Rajya Sabha Secretariat, New DelhiDecember, 2013/Agrahayana, 1935 (Saka)

PARLIAMENT OF INDIA

DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE

RAJYA SABHA

ON HUMAN RESOURCE DEVELOPMENT

TWO HUNDRED SIXTIETH REPORT

REPORT NO.

260

The Indian Institutes of Information Technology Bill, 2013

(Presented to the Rajya Sabha on 13th December, 2013)(Laid on the Table of Lok Sabha on 13th December, 2013)

Website: http://rajyasabha.nic.inE-mail: rsc-hrd@sansad.nic.in

PARLIAMENT OF INDIARAJYA SABHA

DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEEON HUMAN RESOURCE DEVELOPMENT

TWO HUNDRED SIXTIETH REPORT

The Indian Institutes of InformationTechnology Bill, 2013

(Presented to the Rajya Sabha on 13th December, 2013)(Laid on the Table of Lok Sabha on 13th December, 2013)

Rajya Sabha Secretariat, New DelhiDecember, 2013/Agrahayana, 1935 (Saka)

Hindi version of this publication is also available

CONTENTS

PAGES

1. COMPOSITION OF THE COMMITTEE ......................................................................................... (i)-(ii)

2. PREFACE .................................................................................................................................. (iii)

3. ABBREVIATIONS ....................................................................................................................... (iv)

4. REPORT .................................................................................................................................. 1—17

5. NOTE OF DISSENT .................................................................................................................. 18—20

6. OBSERVATIONS/RECOMMENDATIONS OF THE COMMITTEE — AT A GLANCE ......................... 21—27

7. MINUTES ................................................................................................................................. 29—37

8. ANNEXURES ............................................................................................................................. 39—91

COMPOSITION OF THE COMMITTEE(Constituted w.e.f. 31st August, 2013)

1. Shri Birender Singh — Chairman

RAJYA SABHA

2. Shri A.W. Rabi Bernard

3. Shri Avinash Rai Khanna

4. Shri Rama Chandra Khuntia

5. Dr. Bhalchandra Mungekar

6. Shri Derek O’ Brien

7. Shri Baishnab Parida

8. Chaudhary Munavver Saleem

9. Shri Tarun Vijay

10. Dr. Janardhan Waghmare

LOK SABHA

11. Shri Suresh Angadi

12. Shri P.K. Biju

13. Shri Jeetendra Singh Bundela

14. Shri Sivasami C.

15. Shrimati Helen Davidson

16. Dr. Charles Dias

17. Shri Kapil Muni Karwariya

18. Shri Virender Kashyap

19. Shri Mahadev Singh Khandela

20. Shri N. Peethambara Kurup

21. Shri Prasanta Kumar Majumdar

22. Shri Raghuvir Singh Meena

23. Capt. Jai Naraian Prasad Nishad

24. Shri M.K. Raghavan

25. Shri K. Chandrashekar Rao

26. Shri M.I. Shanavas

27. Shri Balkrishna K. Shukla

28. Shri Bhoopendra Singh

29. Shri Kunwar Rewati Raman Singh

30. Ms. Ramya Divya Spandana

31. Shri Manicka Tagore

(i)

(ii)

SECRETARIAT

Shrimati Vandana Garg, Additional Secretary

Shri N.S. Walia, Director

Shri Arun Sharma, Joint Director

Shrimati Himanshi Arya, Assistant Director

Shrimati Harshita Shankar, Assistant Director

(iii)

PREFACE

I, the Chairman of the Department-related Parliamentary Standing Committee on HumanResource Development, having been authorized by the Committee, present this Two Hundred andsixtieth Report of the Committee on the Indian Institutes of Information Technology Bill, 2013.*

2. The Indian Institutes of Information Technology Bill, 2013 was introduced in the Lok Sabhaon 18th March, 2013. In pursuance of Rule 270 relating to the Department-related ParliamentaryStanding Committees, the Chairman, Rajya Sabha in consultation with Speaker, Lok Sabha referred **

the Bill to the Committee on 17th May, 2013 for examination and report.

3. The Bill seeks to establish twenty new IIITs and also declare the existing four IndianInstitutes of Information Technology as Institutions of National Importance. The Bill being a majorpolicy initiative in the field of Information Technology the Committee decided to issue a PressRelease for eliciting wider public opinion on the Bill. The Committee held extensive deliberationswith the Secretary, Department of Higher Education and other stakeholders.

4. The Committee considered the Bill in four sittings held on 1st and 10th October, 5th and12th December, 2013.

5. The Committee, while drafting the report, relied on the following:–

(i) Background Note on the Bill received from the Department of Higher Education;

(ii) Detailed clause by clause note on various provisions of the Bill;

(iii) Status Note on the four centrally-funded IIITs;

(iv) Details of consultation with all stakeholders including State Governments;

(v) Verbatim record of the oral evidence taken on the Bill; and

(vi) Presentation made and clarification given by the Secretary, Department of HigherEducation.

6. The Committee considered its Draft Report on the Bill and adopted the same in its meetingheld on 12th December, 2013.

7. One Note of dissent given by Shri P.K Biju is appended to the Report.

8. For facility of reference, observations and recommendations of the Committee have beenprinted in bold letters at the end of the report.

New Delhi; BIRENDER SINGHDecember 12, 2013 Chairman,Agrahayana 21, 1935 (Saka) Department-related Parliamentary

Standing Committee on Human Resource Development.

* Published in Gazette of India Extraordinary Part-II Section 2 dated the 18th March, 2013.** Rajya Sabha Parliamentary Bulletin Part-II No. 50901 dated the 17th May, 2013.

ABBREVIATIONS

IIIT : Indian Institutes of Information Technology

ESDM : Electronics System Design and Manufacturing

ONGC : Oil and Natural Gas Corporation

NEEPCO : North Eastern Electric Power Corporation Limited

HSIDC : Haryana State Industrial Development Corporation

TCS : Tata Consultancy Services

N-PPPP : Not-for-Profit Public Private Partnership

NASSCOM : National Association of Software and Service Companies

UGC : University Grants Commission

AICTE : All India Council of Technical Education

NIT : National Institutes of Technology

IIM : Indian Institutes of Management

IIT : Indian Institutes of Technology

DPR : Detailed Project Report

SEZ : Special Economic Zone

(iv)

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REPORT

I. INTRODUCTION

1.1 The Indian Institutes of Information Technology Bill, 2013 was referred to the Department-related Parliamentary Standing Committee on Human Resource Development by the Hon’bleChairman, Rajya Sabha on 17 May, 2013 for examination and report.

1.2 The Indian Institutes of Information Technology Bill, 2013 seeks to incorporate the existingfour Indian Institutes of Information Technology (IIITs) at Allahabad, Gwalior, Jabalpur andKancheepuram under the Indian Institutes of Information Technology Act so as to provide themindependent statutory status and to declare them as Institutions of National Importance. The Billfurther seeks to establish twenty new Indian Institutes of Information Technology in Public-Private-Partnership (PPP) mode and also incorporate them as Institutions of National Importance under theAct.

1.3 The Statement of Objects and Reasons to the Bill reads as follows:–

“At present, there are four Indian Institutes of Information Technology established by theCentral Government under the Societies Registration Act, 1860 at Gwalior, Allahabad,Jabalpur and Kancheepuram. To meet the challenges of the Indian Information Technologyindustry, the Ministry of Human Resource Development intends to establish twenty newIndian Institutes of Information Technology on Public Private Partnership (PPP) basis. Thepartners in setting up the Indian Institutes of Information Technology would be the Ministryof Human Resource Development, the concerned State Government where such IndianInstitute of Information Technology will be established and the industry as conceived underthe Scheme formulated by the Central Government in this behalf.

The main objective in establishing Indian Institutes of Information Technology is to set upa model of education which can produce world class human resource in the field ofinformation technology. These institutions are conceived as self-sustaining, research-ledinstitutions contributing significantly to the global competitiveness of key sectors of theIndian economy and industry with application of information technology in selected domainareas.”

1.4 Giving a background of the Bill, the Department of Higher Education submitted that theexisting four Indian Institutes of Information Technology (IIITs) at Allahabad, Gwalior, Jabalpurand Kancheepuram were set up in the years 1998, 1999, 2005 and 2007 respectively under theSocieties Registration Act and were governed by their Memorandum of Association and Rules. Theirincorporation under the Act would confer upon them an independent statutory status, besidesdeclaring them as Institutions of National Importance.

