The Indian Institutes of Management (IIMs), the top business schools of the country, will have the freedom to open new centres in and outside India, HRD Minister Kapil Sibal said today.
Chairing a meeting of chairpersons and directors of IIMs here, Sibal said it was part of the government's efforts to provide autonomy to the institutions.
The Memorandum of Association which governs the functioning of IIMs will be amended soon to allow them to open new centres.
It was decided that the number of Board Members of IIMs would be reduced to 14 from the present 25.
In another major decision, it was also decided, in principle, that Directors of IIMs will be appointed through a process wherein the Board of Governors of IIMs would suggest a panel of three names to the government, from which one will be selected.
Other decisions taken at the meeting include full powers to the Boards of IIMs to create posts within the approved norms, amend rules of the IIM within the framework of Memorandum of Association and Rules, power to acquire and dispose of property not fully or partially funded by the Ministry of HRD, powers to approve their own budget and also to manage the funds generated by IIMs on their own, official sources said here.
In a word of caution, he said autonomy should go hand in hand with accountability and in that the faculty, the Director and the Board should take steps to prepare annual action plans and key performance indicators at each level and be fully accountable and transparent.
The meeting also considered the reports of Committees constituted in the last meeting in Bangalore on certain key issues. Discussions were held on the report of the Committee constituted to recommend a new governance structure for IIMs.
It also discussed the composition and selection of the Boards of governors with adequate membership to the society of the IIM, the government, the faculty and the alumni.
