Indian Institutes of Management (IIMs) can now open centres across India and campuses abroad. At a meeting with chairpersons and directors of IIMs on Wednesday, human resources development (HRD) minister Kapil Sibal agreed to give the top B-schools more autonomy and flexibility.
Former HRD minister Arjun Singh had rejected a proposal by IIMB to open a campus in Singapore, but Sibal was persuaded by IIMs.
The B-schools can now make amendments in rules and go abroad. They won’t need the government’s nod each time they set up a campus overseas.
The government has also decided not to get directly involved in the appointment of IIM directors. It was, in principle, agreed at the meeting that now on the boards of governors of IIMs would suggest three names to the HRD ministry, which will choose one.
Till now, the government was making the appointments through general advertisements.
Sibal said the government would grant full powers to the boards to create posts and allow them to open centres in India and abroad, amend rules, acquire and dispose of properties not fully or partially funded by the HRD ministry, approve own budgets and manage funds generated by IIMs.
However, the minister said autonomy should go hand in hand with accountability and asked IIM faculty, directors and boards to prepare annual action plans and key performance indicators at each level and be fully accountable and transparent.
The meeting also considered reports of the three committees constituted at the last meeting in Bangalore. After discussing the report of the committee constituted to recommend a new governance structure for the B-schools, it was decided to bring down the strength of the IIM boards from 26 to 14.
The boards should have adequate members from IIM societies, government, faculty and alumni. It was agreed that the societies should have long-term members who take continuous interest in the running of IIMs.
After discussing the report of the committee on faculty and research, it was decided that IIMs can increase salaries of directors and faculty from funds generated by them. However, faculty would have to give individual work plans at the start of a year.
On the recommendations of the committee on fund raising, it was decided that IIMs should have a development office for the purpose and each IIM a fund-raising policy.
There are 11 IIMs at the moment, while two more will start operating shortly.