1.5 The Secretary highlighted the distinct features of the existing four IIITs. Under-graduate,Post-graduate and Ph.D. programmes were available in these Institutions. There was varyingnumber of faculty posts created with considerable gap so far as the existing faculty strength wasconcerned. In IIIT, Allahabad, against the sanctioned faculty strength of 109, faculty in positionwas 49+66 visiting faculty. Out of the sanctioned strength of 47 faculty members in IIIT, Gwalior,permanent faculty was 27 and 20 were visiting faculty. So far as IIIT, Jabalpur was concerned,out of the sanctioned faculty strength of 55, only 36 were in position. In IIIT, Kancheepuram, only18 faculty members were in position against the sanctioned strength of 42. Student strength variedin the four IIITs. Whereas IIITs at Allahabad and Gwalior were functioning from their permanent

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campus, construction work of permanent campus was in progress in IIIT, Jabalpur andKancheepuram. Lastly, Central funds were being duly provided to these IIITs.

1.6 Giving an idea about the background of the Bill necessitating the requirement of the presentlegislation, the Secretary drew attention to the following factors:

– to ensure uniformity and autonomy in academic, administrative and financial matters inIIITs.

– to facilitate the awarding of degrees by the IIITs as the existing four IIITs were setup initially as Societies. Though out of the four, three IIITs at Allahabad, Gwalior andJabalpur have already been converted into the deemed Universities, the one atKancheepuram was still functioning as society.

– novel experiment to bring the Central Government Institutions and the Institutions setup in partnership with State Government and Industry under a single legislation.

– to develop knowledge in Information Technology and with special focus on specificdomain areas.

– to provide manpower of global standards in Information Technology.

– to develop institutional framework for peer learning and networked research.

1.7 It was further informed that the Central Government in December, 2012, had approved aScheme for establishing twenty new IIITs, one in each State, in Public Private Partnership mode.The partners in setting up these IIITs were envisaged to be the Central Government, the StateGovernment and identified industry partners. In order to ensure uniformity and autonomy ingovernance, it was considered necessary to establish these IIITs through a Central Legislation. Thislegislation would also institutionalize structures such as IIIT council for policy discussion, peerlearning, networked approach to research and academic programmes, besides ensuring transparencyand accountability. It was further envisaged that the professional expertise and skilled manpowerin IT developed by these IIITs would harness the multi-dimensional facets of IT in variousdomains. It was expected that these IIITs would produce world-class high quality technicalpersonnel in order to provide manpower for emerging industries, science departments andlaboratories which in turn would contribute to the development of the industries and finally boostthe economic growth of the country.

1.8 The Committee was further informed that the capital cost of each IIIT would be `128.00crore to be contributed in the ratio of 50, 35 and 15 per cent by the Central Government, StateGovernment and the industry respectively. For the North-Eastern States, the ratio would be 57.7,35 and 7.5 per cent. In addition, the Central Government would provide `50.00 crore for facultydevelopment programme. The project was targeted to be completed in nine years from 2011-12 to2019-20. Each IIIT shall meet its entire operating expenditure on its own within five years of itscommencement, out of student fees, research and other internal accruals. It was also submittedthat the concerned State Government would provide 50-100 acres of land free of cost for settingup of IIITs. The industry partners, in addition to sharing the capital cost, were expected tocontribute towards research labs and projects, internship, faculty chairs etc. from time to time. Healso informed that there shall be a cap on the amount of support by the Central/State Governmentsand any escalation in the cost estimates would be arranged by the private partners.

1.9 The Committee was given to understand that proposals were invited by the Departmentfrom all the State Governments for setting up of IIITs. Land has been identified by 20 StateGovernments, i.e. Assam, Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, HimachalPradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan,

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Tamil Nadu, Tripura, West Bengal, UP and Goa. Proposals of 11 States i.e. Assam, Andhra Pradesh,Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Rajasthan, Tamil Naduand Tripura have been approved. MoU and MoA have been signed and society of IIITs registeredby four States, i.e. IIIT, Kota (Rajasthan), IIIT, Guwahati (Assam), IIIT, Chittoor (AndhraPradesh) and IIIT, Tiruchapalli (Tamil Nadu). It was also informed that academic session hadstarted in 5 IIITs in 2013-14 at Under-graduate level at IIIT, Kota, IIIT, Chittoor, IIIT, Guwahatiand IIIT, Vadodara and Post-graduate level at IIIT, Tiruchapalli.

1.10 The Committee observes that the country has done tremendously well in the field ofInformation Technology, which has become an important tool in the development ofmanpower for various areas of knowledge. The Indian Information Technology industry hasemerged as a strong and credible force which is now recognized as a major constituent ofthe global information technology services industry. The Committee understands that inorder to provide manpower of global standards for the information technology industry tocater to the needs of emerging areas of knowledge, economy, education and training,information technology is a pre-requisite. There is also no denying the fact that the ITsector has a positive impact on our economy and governance which in turn has improvedimmensely every aspect of our society, be it education, health facilities, agriculturalinnovations or service sector. The Committee welcomes the objective behind the proposedlegislation. However, a plain reading of the Bill raises very pertinent areas of concern. Boththe detailed inputs made available to the Committee and its deliberations have highlightedvery visible gaps so far as status of existing centrally-funded IIITs, mode of setting up thenew IIITs, their governance structure and likely impact on all the envisaged stakeholdersis concerned. The Committee is constrained to observe that the element of in depthexamination of the proposal from all conceivable angles at the initial stage is lacking to agreat extent. This is borne out by the fact that the very basis of IIITs being set up in PPPmode, with no convincing reasoning therefor is proposed to be done away after five years.

II. CONSULTATION PROCESS

2.1 The Committee was informed that the salient features of the draft Bill for establishment ofIIITs as Institutions of National Importance and the implementation of the scheme for new IIITsin PPP mode was discussed in the State Education Ministers’ Conference on 5 June, 2012.According to the Department, the draft Bill was discussed in detail and the States unanimouslysupported the Bill. In fact, the States demanded early passage of the Bill in Parliament. Duringdiscussion, some State Governments offered suggestions which the Department agreed to consider.The suggestions were to allow Central and State Public Sector Undertakings (PSUs) to be acceptedas industry partners for establishment of IIITs and giving States the flexibility to bring in one ormore industry partners instead of limiting the number of partners to three.

2.2 The Committee was also informed that a Cabinet Note was circulated to all the concernedMinistries and Departments to elicit their views on the draft legislation. The Ministry of Finance,Department of Legal Affairs, Ministry of Science and Technology and the Planning Commission hadsupported the proposal. However, the Department of Scientific and Industrial Research and theDepartment of Electronics and Information Technology made some important observations/comments which are as follows:–

Department of Scientific and Industrial Research, Ministry of Science and Technology

– Department of Scientific and Industrial Research, Ministry of Science and Technology,supports the establishment of 20 new IIITs in the country in PPP mode with CentralGovernment institution, institutions set up in partnership with State Government and

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Industry as stakeholders. The Department concurs with the view that various benefitswould accrue to the industry as partners namely, availability of qualified manpower forundertaking new product development and R&D, collaborative development ofinnovative products and services in association with IIITs, and an opportunity to driveresearch in IIITs based on perceived future needs of the industry etc.

– However, the Ministry of Human Resource Development may like to consider theinclusion of a provision in the Draft Cabinet Note that would spell out a scheme/mechanism to encourage private sector participation through fiscal incentives etc.

The Department of Electronic and Information Technology, Ministry of Communications andInformation Technology

– Consideration of restoring the functions of the Council as per clause 35 of the Bill of2010.

– In view of the renewed thrust to Electonics Systems Design and Manufacturing, it isimportant that MHRD may expand the ambit of education to include “education inElectronics System Design and Manufacturing (ESDM)” and to change the name of theinstitutes as “Indian Institutes of Electronics and IT”. Such a name would create afillip to the capacity building needed to meet the challenge of growing market demandin the ESDM sector to USD.

2.3 The response of the Department to above said observations was that the Indian Institute ofInformation Technology name has become a brand name and should provide the requisite incentiveto encourage private/public sector participation. It is proposed to capitalize on it rather than changeit, keeping in view the fact that it takes a long time for a brand name to be built in the mindsof the stakeholders. Further, Electronic and Communication Engineering is already a central part ofeach of the 20 IIITs which are designed/proposed to have the presence of domain areas. Theinstitute itself goes beyond IT and Electronics, to include its application areas.

