IIM Bill 2015 which has already been placed before the Cabinet is proposed to be introduced in latter half of the Budget session 2015-16 by Ministry of Human Resource Development (HRD) with the aim to empower all the IIMs to award MBA degree instead of Diploma in Management.
Presently, IIMs are neither affiliated to any University nor have been declared a deemed to be university and hence cannot award MBA degree as of now.
The bill, if introduced and passed in parliament will become IIM Act 2015.
So, let’s make a deep intervention into various features of this bill:-
- The IIM BILL, 2015, aims to empower the 13 premier B-Schools to award IIM-MBA degrees instead of Post Graduate Diploma in Management (PGDM) to its students at the end of the two-year MBA programme. Alongwith this diploma they issue a certificate that their PGDM programme is equivalent to an MBA degree to enable the passing out student to seek admission abroad in doctoral programme or apply for a job.
- “The new bill gives sweeping powers to the government, which makes the institution only an operational centre while all the major directions and approvals are allowed only from the Centre. The current bill if passed would take away the autonomy of the institution.”
- The bill would introduce a uniform term of four years for chairpersons of each IIMs. Currently, the chairpersons of the 6 old IIMs have a three-year term, while those of the 7 new ones get five years.
- The bill may put a question mark on highly rated PGDM programmes of top private B schools like XLRI, SPJIMR, MDI, BIMTECH, IMT, TAPMI and many more. It will create unfavourable situation putting the market validity of their PGDM programmes at loss.
- The draft Bill proposes that IIMs will need the approval of the ministry before notifying any change in fee structure, salary and remuneration, admission criteria or even scholarships and fellowships.
- Appointments of chairpersons and directors will need ministry nod. A visitor as a de facto head of the institute to be appointed through the ministry. Board of governors will need ministry approval before passing any regulation.