Govt gives IIMs more powers | delhi | Hindustan Times
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Govt gives IIMs more powers

The Indian Institutes of Management have earned the government’s nod for key powers allowing the premier B-schools to set up new centres in India and abroad, nominate candidates for their top posts and pay teachers better.

delhi Updated: Oct 13, 2010 23:45 IST
Charu Sudan Kasturi

The Indian Institutes of Management have earned the government’s nod for key powers allowing the premier B-schools to set up new centres in India and abroad, nominate candidates for their top posts and pay teachers better.

The IIMs and the human resource development ministry will amend the memoranda of understanding between the institutes and the government to facilitate greater autonomy, the B-schools and the HRD ministry decided on Wednesday.

The institutes also agreed to a set of reforms proposed by three panels set up earlier this year, at a meeting between HRD minister Kapil Sibal and directors and chairpersons of the IIMs.

“From our perspective, winning the autonomy we appear to have won today is critical if we are to expand and seriously compete with the best B-schools in the world. That was the importance of today’s decisions,” an IIM director told HT after the meeting.

The MoAs between the IIMs and the government define the powers of the B-schools to act on their own, and the proposed amendments will specifically allow each IIM to set up new centres in India and abroad.

At present, the IIMs need to obtain the government’s explicit sanction each time they want to set up a new campus or centre. “Now, the criteria for opening new centres will be their viability, not the whims of any officials,” the director said.

The HRD ministry at present plays a role in setting up panels that pick nominees for the post of director for any IIM. The institutes and the HRD ministry on Wednesday agreed that now on the board of governors of each IIM will pick the nominees for the post of director.

The government will, however, continue to hold the power to finally pick one from the list of three, sources said. Sibal also agreed to allow the IIMs to supplement government salaries for teachers and directors with additional pay from funds generated by the IIMs themselves.

The institutes and the government decided that the IIMs will set up special offices to draw funds from alumni and industry to enhance their endowments.