2.4 The Committee is constrained to observe that no serious efforts have been made bythe Department of Higher Education to have wide ranging consultation with all thestakeholders. State Governments and industry partners are the most crucial stakeholders inthis endeavour envisaging collaboration between the Centre, States and Industry partners.Simple presentation and discussion by the Joint Secretary, Department of Higher Educationon such an important piece of legislation in the State Education Ministers’ Conferencecannot be considered adequate enough as focussed and issue-specific deliberations cannottake place in such a large body holding a formal meeting. Rightful course would have beento secure the specific and pointed reaction to all the conceivable aspects, both direct andindirect, of the proposed structure of IIITs in a PPP mode by all the stakeholders. Thiswould have required sharing of inputs and series of intensive deliberations. One cannotoverlook the fact that the States contributing 35 per cent of the capital cost, besidesproviding 50-100 acres of land free of cost remain the major stakeholder. Committee’sattention was also drawn towards a list of industry partners identified by the Departmentincluding private industries such as TCS, Infosys, Tata Motors, CK Birla Groups etc. andCentral/State PSUs such as ONGC, NEEPCO, UP Electronics Corporation, HSIDC (Haryana)etc. As the details of discussions held with the private industries and Central/State PSUshave not been shared, the Committee is not aware about their views/suggestions on the Bill.

2.5 The Committee, in order to have a broad based consultation on the proposed legislation,decided to issue a Press Release. Unfortunately, the Press Release failed to receive the desiredresponse. The Committee then decided to hear the representatives of IIIT, Hyderabad and Bangalore

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so that it could understand the difference between IIITs, Allahabad, Jabalpur, Gwalior andKancheepuram and IIITs, Hyderabad and Bangalore with reference to their set-up, governancestructure and functioning. It was informed that IIITs, Hyderabad and Bangalore were establishedin 1998 and were the initiatives of the respective State Governments, IT industries in the State andthe industry bodies. They were set up through a Government order, but as a not-for-profit, publicprivate partnership. The IIITs of Hyderabad and Bangalore are registered societies, with recognitionas deemed university under section 3 of the UGC Act.

2.6 The representatives of IIIT, Hyderabad submitted before the Committee that IIIT,Hyderabad was an autonomous University set up in 1998 as a not-for-profit Public PrivatePartnership (N-PPP) entity and was the first IIIT to be set up under this model in India. TheGovernment of Andhra Pradesh catalyzed the institute set-up of buildings. The IIIT-Hyderabadmodel combined the social orientation of Government institutions with the resemblance of theprivate sector. It was further submitted that the independence offered by the model, combined withthe financial self-sufficiency, was critical to autonomy and flexibility in programmes andprocedures. The Institute had transferred this autonomy internally to its faculty and researchgroups. The representative also added that the Governing Council of IIIT, Hyderabad consisted of15 eminent people from academic and industry, along with nominees of the Government. ThisCouncil was empowered to take all decisions about the institute. IIIT, Hyderabad was helping totrain teachers of engineering colleges in Andhra Pradesh and also giving them digital coursewareso that their students could benefit directly.

2.7 The representative of IIIT, Bangalore submitted that it was set up consequent to the 1997Karnataka’s Industrial Promotion Policy for the Information Technology Sector. The policy wasevolved by the Government in discussion with the leading industries and industry associations likeNASSCOM. Subsequent to the adoption of the policy, the Government had discussions amongGovernment officers, industry leaders, industry associations and academics involved in the ITsector. After multiple rounds of discussions, it was decided to set up an IIIT (at that time IndianInstitute of Information Technology) as an Industry Driven Initiative and the Government’s rolelimited to (a) provision of land (b) `10 crore for infrastructure and (c) provision of necessaryguidelines and support to promote the growth of the Institute to achieve the objective of a worldclass/Global Institute of Excellence. The major objectives of the Institute were to become aspecialized centre for higher learning in IT to promote Bangalore as a global centre of Excellencein IT, to carry out R&D both on its own account and also based on sponsorship from Indian andGlobal IT industry, to act as an interface between industry and academic community, to co-createIntellectual Property and commercialization of IP and to train professionals from industry andGovernment on advanced IT technologies. Thus, the Institute was to promote a close andsymbiotic relationship with the Industry. IIIT, Bangalore was set up purely as a post-graduateinstitute. The reason for focussing only on the postgraduate education was to focus on research,product development and design patents. IIIT, Bangalore was structured as a Registered Society,with founding members, patron members (industries which donate `1 crore), industry memberswho donate `25 lakhs and individuals who had the expertise and had made significant contributionto IT. The membership of the society was not automatic. The membership has to be approved bythe Governing Body. Thus, by merely paying the fees or donation, one could not become a memberof the society.

2.8 On a specific query regarding model of IIIT, Hyderabad and Bangalore proving moresuccessful when compared with the four IIITs in the Government sector, the Department’s replywas that IIIT Hyderabad and Bangalore have made a mark in terms of the research output and thequality of their students. However, it could not be said that they have been more successful. Thecentrally funded IIITs are inclusive in the sense that the Central Reservation Act applies to them.Besides, the placement record of the older centrally funded IIITs has been excellent. The proposed

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IIIT Bill, 2013 amalgates the best features of IIIT, Bangalore and Hyderabad along with necessarymechanism to ensure transparency, inclusion and accountability and also autonomy. On a queryregarding the role of the State Governments and industry in setting up of IIIT, Hyderabad andBangalore and their involvement in the day to day functioning of these institutions, the Departmentinformed that the Andhra Pradesh Government provided the land at a discounted rate and initialbuildings to IIIT, Hyderabad and also persuaded top industries to partner with the institution. TheGovernment or the industry is not involved in the day-to-day functioning of the institute in anymanner. However, principal Secretaries, IT and Higher Education were there in the GoverningCouncil, the highest body of governance. Similarly, in IIIT, Bangalore, neither the State Governmentnor the industry had any role in managing day-to-day affairs. Two officers of the StateGovernment had been invited to serve on the 17 member Governing Board.

2.9 The Committee understands that the proposed legislation amalgamates the best features ofIIIT, Bangalore and IIIT, Hyderabad along with necessary mechanisms to ensure transparency (RTIAct), inclusion (Central Reservation Act) and accountability and also autonomy. The Committee alsonotes the distinct features of IIIT, Hyderabad which has been set up in the Not for Profit-PPPmode with no support from the Government for running expenses. Only infrastructure in the formof land and some buildings was provided by the State Government. With regard to IIIT, Bangalore,State Government has supported with land and infrastructure grants.

2.10 On a specific query, the Committee was informed that both the IIITs at Hyderabad andBangalore have made a mark in terms of research output and the quality of their students. It wasalso admitted that it could not be said that these two Institutes have been more successful thanthe centrally funded IIITs, especially IIIT, Allahabad and IIIT, Gwalior which were started aroundthe same time as IIIT, Hyderabad and Bangalore. Not only this, the centrally-funded IIITs wereinclusive in the sense that the Central Reservation Act applied to them. Besides, the placementrecord of the older centrally-funded IIITs had been excellent.

III. ISSUES OF CONCERN

3.1 The Committee strongly feels that there are major shortcomings as elaborated belowwhich relate not only to the various provisions of the proposed legislation but also havefailed to address some very crucial aspects which should have been incorporated therein.Another worrisome factor is that the basic objective of the Bill does not seem to have beencarried forward along the expected lines as after a period of five years, the governancestructure of the IIITs is envisaged to undergo a complete change-over.

Scheme of Public-Private-Partnership (PPP) mode in setting up of IIITs

3.2 The Committee observes that the proposal for exploring the possibility of the establishmentof the IIITs in PPP mode came from the Planning Commission. These IIITs are to be set up inpublic-private-partnership mode with the capital cost of establishing each IIIT, to be shared in theratio of 50:35:15 by the Central Government, State Governments and the concerned Industrypartners respectively. For the North-East States, the contribution envisaged is 57.50:35:7.5 per cent.In addition to this, `50 crore would be provided by the Central Government for facultydevelopment. Besides, an amount of upto `10.00 crore from the Department will be provided tomeet any deficit in operating expenditure during the initial four years. Lastly, the concerned StateGovernment will provide 50-100 acres of land, free of cost. The project is targeted to becompleted in nine years from 2011-12 to 2019-20. It has also been specified that each IIIT shallmeet its entire operating expenditure on its own within five years of commencement out of studentfees, research and other internal accruals. In other words, the maximum cost of establishing theseinstitutions is to be borne by the Central Government followed by the respective State

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Governments. Only 15 and 7.5 per cent is to be contributed by the private sector. In such ascenario, what would be the control/interest of the private sector in the day-to-day functioning orin the policy decision of the institution acquires significant importance.

3.3 The Committee has been given to understand that the role envisaged for the industrypartners in the management of IIITs is to help in the development of R&D capability in IT industryas well as in domain industry (e.g. automotive, energy, remote sensing, building, transportation,agriculture, etc.), enhance global competitiveness of Indian industry by helping to create innovativeproducts and services, open up new areas for Indian Industry where it will be able to enter andresearch world class levels, help develop innovative products for the domestic market, which willbe the future products for the world, make available exceptionally educated manpower forundertaking product development and doing applied research and also generate socially-consciousand conscientious manpower. Besides this, the following specific role has been envisaged for theindustry partner:–

– industry to be represented on Board of Governors and to have a role in appointingChairperson and Director.

