Tricky sections likely to be dropped as HRD Ministry builds consensus over IIM Bill

NEW DELHI: The Smriti Irani-led Human Resource Development (HRD) ministry will on Friday hold a crucial meeting with IIM Directors to resolve the row over the controversial IIM Bill 2015 that proposes to grant degree granting powers to the country’s top business schools.

Highly placed sources in the ministry confirmed to ET that the Centre is likely to drop a number of controversial provisions in the draft Bill that invited considerable criticism from the IIMs—particularly the older IIMs. Aiming at taking the Bill to Parliament in the Winter Session, the HRD ministry is keen on building a consensus on a range of issues.

Top sources said the attempt will be to present a new version of the IIM Bill that is largely shaped around the IIT Act—allowing considerable intuitional autonomy with the ministry exercising its presence through representation on the Board.

The major provisions that were objected to by the IIMs were Section 3(k), Sec 35 and Sec 36 of the draft IIM Bill. All three pertain to the role and power of the Centre over IIMs. The Centre is learnt to be open to dropping all ‘irritants’ that may be there in these Sections and other sections.

One of the key areas that will see changes is Section 36 that required IIM Boards to take regulations on every other sundry issue to the Central government. Among the matter listed under the section were tenure, pay, admission and hostel fee.

“The Centre is not out for any kind of confrontation with IIMs. We want to bring in degree-granting powers with institutional autonomy, streamline processes and standardisation. IIMs have pointed to certain irritants in the draft Bill and these will go to ensure that the larger purpose is met. We have an open mind on the subject. Just like in case of IITs, the Centre will stay represented on each IIM’s Board but there is no intent to run their day-to-day affairs,” an official in the know of the proposed Bill told ET on condition of anonymity.

It is learnt that the 19 IIMs have largely agreed to the proposed new selection process for directors. Now, it is recommended that the board set up a search-cum-selection committee which will send a panel of names to the Visitor- President for approval.