Four IIMs set to get full autonomy

Updated on: Tuesday, June 07, 2011

The IIMs at Ahmedabad, Bangalore, Indore and Kozhikode would be among the first four to have amended the Memoranda of Association that would make them fully autonomous in all respects – from appointment of directors to setting up of campuses and making salaries flexible. The HRD ministry has referred the amended MoAs of the four IIMs to the law ministry for vetting. HRD has also sought the views of the finance ministry. The approved MoAs would then be adopted by the board of governors of the IIMs ushering in the change.

But since all new IIMs and few old ones are still fully dependent on the government for funding, the amendment in MoA could be a limited exercise in the long run. “The law ministry is examining if there is an equal measure of autonomy and accountability in the amended MoAs,” one official said. On the responsibility side, the teachers would be mandated to work for 160 hours and annual targets would be set for them. The amendment in MoAs is a follow-up exercise after the government agreed last year with most of the recommendations made by three separate committees headed by RC Bhargava, chairman of the board of governors of IIM-Ranchi, Ajit Balakrishnan, IIM-Calcutta chairman, and Hari S Bhartia, chairman of IIM-Indore.

The amendments allow IIMs to have a predominant role in the selection of directors. The IIMs will suggest three names to the government from which one will be chosen. Presently, the HRD ministry issues advertisement for the post of director. The IIMs would also be free to top-up the salary of performing faculty members that could match global standards. But this would be done through financial resources organised by the institutes themselves, and the IIMs would be free to recruit foreign faculty. The institutes will also be free to dispose off property not acquired through funds provided by the HRD ministry and manage funds generated by them on their own. IIMs have been allowed to bring down the number of board members to 14. The composition of the board of governors would be changed so that the government, faculty and alumni have adequate representation.

Four IIMs set to get full autonomy

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