03 Aug 2023 Indian Institutes of Management (Amendment) Bill, 2023
This article covers “Daily Current Affairs” and the topic details “Indian Institutes of Management (Amendment) Bill, 2023”. The topic “Indian Institutes of Management (Amendment) Bill, 2023″ has relevance in the Governance section of the UPSC CSE exam.
For Prelims:
Purpose of the Bill?
For Mains:
GS 2: Governance
Rationale for Amendments?
Indian Institutes of Management Act, 2017?
Why in the news:
The government has introduced a Bill in Parliament that grants itself considerable authority in the appointment and dismissal of Directors at the Indian Institutes of Management (IIMs).
Purpose of the Bill:
The Bill aims to amend the Indian Institutes of Management Act, 2017, which declared 20 IIMs as “institutions of national importance” with the goal of achieving global excellence in management and allied areas.
Changes in Appointment of IIM Directors:
- The proposed amendments seek to give the government an expanded role in the appointment and removal of IIM Directors.
- The President of India will be the Visitor of every IIM, responsible for making appointments and conducting inquiries.
- The Board of Governors must obtain prior approval from the President before appointing or removing the Director.
- The Chairperson of the Board, instead of being appointed by the Board, will be nominated by the President.
Powers of the Visitor: The Visitor will have powers to audit and inquire into the affairs of any IIM, and the institute must comply with the Visitor’s directions.
Implications on Autonomy: The Bill has raised concerns about the potential erosion of autonomy for IIMs as the government gains more say in Director appointments and other key decisions.
Government-IM Differences: The Bill reflects the government’s efforts to assert greater control over IIM appointments and address past instances of disagreement between the government and IIMs over key appointments.
Rationale for Amendments:
- The government aims to have a stronger role in ensuring compliance with required academic credentials and other criteria during Director appointments.
- The proposed amendments have sparked debates on the balance between autonomy and government intervention in the administration of IIMs. Critics argue that excessive government involvement may undermine the academic and research independence of these premier management institutes. The Bill is currently under scrutiny in the Parliament and has implications for the future functioning of IIMs in India.
Salient Features of the Indian Institutes of Management Act, 2017:
- Declaration of National Importance: The Act designates the 20 existing Indian Institutes of Management (IIMs) as “institutions of national importance.” This recognition elevates the stature of IIMs and highlights their significant contributions to management education and research.
- Greater Autonomy: The Act grants the IIMs greater administrative, academic, and financial autonomy. The government will have no direct say in appointments or fee structures at these institutes. This move aims to empower the institutions to make decisions in their best interest without external interference.
- Degree-Granting Authority: Prior to the Act, IIMs could only award post-graduate diplomas to their graduates. The Act provides IIMs with the authority to award degrees to their students. This change aligns them with other prestigious universities and enhances the value of their academic programs.
- Coordination Forum: The Act establishes a coordination forum comprising representation from all 20 IIMs. This forum serves as a platform for discussing matters of common interest to all IIMs and acts as an advisory body to foster collaboration and synergy among the institutions.
- Board of Governors: Each IIM will have a Board of Governors, which will serve as the executive body of the institution. The Board will consist of up to 19 members, including eminent individuals, faculty members, and alumni. Two additional members will represent the central and state governments.
- Appointment of Chairperson: The Board of Governors will appoint its own Chairperson, thereby providing the IIMs with the authority to choose a leader who aligns with their vision and goals.
- Director Appointment: The Act grants the Board of Governors the responsibility of appointing the Director of each IIM. This appointment process is crucial in ensuring effective leadership and management of the institution.
Institute of National Importance:
The term “Institute of National Importance” refers to premier higher educational institutions in India that hold a significant role in developing highly skilled individuals within a specified region of the country or state. The designation is conferred to these institutions by the Central Government through an act of Parliament.
Key points related to Institutes of National Importance (INIs):
- Special Status: INIs receive special funding and recognition from the Government of India due to their pivotal role in promoting excellence in education and research.
- Degree-Granting Authority: INIs established by an Act of Parliament are granted “Degree Granting Status” under Section 22 of the University Grants Commission Act, 1956. This allows them to confer or grant degrees to their students.
- First Reference: The term “Institute of National Importance” was first mentioned in the Constitution of India’s Seventh Schedule. It included institutions like the Benares Hindu University, Aligarh Muslim University, Delhi University, and others declared as INIs by Parliament through legislation.
- Criteria for Designation: The specific criteria for awarding the status of an Institute of National Importance are not explicitly outlined in any document. However, institutions receiving this status are typically chosen based on their track record of academic excellence, research contributions, and overall impact on the education sector.
- Advantages and Supervision: INIs often operate outside the ambit of the University Grants Commission (UGC) and enjoy certain benefits related to taxes and financial support. They are closely supervised and funded by the Government of India, usually through the Ministry of Education (formerly the Ministry of Human Resources Development).
SOURCE:https://indianexpress.com/article/explained/govts-bill-on-iims-and-the-concerns-over-their-autonomy-8872043/
Q.1 What was the purpose of the Indian Institutes of Management Act, 2017?
(a) To grant greater autonomy to IIMs and declare them as “institutions of national importance.”
(b) To establish new Indian Institutes of Management in various states.
(c) To regulate the functioning of Indian Institutes of Management and their fee structures.
(d) To appoint government representatives as Directors of Indian Institutes of Management.
ANSWER: B
Q.2 Consider the following statements regarding Indian Institutes of Management (Amendment) Bill, 2023:
- The President of India will be the Visitor of every IIM, responsible for making appointments and conducting inquiries.
- The Board of Governors of IIMs must obtain prior approval from the President before appointing or removing the Director.
- The Chairperson of the Board will be nominated by the President of India.
How many of the statements above is/are correct?
(a) Only one
(b) Only two
(c) All three
(d) None of the above
ANSWER: C
Q.3 Discuss the key features of the Indian Institutes of Management (Amendment) Bill, 2023 and its potential impact on the functioning of IIMs. Also, analyze the debate surrounding the balance between autonomy and government intervention in the administration of IIMs.
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