No to privatisation, but favour corporate contribution: IIM-C

The Indian Institute of Management Calcutta (IIM-C) is in favour of corporate contributions, but will say no to any move for privatisation of IIMs, a senior IIM-C official said.

Updated: Apr 03, 2011, 13:52 PM IST

Kolkata: The Indian Institute of Management
Calcutta (IIM-C) is in favour of corporate contributions, but
will say no to any move for privatisation of IIMs, a senior
IIM-C official said.

"We favour corporate contribution for new IIMs as they
may not be in position to generate resources adequately at
least in the initial years. But under no circumstances we are
in favour of privatisation of the institutes. Their autonomous
status should continue," IIM-C chairman of the governing board
Ajit Balakrishnan said last evening on the sidelines of the
institute`s 46th annual convocation.

"To facilitate this, a fund can be contributed without
any benefit or right in the institute board. But corporates
must be allowed to get full tax benefit of the total
contribution," he said.

Balakrishnan said India should also allow to set off
the contribution by a corporate to any institute for a couple
of years, similar to the 5-year timeframe in US, if the total
annual profit of the company is less than the total
contribution.

"We have made presentation to Union Finance Minister
Pranab Mukherjee and he has asked to wait till the major tax
reform, Direct Tax Code, comes in place. Though so far the
draft does not speak on this, we do hope it might be included
in the final draft," he added.

The government had set up seven new IIMs across the
country to create management student capacity to support
India`s growth story for the next few decades.

PTI