After IIMs, Private B-Schools to now get more authority by Government

Rajat updated on : 10 Aug 2017

IIM Bill 2017 under process of becoming an act. In the meanwhile, Government plans to provide more autonomy to private B-Schools also. Read more on this here.

AICTE and IIM Bill 2017

With IIM Bill 2017 in the process of becoming an Act, the government is now also paying heed to the private B-schools. As per the reports coming in, the private Management Institutes of the country are expected to be given more liberty to operate and function on their own with less government intervention. Till now, the same was being considered only for the Indian Institute of Management (IIMs) but with lakhs of students opting to study at private B-schools, the government now plans to increase their autonomy.

IIM Bill 2017

As per the IIM bill, all 20 IIMs will be granted more administrative power, financial and academic autonomy. Now it has been said that the central government is supposed to provide these facilities to other top B – schools of the country as well. The bill is under great debate.

A committee has been formed by the apex technical regulator, AICTE to identify the areas where these institutions can be provided these facilities. This committee will comprise of two IIM Directors and the dean of XLRI, Jamshedpur. Another government official without revealing his identity stated, “Freedom from excessive government control – partial or full – will be discussed and a formula will be thrashed out of such institutions.” He further added that MHRD believes that there shouldn’t be too much regulatory scrutiny on the good institutions, while government and private education institutions are objecting the involvement of UGC and AICTE.

Once the IIM 2017 bill will become law, all the 20 IIMs will be able to grant degrees such as PhD and MBA to their students instead of PG diplomas in management, as the bill is going to grant more power and autonomy to these institutes so that they can function independently. The private B – schools are concerned about this situation, thinking that international partners, students and recruiters will consider their management programs as second – rung.  

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Talking about granting more liberty to the private Management Colleges, Debashish Chatterjee, Director General of International Management Institute (IMI) New Delhi, has said, “The impact of the IIM law will be sharp and deep on PGDM schools. We look forward to AICTE and its panel to come up with concrete action plan for the autonomy to top PGDM schools.” He further added, “PGDM schools are facing troubles under AICTE oversight. They have to take permission from AICTE for many tasks such as increase in batch size, in any foreign collaboration etc. And they are required to pay to the regulators if they have to start any PhD programs.”

Director of Birla Institute of Management Technology, Harivansh Chaturvedi also commented on the situation. He said, “We have told the ministry and AICTE that they need to allow freedom to us to function with certain accountability. We have told that that instead of a law for just IIMs, there should be a broader law on management education like the one that governs medical education.” Mr. Chaturvedi also stated that the committee of academicians which AICTE has formed is supposed to be dividing the private B – schools in three tiers, and the top B – schools will be given academic and financial autonomy.

According to him, policymakers aren’t paying enough attention towards management education, and many of the decisions are taken haphazardly. He targeted IIM Bill as such decision saying that the present draft of IIM Bill 2017 was much better that the original version as the draft does justice to the IIM faculties, alumni and students.

In words of Director of Fore School, JK Das, “IIMs and other government B – schools cater not more than 15% of total management students.” He also said that many of these top institutions aren’t as good as top PGDM schools in the country. According to him, the circular which was issued by AICTE in 2010 should be withdrawn as it tried supervising every activity of B – schools which included admission process, admission fee and other curriculum. At present the circular is in Supreme Court as B – schools challenged this circular.

Around 500 private B – schools have been reported to approach Parliamentary Standing Committee. These B – schools are concerned about losing their market value of PGDM. Union Cabinet and Lok Sabha has passed the IIM Bill 2017 on July 28, which aims at granting complete power to all the IIMs in the country and enabling them to confer degrees to their students instead of post graduate diplomas in management. The bill is awaited to be presented in Rajya Sabha and in the meanwhile, the private B – schools have raised the issue of their autonomy in the Supreme Court.

This month, a letter has been submitted to the joint secretary and MHRD under the Education Promotion Society of India (EPSI), which highlighted this concern of the B – Schools. For the past 68 years, there has been parity between the private, semi private B-schools and IIMs. After the IIM Bill comes into force, the private B – schools which offer PGDM course may lose their level – playing field. Some private B – schools are also concerned that the students, universities and recruitment companies may question the credibility of the diploma courses which they are providing.

Top private B – schools such as SP Jain Institute of Management and Research Mumbai (SPJIMR), XLRI Jamshedpur, Institute of Management Technology Ghaziabad and Birla Institute of Technology Management Greater Noida are further reported to be making a presentation before the HRD Minister, Mr. Prakash Javadekar, where they will put forward their demand of setting up a Council for Management Education and National Management University as the statutory bodies. 

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