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The Indian Institute of Management Act, 2017 ( IAST: ) is an Indian legislation. The Act declared the
Indian Institutes of Management The Indian Institutes of Management (IIMs) are central government-owned-public business schools for management offering undergraduate, postgraduate, doctoral and executive programmes along with some additional courses in the field of busines ...
as institutions of national importance and enabled them to offer degrees and further make substantial changes in their administration.


Premise

The
bill Bill(s) may refer to: Common meanings * Banknote, paper cash (especially in the United States) * Bill (law), a proposed law put before a legislature * Invoice, commercial document issued by a seller to a buyer * Bill, a bird or animal's beak Plac ...
was approved by the
Union Cabinet The Union Council of Ministers Article 58 of the ''Constitution of India'' is the principal executive organ of the Government of India, which is responsible for being the senior decision making body of the executive branch. It is chaired by t ...
on 24January 2017. The Act was introduced as a bill in
Lok Sabha The Lok Sabha, constitutionally the House of the People, is the lower house of India's bicameral Parliament, with the upper house being the Rajya Sabha. Members of the Lok Sabha are elected by an adult universal suffrage and a first-p ...
by the
Minister of Human Resource Development The Minister of Education, formerly the Minister of Human Resources Development (1985-2020), is the head of the Ministry of Education An education ministry is a national or subnational government agency politically responsible for education. ...
,
Prakash Javadekar Prakash Keshav Javadekar (born 30 January 1951) is an Indian politician. He is a member of the Bharatiya Janata Party (BJP) and served as the Minister of Environment, Forest and Climate Change from 30 May 2019 till 7 July 2021. Javadekar was ...
, on 9February 2017. The bill was passed by the
Lok Sabha The Lok Sabha, constitutionally the House of the People, is the lower house of India's bicameral Parliament, with the upper house being the Rajya Sabha. Members of the Lok Sabha are elected by an adult universal suffrage and a first-p ...
on 28July 2017, and by the
Rajya Sabha The Rajya Sabha, constitutionally the Council of States, is the upper house of the bicameral Parliament of India. , it has a maximum membership of 245, of which 233 are elected by the legislatures of the states and union territories using si ...
on 19December 2017. After receiving the President's assent, the bill became an Act on 31December 2017.


Provisions

The Act declares
Indian Institutes of Management The Indian Institutes of Management (IIMs) are central government-owned-public business schools for management offering undergraduate, postgraduate, doctoral and executive programmes along with some additional courses in the field of busines ...
as institutions of national importance and grants them the power to give degrees.


Board of governors

The Act provides for the creation of a boards of governors, which would act as the principal executive body for each IIM, and would appoint onedirector for each IIM, whose pay is 225,000 in seventh pay commission but who is entitled to a variable pay. The board of governors would have a maximum of nineteenmembers including onechairperson of the board; a nominee each from central and
state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, United States * ''Our S ...
governments; twomembers of the faculty; foureminent personalities from fields including education and industry, oneof whom has to be a woman, and; the director of the institute.


Academic council

The Act provides for the creation of an academic council for each IIM, which is the principal academic body under the act and which would decide the: (a) academic content; (b) criteria and processes for admissions to course; and (c) guidelines for conduct of examinations. The academic council would comprise: (a) the director; (b) deans in charge of academics, research, student affairs and other such functions of the institute; (c) chairs and coordinators of various areas, programmes, faculties, centres, departments and schools of the institute; (d) all full-time faculty members at the level of professor and; (e) members, by invitation of the board — on the recommendation of the director — who are eminent in the fields of industry, finance, management, academics and public administration.


Coordination forum

The Act provides for the creation of a coordination forum, which would discuss matters pertaining to all IIMs. The coordination forum would comprise: (a) Higher Education Secretary (''
ex-officio An ''ex officio'' member is a member of a body (notably a board, committee, council) who is part of it by virtue of holding another office. The term '' ex officio'' is Latin, meaning literally 'from the office', and the sense intended is 'by right ...
''); (b) twosecretaries in charge of management education of state governments in which the institutes are located, by rotation, each year (''
ex-officio An ''ex officio'' member is a member of a body (notably a board, committee, council) who is part of it by virtue of holding another office. The term '' ex officio'' is Latin, meaning literally 'from the office', and the sense intended is 'by right ...
''); (c) fourchairpersons of institutes, to be nominated by the chairperson of the coordination forum, by rotation for twoyears; (d) the director of each institute (''
ex-officio An ''ex officio'' member is a member of a body (notably a board, committee, council) who is part of it by virtue of holding another office. The term '' ex officio'' is Latin, meaning literally 'from the office', and the sense intended is 'by right ...
''); (d) fiveeminent personalities—of whom onehas to be of a woman—in the fields of academia and public service. The bill also proposes to incorporate many other changes like audit of institutes by the
Comptroller and Auditor General of India The Comptroller and Auditor General of India is the supreme audit institution of India, established under Article 148 of the Constitution of India. They are empowered to audit all receipts and expenditure of the Government of India and the ...
.


Aftermath

Even after the commencement of the Act, not all IIMs granted degrees in the first year of its commencement.
IIM Lucknow The Indian Institutes of Management (IIMs) are central government-owned-public business schools for management offering undergraduate, postgraduate, doctoral and executive programmes along with some additional courses in the field of bus ...
, IIM Ranchi, IIM Rohtak and
IIM Ahmedabad Indian Institute of Management Ahmedabad (IIM Ahmedabad) is the world's number 1 business school, located in Ahmedabad, Gujarat, India. The school has been accorded the status of an Institute of National Importance by Ministry of Human Resourc ...
granted postgraduate diplomas, whereas
IIM Bangalore The Indian Institutes of Management (IIMs) are central government-owned-public business schools for management offering undergraduate, postgraduate, doctoral and executive programmes along with some additional courses in the field of busines ...
,
IIM Calcutta Indian Institute of Management Calcutta (IIM Calcutta or IIM-C) is a public business school located in Joka, Kolkata, West Bengal, India. It was the first Indian Institute of Management to be established, and has been recognized as an Institu ...
, IIM Indore, IIM Udaipur, IIM Visakhapatnam granted degrees. In March 2018, IIMs were told at a meeting with HRD ministry that the Act only empowered them to grant degrees for courses with duration of twoyears or more. Further, the ministry told the institutes that, for them to confer degrees not mentioned in the
University Grants Commission Act, 1956 The University Grants Commission Act, 1956 is an Act of the Parliament of India The Parliament of India ( IAST: ) is the supreme legislative body of the Republic of India. It is a bicameral legislature composed of the president of Ind ...
, the institutes would have to seek the government's permission. IIMs were also asked to chalk up their action plan and outline their long term strategy.


References

{{Indian Institutes of Management Acts of the Parliament of India 2017 Act