underscored the need for adequate budgetary support to match the increasing number of IIMs.
