No to privatisation, but favour corporate contribution: IIM-C

Updated on: Tuesday, April 05, 2011

The Indian Institute of Management Calcutta (IIM-C) is in favour of corporate contributions, but will say no to any move for privatisation of IIMs, a senior IIM-C official said.
"We favour corporate contribution for new IIMs as they may not be in position to generate resources adequately at least in the initial years. But under no circumstances we are in favour of privatisation of the institutes. Their autonomous status should continue," IIM-C Chairman of the governing board Ajit Balakrishnan said last evening on the sidelines of the institute's 46th annual convocation.

"To facilitate this, a fund can be contributed without any benefit or right in the institute board. But corporates must be allowed to get full tax benefit of the total contribution," he said.

Balakrishnan said India should also allow to set off the contribution by a corporate to any institute for a couple of years, similar the 5-year timeframe in US, if the total annual profit of the company is less than the total contribution.

"We have made presentation to Union Finance Minister Pranab Mukherjee and he has asked to wait till the major tax reform, Direct Tax Code, comes in place. Though so far the draft does not speak on this, we do hope it might be included in the final draft," he added.

The government had set up seven new IIMs across the country to create management student capacity to support India's growth story for the next few decades.

No to privatisation, but favour corporate contribution: IIM-C

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