 "The IIM-Kozhikode campus in Kerala")
The Indian Institutes of Management (IIMs), especially the older ones, appear to be gaining ground in the fight for retaining their autonomy, which has been threatened by the draft IIM Bill 2015.
Officials of the human resource development (HRD) ministry are learnt to be reaching out to the institutes with the assurance that the question of their autonomy would be resolved satisfactorily.
The ministry appears to be rethinking the clauses that have been the bone of contention. One of them is Section 35, which empowers the Union government to "make rules for carrying out the provisions of this (IIM) Act". The other is subsection (1) of Section 36 that states the "IIM 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".
While the older IIMs - IIM-Ahmedabad, IIM-Bangalore and IIM-Lucknow - have spoken out openly against these clauses, the relatively newer ones have chosen to remain silent on the issue.
The draft IIM Bill 2015 proposes to grant statutory status to the 13 existing IIMs at Ahmedabad, Kolkata, Bengaluru, Lucknow, Indore, Kozhikode, Shillong, Raipur, Ranchi, Rohtak, Kashipur, Tiruchirappalli and Udaipur. It aims to declare them as "Institutions of National Importance" to enable them to grant degrees to their students.
The IIMs have protested the subjection of the board of governors to government control for any regulation, be it appointing chairpersons and directors, fixing fees and staff remuneration or deciding the curriculum. The IIMs also argue that the draft in its current form is not what was agreed upon by the institutes in their meeting with the HRD ministry in October 2014.
At a press conference, A M Naik, chairman of IIM-A board of governors, said, "The final bill, which was approved between all the IIMs and HRD ministry, has been 'completely changed' and made even worse than when we started three years ago." The Bill, he said, virtually turns the institutions into mere operational centres and gives sweeping powers to the government with all the major dictates, directions, approvals and regulations coming from Delhi.
Pushing for more freedom for all IIMs, Naik had further said, "More and more freedom should be given to educational institutions in framing curriculum, devising fee structure and recruitment of the faculty."
The question of degree
There is, however, a divide among the IIMs on certain aspects of the Bill. It is about whether or not there is a need for the IIMs to grant degrees?
While IIMs Ahmedabad, Bangalore, Calcutta, Lucknow, Indore and Kozhikode are happy to continue offering post-graduate diploma in management (PGDM), the newer ones want the power to grant a degree. Their argument is that a master of business administration (MBA) degree carries more weight than a diploma, both in academics and in the industry.
This is the argument that the government is believed to have latched on to while proposing changes in the draft bill.
"Till now, these institutions could award only certificate, post-graduate diploma and fellow programme in management certificate, which lacked universal acceptability in the field of academia and research," the ministry had stated while putting up the draft online for public consultation. "The post-graduate diploma in management programme was relatively unaffected by [the] absence of a formal degree, both in terms of recruitment of students as well as suitable placements in [the] job market but the fellow programme in management did not get the same status as that of a PhD in the job market, especially in faculty appointments," the ministry had stated. "The proposed Bill," it added, "will address this gap."
The older IIMs, however, argue that given their success in terms of global rankings and student placements, the premise of granting degrees is the weakest point in the entire debate. "The PGDM certificates offered by IIMs are stronger than any MBA degree. It would, in fact, degrade the IIMs if we began offering degrees instead of the post-graduate diplomas," says a member of the IIM-A faculty.
Making a concession
Samir Barua, former director of IIM-A, says he personally thinks there are alternatives to establishing IIMs under an Act of Parliament to enable them to grant degrees. "As of now, institutions that are under the All India Council for Technical Education (AICTE) or those that are established under a specific Act of Parliament are permitted to award degrees," he says. "One of the key reasons that the government gives to bring IIMs under an Act of Parliament is to facilitate them to grant degrees. I, however, think there is another way institutions may be permitted to grant degrees." He says they have suggested that institutions that have excelled may be recognised as "Institutes of National Importance". "Such institutes may be given the power to grant degrees. I would like to believe that several older IIMs would qualify for such a status. These institutes then need not be brought under the purview of the proposed Act. I am sure this would find acceptance among the parliamentarians," Barua says.
To ensure that this special dispensation is available only after it is earned, Barua suggests that the government may adopt "stringent criteria based on achievements, performance and rankings before an IIM is permitted to grant degrees. If required, the government may even put a threshold of at least 15-20 years of functioning before an IIM becomes eligible for such a status".
Some of the newer IIMs also agree to such a proposal. "Let the draft be split into two: one meant for the more experienced IIMs and the other for the relatively newer ones," says the director of a new IIM requesting not to be named. "It needs to be understood that the older IIMs have, for decades, functioned in a particular way that did not see direct intervention from the government. Some of them were not even receiving grants."
To be suddenly brought under the direct control of the government would understandably make them uncomfortable, he says. "But the newer IIMs have been dependent on government grants from day one of their inception. Hence, we do not mind such a control as long as we are sustained through the grants," he says.
While the debate rages on, a rethink of the draft Bill might be in the offing.
