Answer:

Introduction:

The Indian Institutes of Management (IIMs) are flagbearers of management education in India. The Indian Institutes of Management (Amendment) Bill, 2023, introduced by the Central Government, has kindled concerns regarding the autonomy of IIMs. This bill seeks to modify the Indian Institutes of Management Act, 2017, particularly concerning the appointment processes of key personnel within the IIMs.

Body:

Key Provisions of The Indian Institutes of Management (Amendment) Bill, 2023:

• Introduction of the President as the “Visitor”:
  • There was no role for the President concerning the IIMs under the 2017 Act.
  • In the new bill, the President will serve as the “Visitor” for every IIM, and this role involves making appointments, auditing institutional workings, and initiating inquiries.
• Appointment of the Director:
  • In the existing framework, Directors are appointed by the Board of Governors from candidates suggested by a search-cum-selection committee. This committee was constructed by the Board and consisted of a chairperson and three eminent members.
  • The New Bill mandates the Board to gain prior approval from the President for the Director’s appointment. 
  • This implies that the Ministry of Education can counteract the Board’s decision. 
  • Furthermore, the search-cum-selection committee will now consist of one member nominated by the Visitor (President) and only two other “eminent” members.
• Removal of the Director:
  • In the existing framework, the process was primarily internal with the Board of Governors.
  • The Board must secure prior approval from the President to dismiss the Director, as per the 2023 Bill. 
• Appointment of the Chairperson:
  • The Board was responsible for appointing the Chairperson, in the existing framework.
  • The Chairperson will now be a nominee of the President, removing the power of appointment from the Board.
• Institutional Review:
  • The President has been empowered to assign one or multiple individuals to review the work and progress of any IIM and to conduct inquiries into their affairs.

The Bill attempts to enhance the autonomy of IIM’s  :

• Shift in Power Dynamics:
  • The Bill centralizes the power of key appointments, such as those of the Director and Chairperson, by seeking the President’s approval, which essentially means decisions would be influenced by the Union Council of Ministers or specifically, the Ministry of Education.
• Influence in Selection Committees:
  • The inclusion of a member nominated by the President in the search-cum-selection committee implies direct governmental influence in the selection process of Directors.
• Accountability and Review Mechanism:
  • While the introduction of a review mechanism via the President could be seen as a way to ensure transparency and accountability, it also signifies potential governmental intervention in IIMs’ affairs.

Conclusion: 

The Indian Institutes of Management (Amendment) Bill, 2023, while potentially aiming to bring transparency and accountability, seems to have diluted the autonomy previously enjoyed by IIMs. The enhanced role of the President (and by extension, the Ministry of Education) in appointments and operational oversight represents a departure from the decentralization philosophy underpinning the 2017 Act. While the centralization might ensure alignment with broader national education goals, the trade-off in institutional autonomy needs to be thoroughly assessed.

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