In spite of clarifying in the Rajya Sabha that it is committed to protecting the autonomy of the IIMs, the HRD ministry's statement about examining the possibility of formulating a legislation for the Indian Institutes of Management (IIMs) on the lines of Institute of Technology Act, 1961, has re-ignited the debate on the autonomy issue in the IIM circles once again.

While it is not clear which attributes of the IIT Act of 1961 could be incorporated while formulating the legislation for the IIMs, those close to the development say that the Act could primarily focus on the role of the 'Senate' or the group of faculty members who work closely with the Board of governors consisting usually of 12 members and the chairman, who make policy decisions for the IITs.

The Act is also expected to enable the IIMs to offer degrees instead of the diplomas awarded by them, but this hasn't interested officials from the IIMs.

"Any legislation for the IIMs mean that they would be answerable to the parliament and any such scrutiny is bound to affect the autonomy. As it is, under the IIT and IIM model, salary structure or recruitment of faculty, which are the most important issues, are decided only from the HRD ministry. In spite of the HRD's assurance on retaining autonomy, it doesn't look like an IIM Act could leave much flexibility," said a senior IIM Ahmedabad official.

A professor from one of the IIMs opined that the provision of offering degrees instead of diplomas was hardly relevant.

"We have debated the issue of degrees in the meetings at the IIMs many times and majority believe that after decades of being recognised as the best management institutes in the country, it hardly matters whether we offer a degree or a diploma."

Speaking about the IIT Act, an official from IIT Kharagpur said that the IIT Act has been time-tested and gives flexibility for an IIT to take its own decisions under the framework of the government.

"The Act enables fast mechanism of policy decisions, as the government's role is limited to the framework it has already prepared. For example, the government's formula for faculty-student ratio in the IITs could be around 1:9 or 1:11, but the appointment of a faculty member is held through the IIT's own scrutiny committee," said the official.

Another aspect that could be a bone of contention with the IIMs is the issue of funding. The IIT Act mentions specifically that the Central Government may, after due appropriation made by Parliament by law in this behalf, pay to each Institute, in each financial year, such sums of money and in such manner as it may think fit.

However, IIM officials say that they do not see the need for any legislature even at the possibility of getting more fund since the IIMs at Ahmedabad, Bangalore and Calcutta have been self-sufficient in the last few years.

However, the Act could bring about 'cosmetic benefits' said another IIM professor who believes that the Act could lessen the paperwork of having to inform the government while travelling abroad every time and other small decisions which could be undertaken by the IIM directors themselves.

The HRD ministry has also said that it has set up a review committee on the IIMs and one of the terms of reference for the panel is to look at expansion plans of the institutes during the next decade, and particularly during the XIth Plan, with a view to optimal utilisation of the existing capacities.