IIM Bill grants ₹80 crore to Mumbai institute for one year only

It also introduces new governance roles, such as the President of India serving as the Visitor, and changes how Directors and Board members are appointed.

Who it concerns: The Bill affects the National Institute of Industrial Engineering, Mumbai (renamed to Indian Institute of Management, Mumbai), all existing Indian Institutes of Management, their Boards of Governors, Directors, Academic Councils, and the Central Government.

What the bill does

• The National Institute of Industrial Engineering, Mumbai is renamed to Indian Institute of Management, Mumbai and all provisions of the 2017 Act apply to it.
• The President of India is designated as the Visitor of every Institute.
• The Visitor has the power to appoint persons to review the work of an Institute, hold inquiries, and issue binding directions.
• The Chairperson of the Board of Governors is to be nominated by the Visitor.
• The Central Government may constitute an interim Board for six months if the regular Board is suspended or dissolved.
• The Director is to be appointed from a panel recommended by a search-cum-selection committee, which includes a member nominated by the Visitor.
• The Director's appointment and removal require the prior approval of the Visitor.
• The Visitor may terminate the services of the Director.
• The Chairperson of the Coordination Forum is to be an eminent person nominated by the Visitor.
• Section 17 of the principal Act is omitted.
• The existing Board and Academic Council of the Mumbai Institute will continue to function until new ones are constituted under the Act.

Also in the document

• The Bill states that the Institute will receive a grant-in-aid of 80 crore rupees for one year after the amendment comes into force, after which no further grants will be provided.
• The Bill clarifies that references to the commencement of the 2017 Act for the Mumbai Institute should be construed as the commencement date of this 2023 Amendment Act.