Govt Restricts IIM's Expansion Plans

The HRD ministry did not allow the IIMs to setup a B-school in Singapore. Why? The government wants them to expand in India first. And look at what this NDTV report uncovers:

But IIM Ahmedabad has been trying to open a centre in Navi Mumbai for the last five years and has yet to get permission from the Maharashtra government.
They were told that the permission would be granted only if it reserved 12 per cent of its seats for Maharashtrians.  And according to sources, IIM-A was denied the 25 acres of land after they refused to reserve seats.

This report also uncovers how state governments like Gujarat do not co-operate with IIMs. I don't know why the government throws the spanner in the works of IIMs' expansion plans. You know, we all feel proud when a stupid Bollywood flick is sent for the Oscars nominations. We beat our chests and holler about how Mumbai is the 'Manchester of India' and Pune is the 'Oxford of India'. We have been such suckers for anything 'foreign' but suddenly when one of our own institutes wants to plant our flag in foreign lands, well, we become super-patriots. When they do try to expand, the Maharashtra government wants 12% reservation for Maharashtrians. On the other hand, state governments boast about how they offer tax holidays and infrastructure support for IT companies. Why? Because they rake in the dollars. We are okay with it, for money is money, foreign or not.
What's hilarious is that former HRD minister, who had tried to stifle IIMs and IITs during his tenure, is backing the current minister's decision:

Strongly defending Arjun Singh's decision of disallowing IIM-B to open a campus in Singapore, Joshi said "Indian tax payer's money should be first used for the country. I had tried to bring down IIM fees but some people protested. I am happy with the government's new decision."
Echoing the Central government view that IIMs should be catering to the requirements of the country before they try to set foot elsewhere, Joshi said: "India needs good managers in all fields. Our electricity, water supply, health, education, everything is mismanaged. Therefore, the IIMs must focus on these areas of social relevance first."

Everything is mismanaged? Why didn't I think of that before? Maybe the honorable former minister's passion, patriotism, and angst clouded his logical thinking ability. They are mismanaged because the government runs them. Now tell me, why should the government interfere with IIMs?
Tax payer's money? Only 2% of the population pays personal income tax. I don't get it. Or in other words, 2% are screwed for the benefit of the rest. I'd like to know how much money I contribute to the IIMs' functioning, as opposed to the money our Parliament spent on discussing Saurav Ganguly's place in the Indian Cricket team. Or the money our ministers spend on government bungalows, cars, security...  Who are you kidding?

In Pakistan, you need to earn in excess of $15,000 to qualify for the top rate of 35%... [Via BBC]

The IIMs have managed, despite hurdles from the government, to establish a platform that creates world class managers and leaders (and some condescending bloggers; that's fine I can live with that). The government should not have any say in what the IIMs want to do; like it can't and shouldn't interfere in private sector hiring. If the government does not relent and do away with these populist ideas, it will have a disastrous effect on the overall growth of the country. I can already foresee an exodus of quality professionals to foreign shores.

Update: Vasu, our own closet-communist, has shot his mouth off, in one of those moments where anger nullifies reason and rhetoric blinds you to facts. Here is my response to Vasu:

"If IIMs have not done much than just branch out to 6 institutes in the last 55 years, what is the gaurentee that they would do so now."

Pal, welcome back to earth. If you read my post, you'll understand why your statement is vain.

Do we have to risk public funds by investing it elsewhere?

Do you know how many PSUs are running in losses and did you know that our money goes there too? Anyway check facts. I don't think IIMs run on public funds. Correct me if I am wrong.

The IIM managmeent simply has no intention of doing this as they are protectors of the holy grail in education called merit and quality even conviniently ignoring the constitutional mandate to the state and state institutions to provide education as a matter of right and not as a matter of award.

Education as a right is meant for elementary education for children upto 14 years of age. Again, check your facts. Of course, correct me if I am wrong.

...ensure 69% reservations are implemented in these institutes including management.

Caste-based reservation in professional education, hmmm. Do you really believe what you wrote Vasu? Or at least pass me the stuff you are on man. It ought to be darn good.

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