The IIM Bill is a bold move

Introduction

1. In 2017, the Indian Institutes of Management (IIM) Act granted significant autonomy to IIMs.
2. The Act mandated an independent review of IIMs every three years, but few institutes have complied.
3. The government introduced the IIM (Amendment) Bill in 2023 to address non-compliance and regain control over key appointments and governance.

Provisions of the Bill

1. Creation of the Visitor: The Bill creates the post of Visitor, the President of India, who will appoint the chairperson of the Board of Governors (BoG) and approve director appointments.
2. Review and Inquiry Powers: The Visitor can initiate reviews or inquiries into institute affairs and remove directors independently.
3. Impact on Autonomy: The Bill seeks to undo the autonomy granted in 2017 and restore government control over key appointments and decision-making.

Reasons for the Government's Move

1. Non-compliance with the IIM Act 
2. lack of responsiveness to government queries and suggestions raised concerns.
3. Turbulence within the IIM system in recent years, including faculty and alumni protests, legal battles, and rising MBA course fees, indicated a governance vacuum.

Challenges with the IIM Act:

1. The 2017 Act led to a lack of checks and balances on directors, leaving the BoG ineffective in overseeing their actions.
2. The absence of norms on key matters, such as dean appointments, added to the governance challenges.

Government Control vs. Autonomy

1. The notion that government control is detrimental to educational institutions is flawed; state-controlled universities in California and the IITs have excelled under government oversight.

2. Autonomous boards lacking accountability can lead to lawless decision-making and undermine institutional brands.

   Conclusion 

   The government's move to restore accountability in the IIM system through the IIM (Amendment) Bill has sparked debates on governance and autonomy. While some may resist the government's intervention, the need for democratic accountability in public institutions remains crucial. Striking a balance between autonomy and accountability is essential to ensure effective governance and the preservation of the IIM brand. The government's courage in seeking to address governance challenges should be appreciated as it aims to strengthen the educational ecosystem and promote transparency and responsiveness within IIMs.