A huge majority of management experts have called for immediate withdrawal of government intervention in IIMs as it was making them financially and intellectually sick, an Assocham survey revealed.
Of the 200 participants in the survey conducted by Education Council of industry body Assocham, 90 per cent said representation of Human Resource Development Ministry should not be allowed in these institutes of excellence.
The IIMs may become financially and intellectually incompetent, with the credibility going beyond repairs if the increasing government intervention is not stopped in time, the survey revealed.
Around 85 per cent of the respondents felt that IIMs should be left entirely on their internal resource generation with the management having power of decision making as regard to fee structure and the number of seats.
In order to meet the growing demand of quality education for aspiring youth, the chamber has suggested opening of atleast two IIMS every year in collaboration with the states.
The respondents felt that the IIMs should not accept any budgetary allocations by way of grants as it will influence the decision making of these institutions.
Of the total respondents, 65 per cent blamed sickness and accumulation of non-performing assets in the state owned companies, purely because of government representations in them which influence the decisions of the board to suit the political interests.
As Assocham's findings, close to 90,000 students go abroad for higher studies with each one incurring an expenditure of Rs 15 lakh leading to huge foreign exchange outflow. The money, which goes out of the country, can be used for creating better institutes here, the statement said.