The report is accurate in its description of the current situation at IIMs. Yes the IIMs are not in good shape on many counts, and their lack of scale is a very valid criticism. The report, in the section called “Our analysis”, says that the reason for this is that the boards of IIMs have not functioned well. Ironically, the chairman of the board whose job it is to ensure that the board functions properly is selected by the HRD ministry.  

On the issue of building scale, the report says “It may be argued that IIMs also did not have funds to build the infrastructure required for expanding capacity. However this argument would have had greater weight if well thought out proposals for expansion, and the needed funds, had been sent to the Government and had been rejected. This did not happen”. Had the committee bothered to study the minutes of board meetings and the files pending with the HRD ministry, instead of relying on the oral tradition of impressionistic interviews, it would have noticed some well thought-out proposals gathering dust there, or having been turned down. A proposal for increasing faculty strength at one of the leading IIMs lay in the ministry for a year with no response. There is a thoughtful proposal to operate overseas, earn good money, provide faculty learning, and forge research alliances, which was turned down. Till recently, the director of IIM could not travel abroad without a trip-by-trip clearance from the HRD ministry, despite approvals of annual expense budgets by the board. The faculty pay is determined by the government as well as the consulting rate and how many days of consulting that can be done. So is this a board malfunction or a deeper malaise that is evident in the health of many PSUs? Will more government-controlled governance solve this problem or make it worse? Is this situation one that motivates everyone to do their best? And is it not amazing that the IIMs even deliver the limited areas of excellence that they do, despite all this? Several other universities have dived headlong, under similar situations. 

... contd.