Daily Current Affairs : 29-July-2023
In recent news, the Union Education Minister introduced the Indian Institutes of Management (Amendment) Bill, proposing significant changes to the existing 2017 Act. The Bill aims to redefine the role of the Visitor in the appointment of key positions within the IIMs, as well as to grant the central government more authority in certain situations. However, these proposed amendments have raised concerns among the IIMs, who fear a potential loss of autonomy.
About the Indian Institutes of Management (Amendment) Bill
- Empowering the Visitor’s Role:
- The Bill suggests amending the 2017 Act to allow the Visitor, who is the President of India, to nominate the Chairperson of the Board of Governors of IIMs.
- Section 16 of the Act would be amended to provide the Visitor with more powers in the appointment of IIM Directors.
- A new Section, 10A, will be added, making the President the Visitor of every Institute.
- Provision for Interim Board:
- The Bill proposes empowering the Central government to establish an interim Board in the case of suspension or dissolution of the existing Board of Governors.
Key Highlights of the Bill
- Director Appointment Process:
- Under the proposed amendments, the Director of each IIM will be appointed from a panel of names recommended by a search-cum-selection committee.
- This committee will be constituted by the Board and will consist of the Board Chairperson (who will also be the committee Chairperson), one member nominated by the Visitor, and two Members selected from eminent professionals.
- Name Change for National Institute of Industrial Engineering:
- The Bill includes changing the name of the National Institute of Industrial Engineering, Mumbai, to the Indian Institute of Management, Mumbai.
- Deletion of Section 17:
- The Bill eliminates Section 17 of the Act, which previously empowered the Board to initiate an inquiry against the Director.
- Amendment to Section 29:
- Section 29, focusing on the “Coordination Forum of the Institute,” will be amended to have an eminent person nominated by the Visitor as the Forum’s Chairperson.
Concerns of the IIMs
The proposed amendments have raised concerns among the IIMs, primarily related to their autonomy:
- The IIMs fear that the amendments may impinge on their autonomy, which they valued greatly.
- However, they were initially assured of retaining complete autonomy, including in the appointment of Directors and empowerment of their boards.
- Now, with the amendments, the IIMs might be governed similarly to the IITs, NITs, and Central Universities, potentially limiting their decision-making freedom.
Important Points:
- The Indian Institutes of Management (Amendment) Bill was introduced by the Union Education Minister.
- The Bill proposes to amend the 2017 Act to redefine the role of the Visitor, allowing them to nominate the Chairperson of the Board of Governors of IIMs.
- It suggests granting more powers to the Visitor in the appointment of IIM Directors.
- The President of India will be made the Visitor of all IIMs through a new Section, 10A.
- The Central government will have the authority to form an interim Board in case of suspension or dissolution of the existing Board of Governors.
- The Director of each IIM will be appointed from a panel of names recommended by a search-cum-selection committee, including members from various fields.
- The National Institute of Industrial Engineering, Mumbai, will be renamed the Indian Institute of Management, Mumbai.
- The Bill removes Section 17, which previously allowed the Board to initiate inquiries against the Director.
- Section 29, dealing with the “Coordination Forum of the Institute,” will be amended to have an eminent person nominated by the Visitor as the Chairperson of the Forum.
- The IIMs initially opposed the Bill, fearing a loss of autonomy but later accepted it with assurances of retaining autonomy in Director appointments and board empowerment.
- The IIMs’ concerns stem from potential governance similarities with IITs, NITs, and Central Universities, impacting their decision-making freedom.
Why In News
he Union Education Minister, amidst growing demands for reform in higher education, took a pivotal step by introducing the Indian Institutes of Management (Amendment) Bill to Parliament. The proposed amendment aims to empower the IIMs with greater autonomy and flexibility, fostering innovation and excellence in management education across India.
MCQs about Indian Institutes of Management Amendment Bill
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What is the primary purpose of the Indian Institutes of Management (Amendment) Bill?
A. To change the names of IIMs to reflect their locations.
B. To grant more powers to the President in appointing IIM Directors.
C. To provide complete autonomy to IIMs in all matters.
D. To empower the Central government to dissolve IIMs.
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What major change will occur to the National Institute of Industrial Engineering, Mumbai?
A. It will be renamed as the Indian Institute of Management, Mumbai.
B. It will become an autonomous institution separate from IIMs.
C. It will be dissolved and replaced by a new management institute.
D. It will be merged with other IIMs under a common governing body.
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What aspect of the Bill raised concerns among the IIMs?
A. The amendment to Section 17 empowering the Board to initiate inquiries against the Director.
B. The provision for an interim Board in case of suspension or dissolution of the Board of Governors.
C. The change in the Visitor’s role to nominate the Chairperson of the Board of Governors.
D. The fear of losing autonomy, despite assurances of retaining it in Director appointments.
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