– to do joint research projects, create joint IPRs.

– depute industry professionals as adjunct faculty.

– encourage students to do research projects with Industry professionals as mentors.

– encourage faculty to have sabbaticals for short period with industry.

– internship, job opportunities for students of IIITs.

– offer sponsored Ph.Ds. for employees of Industry.

– to provide input on course curriculum in line with developments in the IT industry.

3.4 The Committee, taking into account the role assigned to the industry partner, observesthat the proportion of role that is being given to the industry partner is disproportionatelylarge compared to the contribution it would be making towards the cost of establishing theinstitutions. For five years, contribution of Central and State Government would be 50 and35 per cent respectively as compared to 15 per cent contribution by industry sector. Not onlythis, cost of land to be provided by the State Government, if added to their contribution,increases its share considerably. Similarly, Central Government is mandated to provideadditional `60 crore. In other words, there is no justifiable comparison between the Centre-State contribution and the one from the industry partner. The situation becomes somewhatunrealistic in the context of PPP mode as this mode, instead of being a permanent one, canbe considered as transitional, because after five years, these institutions are expected tobecome fully private. Each IIIT will be meeting its entire operating expenditure on its own,out of student fees, research and other internal accruals. The Committee fails to understandthe justification for continuing the public-private characteristic of IIIT only for five years.These IIITs could have easily continued to have the specified role as assigned in the initialstage. With the Institution taking roots, it could have started generating its own funds withCentral/State share decreasing accordingly. Another disturbing feature noticed is that evenduring the first five years of its existence, the presence of Central and State Governmentsis simply not there in all the decision-making authorities of the Institute. The Committee canonly say that the proposed IIITs would be purely private entities from day one of theirexistence. The only supervisory role is assigned to an internal Committee to review itsperformance within seven years and thereafter every five years Central Government has thepower to recommend on only policy-related issues.

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3.5 The Committee fails to identify any justification for handing over an institutionestablished with full support from the Central and State Government which continuedundiminished for five years to a private partner having full control of the institution. Inthe name of supervision there is a so-called review by an internal Committee and that tooafter a gap of five years. The Committee is of the firm view that the role of the Centraland the State Government cannot be secondary, tertiary or peripheral to the privateindustry partners, especially in the light of major contribution being from these authorities.The governance structure needs re-consideration more so because the Committeeapprehends that this set of educational institutions might become profit-making businessinstitutions. Therefore, the Central Government and State Governments should not have adiminished role in decision and policy making of these institutions. Presence of bothCentral and State Government has to be there without restrictions of time.

3.6 The Committee has been given to understand that in the case of centrally funded IIITs,industry involvement is on a particular project and not on a continuous basis. The Committeeagrees with the contention that the IT industry being applied in nature and having a very shorttechnology cycle, a continuous and long term engagement of the industry is necessary to aligninstitute with industry requirement for academic inputs, course design, R&D so as to increaseemployability which would benefit students, faculty, industry and society at large alike.

3.7 The Committee would, however like to point out that in our country, there are well-established institutes that are fully funded by the Government and there are institutes thatare privately funded. The Committee strongly feels that instead of having IIITs under thePPP mode, what needs to be encouraged are industry academia collaborations. An individualentity having a stake on the ownership might give rise to conflict between the welfareobjective of the Government and the profit motive of the industry a few years down theline. Nobody can deny the fact that IITs and NITs are functioning remarkably well and areknown worldwide for their excellence despite no industry having a stake in their ownership.In fact, industries now compete to associate themselves with these institutes for the qualityof graduates they produce every year.

3.8 The Committee strongly feels that instead of locating industry partners for investingin IIITs, the Bill should suggest locating them for informal and formal collaborations forpurely academic and industrial research-oriented purposes. Industrial training can be madepart of the curriculum in these institutes where industry partners can participate in termsof teaching and imparting practical skills. Similarly, extended industry internship can bemade compulsory for all UG students in their third/fourth year. Private partners can alsoplay a role in sponsoring industry oriented research rather than funding them. Instead ofadministration and management of the Institute, the industry partner should be engaged inpurely academic and research oriented activities.

Regional Balancing

3.9 It is an undisputed fact that the recent decades have seen tremendous growth in the settingup of technical institutions in the country with the maximum intake showing in informationtechnology. Private sector has been the major contributor by establishing a large number ofinstitutions. In the recent years, Central Government has also come forward by increasing thenumber of IITs, NITs and IIMs. The Committee has been given to understand that the proposalfor twenty new IIITs is a step in that direction.

3.10 The Committee, through its various Reports from time to time has been voicing its concernon the increasing element of regional imbalancing in the setting up of higher education institutionsin the country. Southern and Western region of the country have seen the major influx of such

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institutions. This trend has led to a situation where job placements have failed to match the sharpincrease in the intake capacity. According to AICTE figures, between 2007-08 and 2011-12, thenumber of seats in Engineering and Technology Institutions has risen by a whopping 130.8%.State-wise percentage of unemployed engineers, according to the Institute of Applied ManpowerResearch (2007) shows that percentage of unemployed Electronics Engineers was 22.28%. TheCommittee has no doubt that the latest figures would indicate a more dismal position. Another alliedaspect is the great demand of IT related courses by students. This has led to a situation wheremain focus of technical institutions, especially in the private sector is on making available more andmore such courses to the detriment of other core areas of technology. This increase is also therein the Government Sector with substantive addition in the number of IITs and NITs.

3.11 In such a scenario, the right approach would have been to make an assessment about theground level and start the process of setting up of IIITs only in those areas not having suchinstitutions. Unfortunately, Committee’s specific query in this regard has elicited a negative replyfrom the Department. Proposals were invited from all the States for IIITs based on theircommitment to contribute funds, land free of cost and encumbrances. The Department had clarifiedthat the location for each IIIT was a well-thought decision arrived at by a careful considerationof all factors like:

– presence of a number of IT parks and IT SEZs to enable the institute to leverage thegood quality infrastructure.

– presence of leading IT companies will enable the development of academia industrylinkages.

– presence of non-IT industry will enable the IIIT to develop domain specialization.

– availability of infrastructure including good connectivity, local transport, clean cityEnvironment.

– location should allow for future expansion of the institute.

3.12 On this issue being raised again by the Committee, the Department pointed out that aDetailed Project Report (DPR) to establish twenty IIITs in the country was sent to the PlanningCommission for in-principle-approval in 2006. The Planning Commission asked the Department toexplore the possibility of the establishment of these IIITs in PPP mode as this provided thenecessary forward and backward linkages. Subsequently, a Task Force was constituted todeliberate on the operational details of setting up the IIITs in PPP mode.

3.13 The Committee can only say that the above response of the Department clearlyestablishes the fact that the most crucial issue about the requirement of IIITs at theground level has remained unaddressed right from the beginning. The very fact that theDepartment approached all the State Governments for coming forward with their proposalsfor IIITs indicates that the location of these IIITs was not that important. The number ofproposed IIITs was also decided at the initial stage. The Committee is not aware about therationale for arriving at the figure of twenty IIITs.

3.14 The Committee would like to point out that the factors as indicated by theDepartment are to be taken into account along with the implications of other similarinstitutions already functioning in that area. If already excess number of IT institutions isthere, then benefits as enumerated above are essentially going to get diluted. TheCommittee finds that among the twenty States agreeing to set up IIITs, majority of Statesfrom N-E region, J&K and Uttarakhand have not come forward. Proposal from the State ofMadhya Pradesh, already having two well established Centrally-funded IIITs has also beenapproved. Also, major States like Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and

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Maharashtra, having both Government and private technical institutions have shown theirinterest by responding with their proposals. The Committee has very serious apprehensionsabout the ground-level situation prevailing in majority of technical institutions in suchStates. Not only considerable number of seats are going vacant, large number of studentsfail to get campus placements. The vision of the proposed IIITs to address the challengesfaced by the Indian IT industry in terms of domain specific skill deficit for the growing ITmarket in India and the world over is well-received. But the fact remains that ground levelsituation should have been the decisive factor for setting up an IIIT. Ideally, a gradualbeginning should have been made. In the case of NITs, the existing RECs were convertedinto statutory bodies with only four pre-identified well-established State institutions beinggiven the same status.

Issue of Faculty Shortage

3.15 The Committee has been voicing its concern on the acute shortage of faculty in highereducational institutions across the country. Right from well-established Central Universities to thoseset up recently, State universities as well as private universities, premier institutions like IITs, NITsand IIMs, this problem has emerged as the biggest handicap. Situation continues to be grim withno improvement foreseen in the near future.

