IIMs cannot set up shop abroad: Arjun

Union Human Resource Development (HRD) Minister Arjun Singh today said the Indian institutes of management (IIMs), despite their autonomy, cannot function like companies or firms and set up brick-and-mortar campuses abroad.

"The IIMs may be autonomous but are not firms or companies. As government bodies, the IIMs have to abide by rules," Singh said in an interview with a private news channel.

There was no provision in their memoranda of understanding (MoUs) to establish brick-and-mortar campuses abroad as of now. If this was amended, they could do so, Singh said.

After the recent announcement by IIM-Bangalore to sign an MoU with the Singapore government to set up a centre there, the HRD ministry struck down the proposal, denying IIMs the option of expanding abroad.

Reacting for the first time after his ministry turned down the proposal, he said the IIMs were run on MoUs and were entitled only to tie-ups for research activities.

Meanwhile, Prime Minister Manmohan Singh said in Guwahati that he was not averse to the possibility of IIMs going global, but added that the timing for it may not be opportune.

"I think the HRD ministry feels there are still gaps in our own internal education," he said. At the present stage, when there was a considerable shortage of teachers in professional disciplines, the prime attention should be given to meeting domestic needs, the prime minister felt.

The HRD ministry has asked the prestigious B-schools to set up more centres within the country before going global.

Despite the directive, IIM-Ahmedabad's expansion planswithin the country seem to have suffered a setback with the Maharashtra government still undecided on the institution's proposal after five years. The Maharashtra government has asked for a 12 per cent domicile quota, which the institution has refused to grant.

The government also tried to impose the same pre-condition when the Indian School of Business (ISB) wanted to come to Maharashtra.