The Bill has seen IIMs and the human resource development ministry lock horns under the previous UPA regime as well as the present government over a number of provisions pertaining to institutional autonomy, the government’s role and the influence of the overarching IIM Council. A reworked Bill offering a much-liberalized framework for the IIMs has now been approved. 

The HRD ministry, after much resistance, has dropped the provision on the role of the Visitor—the President of India—in the IIMs. Instead, provisions have been created for ‘periodic review of the performance of Institutions by independent agencies and placing the results of the same on public domain’ besides provision for a CAG audit of their annual reports. 

The overarching IIM Council has been replaced with a 'coordination forum' that is more an 'advisory body'. The Bill proposes a 15-member board of governors for each IIM, in which the HRD ministry and state government will have representation and a 30-member strong IIM co-ordination forum. 

Pitching for ‘complete autonomy to the Institutions’, the government has said that the management of these Institutions would be board driven and both the chairperson and director of an Institution will be selected by the board.The prime minister’s twitter handles too described the Cabinet approval as a step towards ‘complete autonomy, effective administration, more alumni participation” at IIMs.