In a controversial proposal by a government panel, individuals can also bid to buy membership of an Indian Institute of Management's managing society alongside corporate entities under.
The panel headed by Maruti Suzuki chairman RC Bhargava was appointed by HRD minister Kapil Sibal. Its report, accessed by HT, has also recommended that IIMs be allowed to offer discounts to select bidders.
The panel, which also has directors of IIMs in Bangalore, Calcutta and Kozhikode as its members, has argued "the most effective way" of ensuring "owners" with a long-term commitment "is by making the payment of a substantial donation to the IIM as a condition for becoming a member of the Society".
As reported by HT on Wednesday, the panel's recommendation that corporates be allowed to become members of the managing societies of the IIMs in exchange for Rs20 crore has triggered protest from faculty at the B-schools. Teachers are also protesting a move to make it mandatory for every teacher to teach 160 hours a year.
The HRD ministry annually awards grants of about Rs5 crore to each of the IIMs other than those in Ahmedabad, Bangalore and Calcutta and a grant of Rs20 crore would place a private investor in effective control of the IIM, critics said.
HRD ministry sources confirmed they have received a resolution from the IIM Bangalore faculty council opposing the proposals. But sources also said opposition to the reforms may grow stiffer. The faculty councils of IIMs — Ahmedabad and Calcutta are meeting this week.
Alumni can buy membership of an IIM's managing society for Rs3 crore while other individuals will have to pay Rs5 crore, the Bhargava panel has suggested. "The Society could, for reasons to be recorded in writing, make a reduction in amounts fixed for individuals and alumni," it says.
The panel has recommended the government provide a grant matching the money collected, and that the total be kept as corpus. Interest from the corpus can be used to hire select faculty, or to top up government salaries of faculty and the director, the report says.