IIM A, B, C refuse to toe govt line

Three IIMs - Calcutta, Bangalore and Ahmedabad - have refused to sign an MoU demanding that they reduce down their reserves to Rs. 25 crore, according to sources.

A refusal to sign the MoU could entail the cutting off of government funds to the IIMs, but these institutes have the financial ability to stand on their own with money coming in through research and foreign funds.  Signing the MoU would result in increased government control over faculty and courses, as well as increase student intake.  

Three other IIMs -  Lucknow, Indore and Kozhikode  - on the other hand, have agreed to sign the MoU the government has sent.  While the three IIMs A, B and C, while have been around for over 30 years, have substantial reserves, and can therefore face the possible withdrawal of government funds, the other three IIMs don't have such a luxury.  Says a source at IIM kozh- ikode, "  The IIMs A, B and C are powerful enough to reject the MoU.  But we are smaller, and relatively new, with limited funds.  Hence, we don't really have an option other than signing, whatever the terms.  " IIM Lucknow was established in 1986, IIM Kozhikode in 1996 and IIM Indore in 1997.

Adds an IIM source, "What we are also worried about are the other things that are on the cards - the risk of extinction CAT (common admission test)  is facing right now, for example.  "According to a recent circular, the government wants the IIMs to adhere to an All India Management test, in the place of CAT.  This might lead to an elimination of the interview and Group Discussion process that the IIMs follow for admissions.  The elimination of CAT would also cut off a major source of revenue for the IIMs.  A record 1.03 lakh students appeared for CAT last year, and a CAT application form costs around Rs 1000.  According to the sources, the proposed management test, which would be applicable to all management institutes besides state - level institutes.