The Indian Institutes of Management (IIMs) have long been hailed as prestigious institutions providing exceptional management education and contributing significantly to various sectors of the Indian economy. In 2017, the IIM Act was enacted, which created an academic council for each IIM to make important academic decisions. However, recent concerns over the autonomy of these institutions and past conflicts regarding key appointments have prompted the government to propose amendments. The Indian Institutes of Management (Amendment) Bill, 2023, aims to grant the central government an expanded role in the appointment and removal of IIM Directors, declaring all IIMs as ‘institutions of national importance.’
Proposed Amendments and Background
The primary focus of the Indian Institutes of Management (Amendment) Bill, 2023, is to revise the current process of appointing and removing IIM Directors and to increase the involvement of the central government in these processes. The Bill seeks to address concerns over the autonomy of IIMs while maintaining their status as institutions of national importance.
Giving Central Government a Say in Director Appointments
The proposed amendment suggests that the President of India becomes the “Visitor” of each IIM under the IIM Act. This designation will grant the President the authority to make appointments, audit the functioning of the institutions, and conduct inquiries when necessary. This change is a significant shift from the current process, where Directors are appointed from a pool of names recommended by a search-cum-selection committee constituted by the Board of Governors, with limited government intervention.
Government’s Power to Veto Appointments
Under the Bill, the Board of Governors will be required to seek prior approval from the President before appointing a Director. This effectively gives the Ministry of Education the power to veto the Board’s choice, ensuring greater government oversight in key appointments. The government will also have a say in the initial selection process through the search-cum-selection committee.
Changes in Board Chairperson Appointment
Another significant amendment in the Bill is the appointment of the Chairperson of the Board. The Bill proposes that the Chairperson is nominated by the President, taking away the Board’s power to appoint the Chairperson independently. This move is expected to further strengthen the government’s influence in the functioning of IIMs.
Enhanced Monitoring and Inquiries
The Bill allows the President to appoint one or more persons to review the work and progress of any Institute and hold inquiries into their affairs. This provision intends to ensure accountability and transparency within the institutions.
Rationale and Objectives
The proposed amendments in the IIM Act reflect the government’s concerns over the autonomy of IIMs. By increasing the government’s role in decision-making processes, the Bill aims to prevent potential issues and conflicts in the future. The government believes that having a stronger say in key appointments will ensure that only the most qualified and suitable candidates lead these premier educational institutions.
