NEW DELHI:Students passing out of the Indian Institutes of Management (IIMs) will get degree certificates instead of diplomas from now. The Union Cabinet on Tuesday cleared the Indian Institutes of Management (IIM) Bill, 2017 which would allow the premier management institutes to offer degrees to students instead of diploma certificates. Besides, the elite B-schools would have complete autonomy.
The demand to offer degrees instead of diplomas has been long pending. This was technically putting graduates from theseB-schoolss behind many university and colleges which give Masters in Business Administration (MBA) certificates.
"Being societies, IIMs are not authorized to award degrees and, hence, they have been awarding post-graduate diplomas and fellowships in management. While these awards are treated as equivalent to MBAs and Ph.Ds respectively, the equivalence is not universally acceptable, especially the fellowship programme," the statement said.
The IIM Bill, which has been under discussion for over four years, will also grant the premier management schools autonomy in terms of administration, recruitment and daily functioning.
With more autonomy, it will also ensure that neither the Ministry of Human Resources Development (MHRD) nor the president will have a say in the selection of top executives of these schools.
The IIM Bill is expected to be brought before Parliament for its approval in the upcoming Budget session which begins from February 1.
The Bill had become controversial over fears that it would erode the autonomy of premier institutions. However, following an intervention by the Prime Minister’s Office (PMO), MHRD made changes to the draft, accommodating most of the demands of the schools.
The IIMs will also be declared as Institutions of National Importance.
"The IIM Bill focuses on complete autonomy, effective administration, more alumni participation and many other areas," Prime Minister Modi tweeted shortly after the Cabinet’s decision today.
Human resources development minister Prakash Javadekar also tweeted that the decision is a "historic one" which gives IIMs real autonomy and power to grant degrees.
In an official statement, the government said the management of IIMs would be board driven, with the chairperson and director selected by a board of governors (BoGs).
Provision has also been made for inclusion of women and members from the Scheduled Castes and Scheduled Tribes in the board, the statement added.
It is learnt that a provision making the President of India the Visitor of these institutions was dropped and more powers were given to the boards.
"The Bill also provides for periodic review of the performance of institutions by independent agencies, and placing the results of the same in the public domain," the statement said.
“The annual report of the institutions will be placed in Parliament and CAG will be auditing their accounts," the statement said. Presently all IIMs are separate autonomous bodies registered under the Societies Act.