The much debated and opposed both by IIMs and PGDM B-schools, although on entirely different ground, the pending controversial IIM Bill 2015 may seek the nod of Parliament this winter session in the redrafted form that proposes to retain autonomy of IIMs to a large extent.
Ministry of Human Resource Development (MHRD) has tried to redraft the pending IIM Bill 2015 and has either done away with or has modified the much objected clauses in the bill that sought to curb the autonomy of IIMs. Governing bodies of almost all the top rated Indian Institutes of Management (IIMs) not only wrote letters to MHRD but also shared their concerns in media and other public forums. With a view to address the concerns of IIMs, the IIM bill 2015 has been redrafted and has been listed to be tabled before the Parliament in the current ongoing winter session.
The modified and redrafted IIM Bill was circulated among different ministries for comments last week. Now the bill proposes to retain the powers of Governing bodies of IIMs to allow them to take key decisions on formation of academics, appointments among others.
Three clauses namely Section 36(1), 3(k) and 21 in the IIM Bill 2015 were the bone of contention between IIMs and MHRD. The first among the 3 objected clauses by IIMs was section 36 (1) of the proposed IIM bill. This section provided for the necessity of approval to be obtained by IIMs from MHRD to make rules on the fee structure, remunerations of employees as well as any major new construction in IIM Building. MHRD has removed this clause.
Next is the section 3(k) of the proposed IIM Bill 2015. This clause made it necessary for the IIMs to seek approval of MHRD before formulating any regulation.
Another Section 21 that empowered the government to issue any policy direction has also been done away with.
Earlier on Oct 9, 2015 directors of 13 IIMs and MHRD officials had a meeting. IIMs and MHRD are stated to have arrived at the consensus in the said meeting on various provisions objected earlier by IIMs in draft IIM Bill 2015 in a 5 hour meeting.
The pending IIM Bill proposing the award of MBA degree instead of Post graduate Diploma in Management ( PGDM) is now poised to become an Act in the next session of Parliament.
Although IIMs favoured the award of MBA degree instead of PGDM as proposed in IIM Bill, they objected to the provisions which aimed to curb the autonomy of these top rated B-schools.
On certain provisions the Ministry of HRD had convinced IIMs about their necessity and on few other objectionable ones MHRD conveyed that all the regulations and policy decisions would be taken by the BoG, and MHRD would facilitate to present the same in Parliament wherever required.
So far IIMs are not authorized to award MBA degree to their students and award only Diploma along with a certificate that the PGDM is equivalent to MBA. Despite the high reputation of IIMs, International institutions and universities refuse to provide admission to their fellow and doctoral programmes on the ground that the applicant is not a degree holder. International Corporate sector also take time to decide to offer suitable employment to diploma holders. The problem would not persist if the IIM Bill becomes IIM Act in near future.
Background: IIMs objected on 2 clauses
IIMs have been opposing the bill mainly on the ground that it would erode the autonomous structure of these top B-schools and once there is higher interference by MHRD in taking decisions on policy matters, awarding honorary degrees, scholarships and others, these top rated B-schools with large and reputed alumni base in corporate sector may also begin to shy away from actively participating and contributing to IIMs.
Prof Ashish Nanda, Director IIM Ahmedabad, Mr A M Naik Chairman BoG, IIMA and other top rated IIMs not only opposed the bill but had also written to Minister of HRD, Smriti Irani stating their deep reservations on the proposed IIM Bill as it aimed to compromise the autonomy of IIMs.
Both of these clauses were supposed to erode autonomy of IIMs as they proposed to take away the authority from IIM Boards and centralize it to the MHRD. The autonomy of IIMs was feared to be eroded after passing of the IIM Bill 2015 as IIMs might not be able to take even operational decisions quickly.
Clause 3(k) of IIM Bill 2015 reads “Regulations mean regulations made by the board with the approval of the central government.”
Clause 36 reads “The board may, with the approval of the central government, by notification, make regulations not inconsistent with this Act and the rules made there under to carry out the provisions of this Act”.
Now with the fog on MBA degree by IIMs cleared, it is very much possible that the candidates completing their PGP 2014-16 course may get MBA degree instead of PGDM from the IIMs.
At present there are 19 IIMs out of them 13 are running independently and 6 have started operation in 2015 under the mentorship of older IIMs. The proposed IIM Bill has also created unrest among private B-schools who also award PGDM instead of MBA. Many of these B-schools are preferred to IIMs to pursue management programme. The private B-schools have also started demanding from MHRD the authority to award MBA instead of PGDM to their students, if PGP from IIMs becomes an MBA degree.
Related Article
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IIM Bill: EPSI meeting in New Delhi to discuss response from PGDM B-schools
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