In a statement issued by GOI's Press Information Bureau, a copy of which is with MBAUniverse.com, the HRD Ministry, while admitting the move to frame up an Institute of Technology Act like legislation, said "Government do not wish to, in any way, curtail the autonomy of the IIMs." It adds, "The Government has been examining the issue of bringing the IIMs in the country under an umbrella legislation like the Institutes of Technology Act. It may be clarified that bringing the IIMs under the ambit of a Central law will in no way alter their accountability to the Parliament or their status of being public institutions"
Government believes that the act will in fact empower IIMs to offer their own degrees. "It will empower the IIMs to award degrees to the students which they are not competent to do so at present," says the Government.
While the debate on the need for legislation has been on for some time, Government can be seen as reacting to a scathing story done by Indian Express on September 27. In a story titled ' To control 'vocal' IIMs, Arjun plans a new law', the newspaper says that HRD Ministry is pushing for legislation that will curtail the autonomy of IIMs. The newspaper report says that Government has set up a committee to 'review' the functioning of IIMs, and is likely to push for legislation when the new directors take over at IIM-A, IIM-B and IIM-C in next few months. The five year term of three directors at IIM-A, IIM-B and IIM-C will get over this year. (Click the link below to reach to the Indian Express story: http://www.indianexpress.com
Taking the news report head on, government says, "Attention of the Government has been drawn to a report published in a section of the Press, today, stating that in order to control IIMs a new law is being planned. This news item is far from truth and is not based on facts."
Putting IIMs as 'public institutions' falling under the purview of Parliament, government says, "The IIMs in the country function under their respective Memorandum of Associations (MoAs) and rules and regulations framed thereunder. They are societies registered under the Societies Registration Act. 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."
Pointing out to IITs who function under the Institutes of Technology Act (1962), government says, "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 under the Act."
Taking about setting up a review committee, government says that this is not set up to curtail the autonomy of IIMs. Says the government, "In the past, two such committees were set up in the years 1979 and 1991 under the chairmanship of Shri H.P. Nanda and Dr. V. Kurien, respectively. Since almost one and a half decades has elapsed since the last review, the Government decided to constitute a third Review Committee under the chairmanship of Shri S. Venkitaramanan, former Governor, Reserve Bank of India. Venkitaramanan has expressed his inability to chair this Committee because of his deteriorating health and the Government are in the process of nominating a suitable Chairperson to head this proposed Review Committee." It adds, "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, scholarships and freeships etc. to the students, their organizational and administrative structure etc. It may be clarified that enactment of a suitable legislation for IIMs is not one of the terms of reference of the proposed Review Committee."
How the IIMs and the media organization in question react to this statement remains to be seen.
