The Centre is contemplating the introduction of a law to empower the Indian Institutes of Management (IIMs) to offer degrees like universities without curtailing their autonomy.

“The Government has been examining the issue of bringing the IIMs in the country under an umbrella legislation like the Institutes of Technology Act and they would be able to confer degrees,” the Human Resource Development Ministry sources said.

There are six IIMs at Ahmedabad, Bangalore, Kolkata, Lucknow, Kozhikode and Indore providing Post Graduate diplomas and executive certificate programs.

“The IITs have been flourishing as institutes of excellence under the Institutes of Technology Act and their autonomy has in no way been adversely affected,” sources said.

However, the ministry had also clarified that bringing the IIMs under the ambit of a Central law would in no way alter their accountability to the Parliament or their status of being public institutions.

Dismissing speculations that bringing the IIMs under such a law would adversely affect the autonomy of the  B-schools the ministry said that they would continue to enjoy complete autonomy in the academic matters and matters relating to fees, selection of faculty, introduction of new courses,etc.

“The IIMs are public institutions and are accountable to the Parliament. Their accounts are annually audited by the Comptroller & Auditor General and their Annual Reports along with the audited accounts are submitted to the Parliament,” the ministry said in a statement.

It also clarified that even though the three IIMs at Ahmedabad, Kolkata and Bangalore were not dependent on government funds for their day-to-day operational expenses, this in no way could compromise their status of being public institutions.

The IIMs need permission from the Centre even as per the existing MoAs to acquire or dispose of immoveable properties.

Section 5 of the MoAs of all the IIMs empowers the Central Government to appoint one or more persons to review the work and progress of these Institutes.

The official statement said that in the past, two such committees were set up in the years 1979 and 1991 under the chairmanship of H P Nanda and Dr V Kurien, respectively.

Since almost one and a half decades has elapsed since the last review, the Government has decided to constitute a third review committee under the chairmanship of S Venkitaramanan, former Governor, Reserve Bank of India.

“The Terms of Reference of this committee, inter alia, include review of present status of IIMs in fulfillment of their objectives, their expansion proposals during the 11th Plan, per student cost of various courses, availability of educational loans and scholarships to students, their organisational and administrative structure etc,” it said.
However, since S Venkitaramanan has expressed his inability to chair this committee because of his deteriorating health, the Government is in the process of nominating a suitable chairperson to head this proposed review committee, it said.