Lok Sabha passes IIM (Amendment) Bill, 2023

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The Lok Sabha passed the Indian Institutes of Management (Amendment) Bill, 2023, today, August 4. Replying to a debate on the Bill, Education Minister Dharmendra Pradhan said the government has no intention to interfere with the autonomy of the IIMs.
According to the Indian Institutes of Management (Amendment) Bill, 2023, which seeks to amend the IIM Act of 2017, Concerns have been raised about this bill’s possible benefits and drawbacks, as well as how it may affect the Indian Institutes of Management (IIMs) and management education in India.
Key provisions
It aims to amend the IIM Act, 2017, to regulate IIMs more closely, altering the process of appointments, removals, and inquiries into their affairs. It redesignates the National Institute of Industrial Engineering (NITIE) in Mumbai as IIM, Mumbai, making it the country’s twenty-first IIM. Under the bill, the President of India must first approve the appointment of IIM Directors and the Chairperson of the Board of Governors.
The bill gives the President the authority to launch and oversee inquiries into IIM matters and gives the central government the authority to prescribe procedures for dissolving or suspending an Institute’s Board.
Factors leading to the introduction of the Bill, including the dispute over the issuance of One-Year Executive MBA degrees between top management schools and the Centre, where institutes continued to give degrees despite government reservations, may have influenced the need for tighter regulation.
The re-appointment of IIM Rohtak’s Director, Dr. Dheeraj Sharma, in spite of government objections, demonstrated a conflict between institute autonomy and government concerns.
The IIM Ahmedabad logo change plan was met with faculty criticism, possibly pointing to a rift between the institute’s leadership and stakeholders. IIM Calcutta Director’s Resignation: The resignation of IIM Calcutta’s Director after claims of abuse of authority and unethical behaviour sparked discussions about governance and accountability.
Some claim that the IIM (Amendment) Bill 2023 will reduce IIM autonomy, but others regard it as a step towards improving democratic accountability and government oversight.
Directors have differing views on the change; some think it is a step backward, while others see it as a chance to increase responsibility and produce better results.
Potential Impact, by increasing accountability through supervision and investigations by the government, the measure could promote openness and responsible governance.
The bill may establish a more structured governance framework, preventing conflicts and ensuring better decision-making. The bill’s impact on Indian management education will be closely watched, with outcomes hinged on the delicate equilibrium established between institute autonomy and government control.