IIMA questions the regulations proposed in new draft of IIM Bill 2015

Ahmedabad

Addressing the media, Indian Institute of Management, Ahmedabad (IIMA) Board Chairman AM Nayak and Director Ashish Nanda today raised questions on the present draft of The Indian Institute of Management Bill, 2015. The draft has been put online for public comments at present.

Shri Nayak said he was surprised to see the draft bill on the website, because after two and half years long process which involved series of consultative meetings, IIMS and government had arrived on agreement for different draft last year, but later the bill was not moved in parliament, and now there was suddenly a new draft of bill on website.

Mr. Nayak said IIM was started by society and not government. The new bill if passed in present form will make IIMs just operational centers while all approvals and directions will come from centre. There’s no autonomy in present format of bill. While honorable Prime Minister wishes that there should be at least 25 institutes in India that are world-class, the draft bill is an action in opposite direction. Out of top 100 institutes, China contributes 25 while there’s none from India. The draft bill will make situation even worse with powers like selection of board chairman, term of director, fee structure, formation of new department, establishment and maintenance of buildings, recruitment, faculty recruitment and evaluation, decisions by chief administration officer, director etc are to be regulated and controlled by central government.

Mr. Nayak further said that the meetings of IIMs with government went on for two and half years over the issue of draft bill and the last meeting was held in October 2014 in this regard. “But I am surprised now that there’s different draft on website which is worse than even the original draft that we opposed.”

He said the IIM has written a letter to concerned ministry on why this draft bill should not be in present shape and form.

He said, “we are having conversation with HRD ministry and we are helping them to understand that what are the possible impacts if the bill is passed in present form. Perhaps they are also not fully aware about the kinds of regulations that have been mentioned in this draft, and their impacts and consequences. We feel that eventually they will understand our point.”

Mr. Nayak said there are three more IIMs that are also in communication with HRD ministry regarding too much regulations and controls in present draft.

Speaking to media persons, IIMA Director, Shri Ashish Nanda said, it is fine if government looks at out functioning from distance and corrects us when needed, but micro management is not good idea. Control in every decision would harm excellence and innovation. The present bill if passed would harm management education.

Mr. Nanda shared the outcome of annual accounts presented in today’s board meeting and said IIMA has crossed Rs 200 crore revenue mark. He added that quality remains main focus and not revenue.

– DeshGujarat