Govt role at IIMs to get bigger after Parliament passes Indian Institutes of Management (Amendment) Bill

New Delhi / Bengaluru: Indian Institutes of Management (IIMs) are set to see a bigger role from the government with both houses of parliament passing the Indian Institutes of Management (Amendment) Bill 2023.

While some academics said the move will increase accountability, some others call the shift in the powers of the premium business schools confining.

The latest amendments to the IIM Act seek to designate the President of India as ‘Visitor’ of every IIM covered by the Act.


Among other provisions, it mandates the board to obtain approval of the Visitor for appointing or removing a director. The bill also grants the Visitor the authority to terminate the services of the director.

“Things were better off without this amendment. IIMs cannot be used to carry on the government’s agenda by appointing their own people,” an IIM director said on condition of anonymity. “One needs to see a director’s qualifications and capabilities first before their affiliation,” the person said.

Some others see the amendments as a positive development.

“The IIM Act before this gave a free run to all boards of governors; some boards enjoyed their little accountability. Some directors would behave like they were the supreme authority of the institutes, and we have seen in certain cases, the harm done under some autocratic directors,” said Prafulla Agnihotri, director of IIM Sirmaur.

“Now that the President has become the Visitor, the boards will come under the direct supervision of the president and the government, which is a good thing because if the right director is not in place, s/he may not take the institute forward. The other implication is that it lays more responsibility on the shoulders of the government. They need to be judicious in their decisions, otherwise the progress of the IIMs will be halted,” added Agnihotri.

The amendments will create an additional layer of approvals for the appointment of the director and other senior leadership members of these institutes, said Amitabh Jhingan, partner – education at strategic consulting major EY Parthenon.

“The same objective could have been achieved by strengthening the process and governance around senior appointments and encouraging the institutions to strengthen the long-range strategic planning process,” he said.

Shrikrishna Kulkarni, chairperson of the board of governors of IIM Calcutta, said IIMs have three types of autonomy: academic, financial and administrative. “These amendments do not affect any of the above,” he said.

“Autonomy and accountability are two sides of the same coin,” Kulkarni said. “The board, the director and the academic council continue to be accountable to the people of India. There is nothing to suggest that the autonomy and academic freedoms of the IIMs is being reversed.”

IIM Nagpur director Bhimaraya Metri said the amendment will help the institutes get global recognition and credibility. “This is a boost at the global level. The changes in no way hamper the autonomy of the IIMs,” he said.

Ram Kumar Kakani, director at IIM Raipur, also finds the changes positive. “This is aimed at improving supervision and accountability, both of which are essential components of effective institutional governance,” he said.

The IIM (Amendment) Bill, 2023 was introduced in Lok Sabha on July 28, 2023.