Javadekar sidelines Smriti's views on IIMs, accepts PMO proposal
New Delhi: Weeks after Smriti Irani was given marching orders from the Human Resource Development ministry, it has accepted the suggestion of the Prime Minister Office (PMO) to dilute powers of the government in appointment of the Chairman of the Board of Governors (BoG) thereby agreeing to the changes made in the proposed Indian Institute of Management (IIM) bill.
Prakash Javadekar, the successor of Ms Irani as HRD Minister has accepted to empower the IIMs under the IIM Bill to appoint their own chairmen. The draft law was recently dispatched for cabinet approval.
By doing so, Javadekar also eased the tension between HRD Ministry and PMO over provisions of the IIM bill which empowers the premier management’s institutes more while the government agrees to relinquish some of its powers.
The issue had reached a flash point when the then HRD Minister Smiriti Irani had turned down, without providing any reason, the shortlist sent by IIM Ahmadabad to appoint its new Chairman of BoG after resignation of A M Naik. The IIM-A had shortlisted R Seshasayee, Chairman of Board of Directors of Infosys, Deepak Parekh, chairman of HDFC and Hero MotoCorp CMD Pawan Munjal among whom, the Chairman was to be finalised.
In the earlier draft bill, the central government had the powers to appoint Chairman of BoG while the authority of business schools remained curtailed. According to official sources, the PMO was not happy with the provisions of the bill and wanted IIMs to enjoy more powers.
The fresh bill draft had been sent for the cabinet approval after Javadekar took over as the HRD Minister.