3.16 Feedback relating to availability of required faculty in the existing IIITs made available tothe Committee revealed that IIITs were also facing the same problem. The representatives of IIIT,Hyderabad submitted that IIIT, Hyderabad currently had 78 full time faculty members, out of thesanctioned strength of 100. The Committee was given to understand that the faculty recruitmentwas very competitive which went on year-round. Against the sanctioned strength of 50 facultypositions in IIIT, Bangalore, currently the Institute had 30 full time regular faculty and 9 part timevisiting faculty. The Committee observed that the position was no different in the four Centrally-funded IIITs. In IIIT, Allahabad, against the sanctioned strength of 109 faculty, 49 were permanentfaculty and 66 were visiting faculty. In IIIT, Gwalior, against the sanctioned 47 faculty, 27 werepermanent faculty and 20 were visiting faculty. Position was better in IIIT, Jabalpur with therebeing 49 permanent faculty against the sanctioned strength of 55 faculty. However, in IIIT,Kancheepuram, out of 42 sanctioned faculty, only 19 faculty members were in position. On thisissue being taken up with the Department, it was submitted that the reasons for large number ofvacancies in the IIITs of Allahabad, Jabalpur, Gwalior and Kancheepuram were as follows:

– These IIITs were at par with IITs in 5th Pay Commission. However, in 6th PayCommission, the pay structure of these IIITs was made at par with NITs, so it wasnot very attractive to get faculty in these IIITs. However, now an order to bring themin parity with IIT Pay Scales has been issued, so the faculty situation is expected toimprove.

– Alternative job opportunities are good in IT and Management.

– Minimum qualification at entry level is Ph.D. Qualification and quality candidates arenot available.

– For senior level positions, teachers from existing institutions of higher learning with oldpension scheme do not apply as the IIITD&M-Jabalpur is under new pension scheme,so they may lose their pension benefits. MHRD is trying to address this issue inconsultation with the Department of Pensions.

3.17 When asked to substantiate the steps taken for augmenting the faculty in IIITs, theDepartment submitted that availability of top of the line faculty was critical to the success of theIIIT initiative. There was a need to provide a research-oriented environment, sustainable faculty

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development initiatives and market driven compensation to attract and retain good faculty. EachIIIT would enter into formal collaborations with premier academic institutions in India (e.g. IITsand IIIT, Hyderabad etc.) and overseas which would not only help in faculty development, butwould also lead to collaborative research. Another important element would be to encourage thecorporate partners for each institute to depute experienced professionals as faculty to the IIIT foran extended period. The scheme for setting up of 20 new IIITs in the PPP mode provided for aFaculty Development Programme for which `50.00 crore would be provided by the CentralGovernment. National knowledge network and new mode of online education would also be utilizedfor filling the gap between the sanctioned strength and actual number of faculty. Existing IIITs willplay the role of mentor for developing faculty. The new IIIT in PPP mode in Chittoor establishedin Andhra Pradesh under this scheme proposed to meet some of junior faculty requirements throughlecturers cum PhD students, who were expected to teach as well pursue PhD program in parallelfrom IIIT-Hyderabad. Aggressive efforts were also envisaged to attract and retain faculty incollaboration with industry partners.

3.18 It is an undisputed fact that the problem of shortage of faculty persists and ails mostof universities/institutions of the country. The Committee notes that a number of initiativesare proposed to be taken by the Department to tackle this challenge in the proposed IIITs.The various measures proposed to be initiated can only be termed as long-term planningwhose impact will be evident after a considerable time-gap. The Committee fails tounderstand as to how such a major requirement of qualified faculty can be met for as manyas twenty IIITs to be set up in the near future. Not only this, in view of the ever-increasingdemand of IT professionals the world over, chances of young IT students, getting attractivejob offers on completion of their B.Tech courses, going for teaching profession are very less.The Committee strongly feels that merely declaring IIITs as Institutions of NationalImportance will not serve any purpose. The main objective of every educational institutionis to impart quality education to its students and this could be done by qualified andexperienced faculty only. In other words, teachers are the foundation stone on which theedifice of every institution is structured.

3.19 The Committee is also of the view that other technological interventions, such as theone based on MOOCs (Massive Open Online Courses) run by IITs can prove to be helpfulespecially in view of its likely immediate impact. The Committee can only reiterate thatthis aspect has to be given top priority. The other viable option likely to show immediateresults would be to utilize the services of available teachers to the maximum through meansof information technology like video-conferencing by having the facility of a single teacherteaching the students of more than one IIIT at the same time.

Status of Centrally-funded IIITS and the proposed IIITS on PPP Mode

3.20 The Committee observes that the Bill seeks to incorporate the existing four IIITs as well asthe proposed twenty IIITs as Institutions of National Importance. Out of the four existing IIITs, IIITAllahabad and Gwalior have been in existence since 1999-00 and 1998-99 respectively. Similarly, IIIT,Jabalpur and Kancheepuram were set up in 2005-06 and 2007-08 respectively. Over the years, theseIIITs have been functioning satisfactorily in all their designated areas. IIITs at Allahabad, Gwalior andJabalpur have been declared as deemed to be universities. Student placement records over the yearshave also continued to be very impressive. In other words, the four Centrally-funded IIITs as wellas IIITs, Bangalore and Hyderabad have been equally successful.

3.21 When this issue was taken up with the Department, the Committee was informed that withthe enactment of the proposed legislation, the four centrally-funded IIITs will be accorded anindependent statutory status and also declared as Institutions of National Importance. These IIITs

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will also be part of the proposed IIIT Council with a view to co-ordinate their activities, ensurepeer learning and have across-the-IIITs linkages for net-worked research and programmes. TheCommittee was given to understand that the governing structure remained pre-dominantly the sameexcept for the mode of selection of Chairman, Director and the industry representatives on theBoard of IIITs. In case of centrally-funded IIITs, the Search-cum-Selection Committee will havetwo nominations from the Central Government and one nomination by the State Government. Incase of PPP mode IIITs, Chairman will be appointed by a Search-cum-Selection Committee whichwill have one nominee each of the Centre, State and industry partners. Further, the process ofselection of the Director will be different in case of existing Government, IIITs to the extent thatthe nominee of the industry would be replaced by that of the Central Government.

3.22 The Committee is not able to reconcile with the clarification given by the Department. Onthe one had as pointed out by the Department, the centrally-funded IIITs will be getting a statutorystatus, it has also been mentioned that their existing structure will continue. These institutions areregistered as societies with a BOG with representation from the Ministry, industry, academia andState Government. The Committee would, however, like to point out that as provided in clause 4(1)and in the schedule, the four existing centrally-funded IIITs will no longer be registered societiesbut statutory bodies.

3.23 The Committee observes that with the enactment of the proposed legislation, theexisting centrally-funded IIITs as well as the proposed IIITs to be set up on PPP mode willbe having the same status and will be functioning in accordance with the provisions of thenew Act. However, the Committee is surprised to note lack of clarity in view of the existingfour IIITs continuing to get the support of Central funding whereas the proposed IIITswould not be getting any financial support at the Central and State level after five years.The Committee understands that Central/State Government nominees would not be havingany hand in decision making in both the categories of IIITs. The Committee fails to findany justified reasons for such a situation. Instead of Central and State Governments beinginvolved in the running of proposed IIITs at par with the industry partners their presenceis proposed to be withdrawn even in the case of existing Centrally-funded IIITs. There doesnot seem to be any rationale for envisaging the governance structure of IIITs in theproposed legislation.

3.24 Another issue which is somewhat disturbing is the proposal to declare the yet to beestablished IIITs as Institutions of National Importance. The existing Centrally-funded IIITsand the proposed IIITs cannot be treated at equal footing. Over the years IIITs, Allahabad,Gwalior, Jabalpur and Kancheepuram have earned their name with the first three IIITsbeing given the status of deemed-to-be universities. The Committee would appreciate if thisaspect is reviewed by the Department and appropriate decision taken accordingly.

IV. THE COMMITTEE MAKES RECOMMENDATIONS ON SOME OF THE PROVISIONSAS FOLLOWS:

Clause 3: Definitions

4.1 Clause 3 deals with definitions. The definition of the term ‘industry partner’, besidestrust and company includes an individual. The Committee is of the opinion that anindividual being considered as an industry partner would not be justified. The Committee,accordingly, recommends deletion of the same.

