In an important battle with Centre for autonomy, IIM Ahmedabad has emerged as a winner. The HRD minister, Kapil Sibal, has approved for amendment in the institution's Memorandum of Association (MOA) with the government. The Indian Institute of Management (IIM)-Ahmedabad is now out of government's hold and can take decisions independently.
The new amendments will limit the government's role in selection of IIM-A directors. The selection board from now onwards will shortlist three candidates, while the government can only pick one from those names. Prior to this amendment, government used to constitute a search-cum-selection committee that used to shortlist the candidate's name.
Besides this, the new amendment will allow IIM to purchase and sell assets without seeking the government's approval. The HRD Ministry has also permitted a proposal to increase the revenue generated for the IIM through membership of its sponsoring society. The IIM can now charge hefty donations in exchange for membership of the society. However, it raised concern that some people might enjoy influence over the board of governors by buying society membership. Kapil Sibal had then asked IIM to put the proposal on hold.
The IIM later was successful in convincing the government that only two nominees of the society are members of the board, and the industrialists or individuals joining the society won't be in a position to influence key decisions.
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