New Delhi: The Centre is planning to introduce the Indian Institute of Management (IIM) Bill in the winter session of Parliament that is set to begin on 26 November, after addressing almost all the concerns of the various IIMs.

The government on 9 October ironed out almost all the differences with the IIMs over the bill. The bill titled, The Indian Institute of Management Bill, 2015, will “enable the IIMs to grant degrees", said a government notification, dated 23 November, reviewed by Mint.

The human resource development ministry held several rounds of meeting with stakeholders, including the IIMs, following an outcry that the previous version of the bill will undermine the autonomy of the elite institutions and give more power to the HRD ministry on all key issues governing the institutes.

The ministry has always maintained that the objective of the bill is to allow IIMs give degrees instead of post-graduate diploma in management (PGDM) as is the case now. Though the PGDM given by older IIMs like IIM-Ahmedabad, Calcutta, Bangalore and Lucknow are well recognized in India and abroad, the degree-granting power will allow newer IIMs a level-playing field in terms of their courses and certificates issued there on. Currently, India has 19 IIMs.

On 9 October, senior officials in the human resource development (HRD) ministry, including higher education secretary Vinay S. Oberoi, met the directors of all IIMs and discussed the bill clause by clause for more than four hours. In the meeting, Oberoi listened to the key reservations of IIMs over the proposed legislation and almost cleared the way for the next course of action on the bill, Mint had reported on 10 October. After the meeting, the ministry held at least one more round of meeting with the IIMs that were not present at the 9 October meeting.

After the HRD ministry put up the previous version of the bill for comment, there was a nationwide debate over the government move and both IIMs and industry criticised the ministry for its backdoor entry in the decision-making process of the IIMs.

Mint first reported on 29 June that the IIM Bill will be redrafted following sharp criticism from the older lot of IIMs and industry. There sections—3(k), 35 and 36—will be modified because IIMs have serious concerns over provisions that seek to vest powers in the ministry to take decisions related to the appointment and tenure of directors, and dilute the autonomy of the elite B-schools. Overall, these sections empower the Union government to set the rules for IIMs.

Section 35 reads: “Regulations mean regulations made by the board with the approval of the central government"; Section 36 states: “The board may, with the approval of the central government, by notification, make regulations not inconsistent with this Act and the rules made thereunder to carry out the provisions of this Act".

The new version of the bill is not yet available and a professor from one of the older IIMs said that “most of the issues is believed to be resolved". But the professor, who requested anonymity, cautioned that until the “bill in its final shape is available, it will be difficult to openly comment".

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