Govt allows IIMs to set up campus abroad

The government today gave its nod to Indian Institutes of Management (IIMs) to go global after amending their memoranda of associations (MoAs), and, in a quid pro quo, the institutes decided to enhance intake of students - a condition set by the government.

"There is absolutely no conflict between us and the government. The ministry said amend the MoA and go ahead (in setting up campuses abroad)", IIM-Bangalore director Prakash Apte told reporters after a 90-minute meeting between directors of all IIMs and HRD minister Arjun Singh today.

Describing the meeting as "productive and cordial", Apte said the minister and the ministry had always been supportive of IIMs.

Though the meeting convened by Singh was to deliberate on issues relating to autonomy and measures needed to further strengthen the prestigious B-schools, it is  understood to have focused on the ministry's denial of permission to IIM-B to set up shop in Singapore.

IIM-B's ambitious plan to open a campus in Singapore got a jolt on January 11 when the HRD ministry refused it permission, and asked it to first cater to the huge domestic demand.

From taking a policy stand that IIMs should cater to domestic demands to finding fault with their MoAs, Singh, at one point, had even said these institutions were not corporate entities.

Observing that there were certain "legal barriers" in modifying the MoAs, Apte said: "We have to get the board's approval. We have to go carefully. We hope it should be done in three to four months."

Referring to the HRD minister's observation that IIMs should first meet the domestic needs before going global, he said that B-schools continuously expand their activities by introducing new programmes.

Apte said that IIM-B proposed to increase its intake of students to 280 this year from the existing 250, and take it further to 300 in 2007.

Similarly, Shanker Chaudhury, director of IIM-Kolkata, said his institute proposes to increase its intake from the existing 270 this year to 300.