V. CLAUSE 9: INSTITUTE TO BE NOT-FOR-PROFIT LEGAL ENTITY

5.1 Clause 9 provides that every Institute shall be a not for profit legal entity and no part of

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the surplus, if any, in revenue of such Institute, after meeting all expenditure in regard to itsoperations under this Act, shall be invested for any purpose other than for the growth anddevelopment of such Institute or for conducting research therein.

5.2 The Committee is of the view that it should be specifically provided that no part ofthe surplus could be diverted to the industry partner. The Committee, accordingly,recommends the addition of the following proviso to clause 9:

“Provided that no part of such surplus revenue shall be appropriated, distributed ortransferred to its industry partner or to any other person.”

VI. CLAUSE 10: INSTITUTE IN PUBLIC-PRIVATE PARTNERSHIP MODE

6.1 Clause 10 relates to establishment of Institutes in public-private-partnership mode. Itincludes provision relating to identification of the industry partner, criteria for proposal for settingup IIIT and Memorandum of Understanding to be signed by the Central Government, StateGovernment and industry partner.

6.2 The Committee notes that this clause does not specify the conditions in case theindustry partner puts forth the proposal to pull out of the joint partnership. It is also silenton a situation arising from the violation of terms and conditions of MoU. The Committeerecommends that relevant provisions in this regard need to be incorporated in the Bill.

VII. CLAUSE 11: ESTABLISHMENT OF INSTITUTE FULLY FUNDED BY CENTRALGOVERNMENT

7.1 This clause relates to establishment of an IIIT fully funded by the Central Government.

7.2 The Committee observes that the main objective of the proposed legislation is to declare thefour centrally funded IIIT as Institutions of National Importance and also to establish twenty IIITsin PPP mode. On a query about having a specific provision for establishment of centrally-fundedIIITs, the Department informed that the rationale for having a provision for setting up of centrallyfunded IIITs in the Bill was to enable the Central Government to establish new centrally fundedIIITs when such a need arose, especially in cases where the private industry may not beforthcoming and a particular State may need it from an economic development perspective tocorrect regional imbalances.

7.3 The Committee observes that Chapter III pertains to establishment of Institutes inpublic-private partnership mode. Whereas Clause 10 of this Chapter dwells upon IIITs tobe established under PPP mode, clause 11 refers to IIITs fully funded by CentralGovernment. The Committee strongly feels that governance structure of Centrally-fundedand PPP mode institutions cannot be on a uniform pattern. Both Central and StateGovernment are the major stakeholders with industry partner being a smaller partner tothem in the case of PPP mode IIITs. So far as Centrally funded IIITs are concerned,obviously the Central Government is the major stakeholder supported by its State partner.The Committee would like to point out that ideally, there should have been a separateChapter devoted to management and other allied aspects for the centrally funded IIITs.However, the Bill as drafted treats both the two envisaged categories of IIITs on the samefooting. What is more disturbing is that various provisions as formulated clearly indicatethat governance edifice is meant for a purely private institution. The Committeeexpresses its serious apprehensions on the adverse impact likely to emerge in the nearfuture. The Committee would appreciate if all the relevant provisions are reviewed so asto bring out the exact set up of both the categories of IIITs. There should not be anyscope of ambiguity.

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VIII. CLAUSE 12: BOARD OF GOVERNORS

8.1 Clause 12 deals with the composition of the Board of Governors and the Search-cum-Selection Committee for the appointment of the Chairperson.

8.2 The Committee observes that the 15-member Board of Governors does not have a nomineeeither from the Central or the State Government. On this issue being taken up with the Department,the Committee was informed that IIITs were the specialized institutes in high-end technology.Therefore, it was thought that the Central Government may be better represented through some ofthe centrally-funded technical institutions and research laboratories, which would provide domainspecific expertise. As a result, the Director of IIT, NIT (Central Government Institutions), Vice-Chancellor of the University in the Zone (Central/State Government) and two representatives of theresearch laboratories had been included. There was a representative of the SC/ST community, whoshall be nominated by the State. However, in case of centrally funded IIITs, Central Government’snominee was there.

8.3 The Committee finds the above justification given by the Ministry as totallyunconvincing. The Committee would like to emphasize that in the case of centrally-fundedinstitutions, nominees of both Central and State Government are to be mandatorily therein all the decision-making bodies. The proposed legislation deals with both centrally-fundedas well as PPP mode IIITs. While the centrally funded IIITs are the total responsibility ofthe Central Government, Centre would be contributing 50 per cent of the infrastructurecost of `128 crore for each IIIT in PPP mode. The Centre will also provide `60.00 crore forfaculty development and up to `10 crore to each such IIIT for the recurring expenditureduring the first five years. State Government will be contributing 35 per cent along with 50-100 acres land free of cost.

8.4 In such a scenario, the Committee fails to understand the rationale for not havingany nominee from the Central and State Government in the Board of Governors. This isall the more surprising when private institutions like IIIT, Hyderabad and Bangalore haveGovernment nominees on their decision-making bodies. The Committee is of the view thatnomination of representatives of centrally-funded technical institutions and researchlaboratories will no doubt facilitate dissemination of domain-specific expertise. But itcannot in any way take the place of representation of Government nominee who will behaving the authority to take a stand on policy issues. The Committee, accordingly,recommends that composition of the Board of Governors may be re-looked into so as tohave the required representation of Government nominees both at the Central and Statelevel.

IX. CLAUSE 20: REVIEW OF PERFORMANCE OF INSTITUTE

9.1 Clause 20 deals with review of performance of Institute. This review will be carried outby a Committee to be constituted within seven years of establishment of Institute and thereafterevery fifth year. The recommendations of the Committee are to be laid before both the Houses ofParliament.

9.2 The Committee observes that this Committee shall consist of members of reputefrom relevant fields of teaching, learning and research in the Institute. The Committee isof the view that such an internal Committee would not be in a position to make anobjective assessment. Association of experts from other institutions/universities would makethe composition of such a Committee balanced. However, this provision alone would not beadequate enough. Appropriate step would have been to have an independent body for thispurpose.

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X. CLAUSE 34: COUNCIL OF INSTITUTES

10.1 Clause 34 deals with the Council of the Institutes and its composition.

10.2 According to the Department, this Central Apex Body i.e. IIIT Council would co-ordinateactivities of all the institutes and deliberate on matters of common interest, policy discussion, peerlearning, networked approach to research and academic programmes, besides ensuring transparencyand accountability.

10.3 From a perusal of this provision, it is evident that the IIIT Council consists of a Ministerfrom Central Government, a Minister in charge of technical education of State Government, theindustry partner of each of the Institutes; Chairpersons of each Institute, Directors of each of theInstitutes, four persons nominated by the Central Government, one each from the Ministry ofFinance, Technical Education, Science and Technology and Information Technology, three personsfrom information technology industry and three persons of eminence from academia or civilsociety.

10.4 The Committee observes that the Council is a large body having various categoriesof representatives. However, there is no representation from bodies like UGC and AICTE.UGC is an apex body regulating the entire gamut of higher education and AICTE in thenodal statutory body for technical education. As the proposed IIITs are envisaged to be thepremier technical institutions, it would be appropriate if the representatives of UGC andAICTE are also included in the Council. The Committee would also like to point out thatrepresentation of Members of Parliament is there in similar bodies of all higher educationalinstitutions. However, the same is missing in the Council of IIITs. The Committee is of theview that inclusion of a MP would prove helpful in facilitating the interests of the proposedIIITs. The Committee, accordingly, recommends the inclusion of all the above-mentionedauthorities/MPs in the Council of IIITs.

XI. CLAUSE 36: FUNCTIONS OF THE COUNCIL

11.1 This clause deals with functions of the Council.

11.2 As per clause 14, one of the functions of the Board would be to fix, by the statutes, feesand other charges payable by students on a specific query in this regard, the Committee wasinformed that there was a wide variation in the fee structure of the privately managed IIITs atHyderabad and Bangalore and the four centrally-funded IIITs at Allahabad, Gwalior, Jabalpur andKancheepuram. Whereas fees charged for different programmes by IIIT, Hyderabad and Bangaloreare from `1.2 lakhs to `1.6 lakhs, fees being charged by centrally-funded IIITs are `70,000 andfor some programmes even less.

11.3 The Committee is apprehensive that with no uniform fee structure for variouscourses in IIITs, any amount of fees could be decided and charged by the respectiveinstitutions which could be a burden on the students, especially the students belonging toeconomically weaker sections. The Committee is of the considered view that there is a needfor having a mechanism for providing uniform fees for all the centrally-funded IIITs andalso in the proposed IIITs. Committee’s attention has been drawn by the functions assignedto the Council of NITs. Out of the various functions, one relates to levying of fees. TheCommittee fails to understand the reason for not assigning this function to the Council ofIIITs. With this function assigned to the Board of every IIIT, there would be neither anyelement of uniformity nor any outer limit on fees to be charged. The Committee is of thefirm view that like NITs, the proposed IIITs have to exercise their main functions underthe Central Body of Council.

