The committee was setup in 2007 with the objective of looking into the functioning of IIMs and how can the rising aspirations of people be met via IIMs.
It submitted its report in 2008 and following were the observations and recommendations.
Observations
The six functioning Indian Institutes of Management (IIMs), established over different periods, have emerged as great teaching institutions and their products are in high demand in India and abroad. However the proposal to setup 6 more IIMs would create mismatch in quality, as it would be difficult to match the learning capabilities of present IIMs.
IIMs have not been able to attract enough faculties, especially in the functional areas, where there is demand from other sectors. This is largely due to poor pay. This has inhibited growth of MBA admissions.
Divided responsibility for governance, and lack of clarity of the role of Government, Boards, Chairman and the Directors has meant that none of the key players have any real accountability for results.
IIMs have not been able to expand their admission capacity for the MBA programme (PGP) adequately, to match the rapidly rising demand both from the increased rate of growth of the Indian economy and higher world demand.
Important Recommendations
Long term excellence of any institution is closely correlated to the quality of governance. Good governance requires that all involved should have clarity of roles, powers to execute the allocated tasks and accountability for results.
IIMs have been established by the Government with public funds, are perceived as public institutions and thus IIMs cannot expect to become fully independent of the Government but there must be limitation to government interventions.
To assist the Government in playing its role, it is proposed to create a Pan-IIM Board, consisting of 15 members, 5 of which will be government nominees, including the chairman who is to be nominated by Prime Minister. This Pan-IIM board would ensure coordination amongst other IIMs
An attempt should be made to induct as many IIM alumni as possible, both in the IIM Boards and the Pan-IIM Board.
To overcome the faculty shortage situation, various possibilities have been suggested, including the appointment of teachers on contract, use of technology, increasing output of PhDs, and rationalizing the fellowship programme.
IIMs should first attempt to increase annual intake for the PGP to 750. This would enable better economies of scale being achieved. Government may fund 70% of all new capex in the older IIMs. The rest should be raised by the IIMs. New IIMs would need to be fully funded by the Government.
The recommendations were considered to frame policies on higher education.
