IIM Sirmaur Director Prafulla Y Agnihotri Shares Insights on IIM Act 2023

New Delhi: The Indian Institutes of Management (Amendment) Act 2023 has faced criticism for expanding the government's role in the operations of IIMs. However, Prafulla Y Agnihotri, the Director of the second-generation IIM Sirmaur, expressed that there is a general consensus on the policy. He expects minimal changes on the ground. 

Having assumed the directorship IIM Sirmaur in 2022, Agnihotri, formerly a professor of strategy and marketing at IIM Calcutta and the founding director of IIM Tiruchirappalli, shared his views on policy, government funding, rankings, and outlined his plans for IIM Sirmaur.

In response to inquiries about the revised IIM Act, which grants the union government a more prominent role in IIM operations, Director Agnihotri explained that the amendment introduces a Visitor role, akin to the chancellor in the IITs. Contrasting this, IIM Sirmaur previously had a chairman of the Board of Governors. 

Details About the IIM Amendment Act 2023

With the amendment in effect, the institute will maintain the Board of Governors structure, with the Visitor now serving as the chancellor within the board. The director of the institute will be a nominee of the chancellor, newly incorporated into the selection panel. Earlier, a four-member panel, led by the chairman, carried out the selection process.

The Director from the IIM Sirmaur Faculty said that before the introduction of the amendment, an informal discussion was conducted with the IIMs, where the concept was presented, and their opinions were solicited. The majority of participants in the meeting expressed agreement with the proposed amendment. Following this, the discussion shifted towards specific areas of interest for each IIM, including funding issues.

Further, the absence of any concerns raised by any IIMs thus far indicates that the amendment has not significantly impacted the functioning of the institutes. Had it posed substantial challenges, especially for the top three IIMs, there would likely have been widespread objection. The fact that no such concerns have been raised suggests that the day-to-day operations of the IIMs remain largely unaffected.

When questioned about the potential impact of the amendment on the autonomy of IIMs, given the arguments by critics favoring independent boards for B-school governance, the director explained that when he assumed the directorship at IIM Trichy Faculty in 2011, there was no board, and significant decisions were made by the ministry. 

Even in the case of older IIMs, director appointments were made and eventually ratified by the ministry. Some critics contended that this method of appointment was flawed. While he refrained from naming specific instances, the director acknowledged that in a couple of cases, the appointment of a director was entirely inappropriate. 

The influence of the government's nominee, represented by the President of India as the Visitor, will be noticeable primarily during the appointment of directors, occurring once or twice. The day-to-day operations and significant decision-making within the institute will continue to be under the view of the directors. It's essential to acknowledge that the government of India plays a crucial role as one of the key stakeholders in the establishment of IIMs. 

Given the cutting off of the budget allocated for IIMs in the current financial year and its potential impact on newer institutions like IIM Sirmaur, the director clarified that they are no longer reliant on government funding. The past year marked the final year of funding, and henceforth, the institute is financially independent. IIMs were informed in advance that funding would be sustained for a specific period, followed by discontinuation, affording ample time for preparation. 

He mentioned that at IIM Sirmaur, they possess a corpus exceeding INR 100 crore, and the goal is to sustain the institute using the interest generated from that corpus. He expressed that while having government funding would have granted them the freedom to spend without hesitation, particularly on beneficial initiatives like faculty development, he has the desire to send young faculty members to Harvard University for a 15-day faculty development program. 

Adding that he accomplished this at IIM Trichy, where a significant portion of the faculty received training at Harvard or other esteemed institutions, due to the support received from the government. He said that any support from the government is always appreciated.

In response to inquiries about how the new IIMs are generating revenue and whether it has implications for research funding, class sizes, or student fees, Director Agnihotri explained that there are various avenues for revenue generation. For instance, when faculty members engage in management development programs, a portion of the revenue is shared with the institute. 

Additionally, several teachers at IIM Sirmaur are involved in industry-led projects, providing solutions to companies that have employed them. The institute also explores public-private partnerships; for instance, in the construction of new hostels and corporate centers, collaborations with different companies have been pursued, resulting in significant cost savings, he added. 

There has been no impact as such. In fact, there was a meeting with the board on August 22 where a proposal to set up a center for healthcare management was approved, of which, it will be funded by some of the pharmaceutical companies located close to our campus. The center will focus on healthcare research and consulting. It will broadly focus on healthcare management. It will also offer specialized courses. 

Further, the institute would need a hospital to offer hands-on experience for which they are planning a collaboration with one of the AlIMS.

When questioned about whether IIM Sirmaur envisions following the path of IITs in establishing offshore campuses, the director expressed his opinion that the older IIMs should embark on establishing overseas campuses. He mentioned advocating for this idea for several years, and highlighted that it is time for IIMs to initiate their campuses abroad to assert themselves as premier providers of management education. 

Although he acknowledged that IIMs are still relatively young compared to renowned international management schools, he emphasized the importance of positioning them as a compelling destination after the US, Europe, and Australia. Regarding IIM Sirmaur, he indicated that this might not occur in the near future, but the institute is actively engaged in collaborations with foreign institutions to offer dual-degree programs.

Regarding the IIM Sirmaur Ranking Trends

Addressing the decline in IIM Sirmaur's ranking from 69th to 98th position among management institutes in the NIRF Rankings this year, Director Agnihotri explained that the current ranking reflects the year 2021-22, a period when enrollment had to be increased, resulting in a doubling of the batch size. 

He pointed out that NIRF rankings give significant weight to the student-teacher ratio, and that year witnessed some faculty resignations, impacting the rankings. Moreover, during the pandemic, spending on library resources decreased. 

Despite these challenges, improvements were noted in areas such as student experience, industry connections, and placements. Efforts are underway to enhance faculty quality, with 23 new faculty members recruited since he joined last year, and plans for the addition of an international faculty member soon, he added. 

Regarding the increased enrollment of women in the institute's 2023-25 PGP batch, which now stands at 39 percent, the director highlighted this change to the fact that female candidates, in addition to seeking a quality education, prioritize a secure environment, which the institute provides.

He underscored that Paonta Sahib (Sirmaur, Himachal Pradesh), where the campus is situated, is exceptionally safe, being located in the foothills of the Himalayas. The director highlighted the humility and hospitality of the local Himachali people as factors that attract women to the campus.

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