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XII. GAP AREAS IN THE BILL

12.1 Based on the overall analysis of the Bill, especially in the context of other similar pieces oflegislation, the Committee observes that there are three major gap areas as indicated below:

No Mechanism in the Bill for monitoring/regulating IIITs.

12.2 The proposed Bill envisaging IIITs in PPP mode gives complete autonomy to theseinstitutions in matters of academics, faculty, personnel, finances, administration etc. Theseinstitutions would enjoy unfettered freedom in financial administration also. They would be free toevolve their own admission criteria, decide their own fee structure and other charges, appointteachers, determine their salaries and service conditions etc. Unlike centrally funded institutions,PPP mode institutions would not be under the purview of the CAG.

12.3 The Committee was given to understand that the monitoring mechanism was provided inclause 20 which specified that every institute shall, within seven years from the establishment andincorporation of such institute under this Act and thereafter at the expiry of every fifth year,constitute with the prior approval of the Central Government, a Committee to evaluate and reviewthe performance of such institute in achievement of its objects in the said period.

12.4 The Committee is of the firm view that mere evaluation and review of every IIITafter seven years after its establishment by an internal Committee and thereafter everyfive years cannot take the place of an in-built effective monitoring mechanism having thepresence of independent members for these IIITs. There has to be a balance of autonomyand accountability if these institutions are to set benchmarks for excellence in their domainof specialization.

No provision regarding imposition of penalties

12.5 The Committee observes that the proposed legislation does not have any provision regardingimposition of penalties, monetary or other for contravening the provisions of the Bill or any rulesmade thereunder. The Committee notes that there is no provision to tackle a situation where anindustry partner deviates from the Memorandum of Understanding entered into with the CentralGovernment. On a specific query in this regard, the Committee was informed that the involvementwas voluntary and MoU provided that the efforts of all parties shall be to resolve the issues, ifany, amicably. In case of misunderstandings, the matter shall be placed before the Minister whosedecision shall be final and binding on all three parties.

12.6 The Committee is of the considered view that there might be instances ofcontravention of provisions of the Bill or the MoU, more so in view of the autonomy andflexibility envisaged for IIITs which is likely to increase after five years of their cominginto existence. The Committee strongly feels that a specific provision outlining the kind ofpenalties liable to be imposed in case of non-adherence to the terms and conditions can beeasily incorporated in the Bill. Such a provision is required to be there, keeping in view thekind of autonomy and freedom from bureaucratic control envisaged for the proposed IIITs.The Committee recommends that a specific provision pertaining to penalties, authorityhaving the power to impose the same and the procedure therefor may be incorporated inthe Bill.

Absence of Grievance Redressal Mechanism for students and teachers in the Bill

12.7 The Committee observes that there is no provision for a mechanism for redressal ofgrievances of teachers and students in the IIITs. There is no mention of any way out for

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registering complaints of teachers and students and disposing the same by an authority whichwould be objective and fair. When this issue was taken up with the Department, Committee’sattention was drawn to clause 19 which provided that the Board may, by statutes, declare suchother posts as authorities of the Institute and specify the duties and functions of each suchauthority. It also provided that the Board may constitute such Committees as it may deem fit forproper management of affairs of the Institute. Also, once formed, the IIIT council headed by HRDMinister would be empowered to take up such issues as may be referred to it by the Centre, Statesand the Institute. Any grievance can be addressed by the IIIT Council.

12.8 The Committee would like to point out that the Central Universities Act, 2009 hasspecific provisions like ‘Procedure of appeal and arbitration in disciplinary cases againststudents’ and ‘Right to appeal’. Not only this, statutes to be made under the Act are toprovide for the procedure for arbitration in cases of dispute between employees or studentsand the University and also the procedure for appeal to the Executive Council by anyemployee or student against the action of any officer or authority of the University.Similarly, the NIT Act has a provision relating to Tribunal of Arbitration. The Committeefails to understand the reasons for not having similar provisions in the proposed legislation.The Committee recommends that all the required provisions as incorporated in othersimilar Acts may be incorporated in the proposed legislation also.

XIII. CONCLUSION

13.1 It is an undisputed fact that our country has made its presence felt in theinformation technology industry and is now recognized as a major constituent of the globalinformation technology services industry. The Committee is also aware that many of ouruniversities and research organizations are doing commendable work in the field ofinformation technology in spite of severe shortage of qualified and experienced faculty. TheCommittee further observes that many of the industries are relying on informationtechnology more nowadays and they would be needing increasing trained manpower in thefield of information technology. The objective behind the proposed legislation is laudable.However, the Committee, after making an in-depth analysis of the Bill has drawn theattention of the Government to the shortcomings, lack of provisions and contradictionsobserved in the Bill in the Report. The Committee would appreciate that necessarymodifications are brought out in the Bill as recommended by it. The Committee is of thefirm view that the right approach would be to set up the IIITs on the pattern of NITs. TheCommittee would also appreciate if instead of going for twenty IIITs simultaneously, everyproposal is examined from all conceivable angles and only set up thereafter. Number ofproposed IIITs could be less in the process but the objectives will be more than specific,balanced and achievable.

14. The enacting formula and the title are adopted with consequential changes.

15. The Committee recommends that the Bill may be passed after incorporating theamendments/additions suggested by it.

I6. The Committee would like the Ministry to submit a note with reasons on therecommendations/suggestions which could not be incorporated in the Bill.

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102, South Avenue,New Delhi-100011Phone : 011-23795681Fax : 011-23795683Mobile : +91 9013180313

K. MADHAVAN SMARAKA MANDIRAMNair Thara, VadakkencherryPalakkad, Kerala-678683Phone : 04922-257600Fax : 04922-257900Mobile : +91 9447719000E-mail : pkbijump@gmail.com

P.K. BIJUMember of Parliament

(Lok Sabha)

Alathur, Kerala

Member:* Standing Committee on Human

Resource Development* Consultative Committee for

Information Technology* Court of Jawaharlal Nehru

University, New DelhiWeb Site: www.pkbijump.in

12.12.13

The Indian Institute of Information Technology Bill, 2013: A Dissent Note

Dear Chairman,

The enthusiasm on passing the Indian Institute of Information Technology Bill, 2013 is anexample of another effort by the Government to commercialisation and sabotaging of social justicein education at the expense of tax payers money. The bill seeks to four existing IIITs and twentynew IIITs to be under Public Private Participation (PPP) mode under the guise of producing worldclass human resource in the IT sector.

Clause 10 (6.a) says that

“The investment of capital in establishment of the institute, the respective shares in suchinvestment of capital of the Central Government, the concerned State Government and theindustry partner, and the phasing of such capital investment over a period of five years”.

It is a matter of grave concern that the basic objective of the bill does not seem to havebeen carried forward the expected lines as after a period of five years and the governance -structure of IIITs is envisaged to undergo a complete change over. In India, till date there has beenno systematic evaluation of successful PPP implementation in any sector. Rather, PPP experimentsin sectors such as basic services such as water and electricity have proven anti-people·repercussions. In countries with a weak or non-existent regulatory regime, there have beendisastrous consequences. In Africa, Latin America, Eastern Europe and south Asian countries theprocess has been often chaotic and counter-productive. In this context, there is no convincingbasis to set up the IIITs under PPP mode and done away to be replaced by the private.

Secondly, according to clause 10 (3.d) one of the criteria for selection of the proposal shallavailability of land (50-100 acres) free of coast provided by the state government. The committeewas further informed that the capital cost of IIIT would be 128.00 crore to be contributed in theratio of 50, 35 and 15 per cent by the Central Government, State Government and the industryrespectively. For the North-Eastern States, the ratio would be 57.7, 35 and 7.5 per cent. Inaddition, the Central Government would provide 50.00 crore for faculty development programme.According to definition given by World Bank (2012):

NOTE OF DISSENT

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PPPs are a partnership between the public (government) A long-term contract between aprivate party and a government agency, for providing a public asset or service, in whichthe private party bears significant risk and management responsibility.

Again the International Labour Organization (ILO) and UN defined PPP as:

Public-Private-Partnerships are voluntary and collaborative relationships among variousactors in both public (State) and private (non-State) sectors, in which all participants agreeto work together to achieve a common goal or undertake specific tasks. Partnerships mayserve various purposes, including advancing a cause, to implement normative standards orcodes of conduct, or to share and coordinate resources and expertise. They may consistof a specific single activity, or may evolve into a set of actions or even an enduring alliance,building consensus and ownership with each collaborating organization and its stakeholders.While they vary considerably, such partnerships are typically established as structuredcooperative efforts with a sharing of responsibilities as well as expertise, resources andother benefits.

Here only 15 and 7.5 per cent is to be contributed by the private sector. In such a scenario,the pertinent question is that, what would be the interest of the private sector in sharing theresponsibilities and risk sharing? The logical end of this PPP initiative is privatisation after fiveyears. It is also pertinent that why such huge major investment by the Government should be goneto the hands of private sector?

This would lead to the next scenario that after five years everything would be decided bythe private sector in the IIITs. Clause 8. (1) says that “Every Institute shall be open to all personsof either sex, irrespective of caste, creed, race, religion, disability, domicile, social or economicbackground”. It generally involves the introduction of business plans and private sector values indecision-making using narrowly defined efficiency and financial criteria. Students and teacherswould be treated largely as ‘consumers’ whose needs are assessed purely in terms of the needsof paying individuals rather than as collective groups whose needs may be contradictory andunequal. Performance indicators would be adopted which give greater priority to narrow efficiencyand value for money criteria than to effectiveness of service delivery and the meeting of socialneeds.

Another concern is the veracity of the claims in the statement of Objects and reasons ofthe IIIT bill 2013. It reads; In order to provide manpower of global standards for the informationtechnology industry to cater the needs of emerging areas of knowledge economy, education andtraining, information technology. For example, In IIIT, Allahabad, against the sanctioned facultystrength of 109, faculty in position was 19+66 visiting faculty. Out of the sanctioned strength of47 faculty members in IIIT: Gwalior, permanent faculty was 27 and 20 were visiting faculty. Sofar as IIIT, Jabalpur was concerned, out of the sanctioned faculty strength of 55, only 36 werein position. In IIIT, Kancheepuram, only 18 faculty members were in position against thesanctioned strength of 42. How these institutions with shortage of faculties can produce worldclass manpower. Again, the purpose of IITs bill 2013, as per its statement of Objects and reasonsare not to pursue knowledge in the form of research but only to act an agency to producemanpower to the industry not to the society.

It is evident by the importance given to the industry. The following specific role has beenenvisaged for the industry partner:–

■ industry to be represented on Board of Governors and to have a role in appointingChairperson and Director.

■ to do joint research projects, create joint IPRs.

20

■ depute industry professionals as adjunct faculty.

■ encourage students to do research projects with Industry professionals as mentors.

■ encourage faculty to have sabbaticals for short period with industry.

■ internship, job opportunities for students of IIITs.

■ offer sponsored Ph.Ds. for employees of Industry.

■ to provide input on course curriculum in line with development in the IT industry.

Taking into account the role assigned to the industry partner the proportion of role that isbeing given to the industry partner is disproportionately large compared to the contribution it wouldbe making towards the cost of establishing the institutions. For five years, contribution of Centraland State Government would be 50 and 35 per cent respectively as compared to 15 per· centcontribution by industry sector. Not only this, cost of land to be provided by the StateGovernment, if added to their contribution, increases its share considerably.

The enthusiasm for PPP rests on the idea that the public sector is incapable of deliveringalone, and that partnerships would assist in releasing resources from the private sector toimplement major developmental objectives. But, nobody can deny the fact that IITs and NITs arefunctioning remarkably well and are known worldwide for their excellence despite no industryhaving a stake in their ownership. In fact, industries now compete to associate themselves withthese institutes for the quality of graduates they produce every year. Then the very argument forPPP mode would be dubious. The only supervisory role is assigned to an internal committee toreview its performance within seven years and thereafter every five years Central Government hasthe power to recommend on only policy-related issues.

Further it is difficult to understand the rationale for not having any nominee from theCentral and State Government in the Board of Governors. This is all the more surprising whenprivate institutions like IIIT, Hyderabad and Bangalore have Government nominees on their decision-making bodies.

I have strong reservations against handing over an institution established with full supportfrom the Central and State Government which continued undiminished for five years to a privatepartner having full control over the institution leading to commercialisation. The Government needsto maintain its involvement, whether in its capacity as partner or regulator. This is especially truewhere accountability is critical, cost-shifting present’s problems and above all societal normativechoices and social justice are more important than costs. Hence, I strongly oppose to implementthe “The Indian Institute of Information Technology Bill, 2013” in any of its forms.

Sd/-P.K. Biju

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OBSERVATIONS/RECOMMENDATIONS OF THE COMMITTEE — AT A GLANCE

I. INTRODUCTION

The Committee welcomes the objective behind the proposed legislation. However, aplain reading of the Bill raises very pertinent areas of concern. Both the detailed inputsmade available to the Committee and its deliberations have highlighted very visible gaps sofar as status of existing centrally-funded IIITs, mode of setting up the new IIITs, theirgovernance structure and likely impact on all the envisaged stakeholders is concerned. TheCommittee is constrained to observe that the element of in depth examination of theproposal from all conceivable angles at the initial stage is lacking to a great extent. Thisis borne out by the fact that the very basis of IIITs being set up in PPP mode, with noconvincing reasoning therefor is proposed to be done away after five years. (Para 1.10)

II. CONSULTATION PROCESS

The Committee is constrained to observe that no serious efforts have been made bythe Department of Higher Education to have wide ranging consultation with all thestakeholders. State Governments and industry partners are the most crucial stakeholders inthis endeavour envisaging collaboration between the Centre, States and Industry partners.Simple presentation and discussion by the Joint Secretary, Department of Higher Educationon such an important piece of legislation in the State Education Ministers’ Conferencecannot be considered adequate enough as focussed and issue-specific deliberations cannottake place in such a large body holding a formal meeting. Rightful course would have beento secure the specific and pointed reaction to all the conceivable aspects, both direct andindirect, of the proposed structure of IIITs in a PPP mode by all the stakeholders. Thiswould have required sharing of inputs and series of intensive deliberations. One cannotoverlook the fact that the States contributing 35 per cent of the capital cost, besidesproviding 50-100 acres of land free of cost remain the major stakeholder. Committee’sattention was also drawn towards a list of industry partners identified by the Departmentincluding private industries such as TCS, Infosys, Tata Motors, CK Birla Groups etc. andCentral/State PSUs such as ONGC, NEEPCO, UP Electronics Corporation, HSIDC (Haryana)etc. As the details of discussions held with the private industries and Central/State PSUshave not been shared, the Committee is not aware about their views/suggestions on the Bill.

(Para 2.4)

III. ISSUES OF CONCERN

The Committee strongly feels that there are major shortcomings which relate notonly to the various provisions of the proposed legislation but also have failed to addresssome very crucial aspects which should have been incorporated therein. Another worrisomefactor is that the basic objective of the Bill does not seem to have been carried forwardalong the expected lines as after a period of five years, the governance structure of theIIITs is envisaged to undergo a complete change-over. (Para 3.1)

Scheme of Public-Private-Partnership (PPP) mode in setting up of IIITs

The Committee, taking into account the role assigned to the industry partner,

21

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observes that the proportion of role that is being given to the industry partner isdisproportionately large compared to the contribution it would be making towards the costof establishing the institutions. For five years, contribution of Central and StateGovernment would be 50 and 35 per cent respectively as compared to 15 per centcontribution by industry sector. Not only this, cost of land to be provided by the StateGovernment, if added to their contribution, increases its share considerably. Similarly,Central Government is mandated to provide additional `60 crore. In other words, there isno justifiable comparison between the Centre-State contribution and the one from theindustry partner. The situation becomes somewhat unrealistic in the context of PPP modeas this mode, instead of being a permanent one, can be considered as transitional, becauseafter five years, these institutions are expected to become fully private. Each IIIT will bemeeting its entire operating expenditure on its own, out of student fees, research and otherinternal accruals. The Committee fails to understand the justification for continuing thepublic-private characteristic of IIIT only for five years. These IIITs could have easilycontinued to have the specified role as assigned in the initial stage. With the Institutiontaking roots, it could have started generating its own funds with Central/State sharedecreasing accordingly. Another disturbing feature noticed is that even during the first fiveyears of its existence, the presence of Central and State Governments is simply not therein all the decision-making authorities of the Institute. The Committee can only say that theproposed IIITs would be purely private entities from day one of their existence. The onlysupervisory role is assigned to an internal Committee to review its performance withinseven years and thereafter every five years Central Government has the power torecommend on only policy-related issues. (Para 3.4)

The Committee fails to identify any justification for handing over an institutionestablished with full support from the Central and State Government which continuedundiminished for five years to a private partner having full control of the institution. Inthe name of supervision there is a so-called review by an internal Committee and that tooafter a gap of five years. The Committee is of the firm view that the role of the Centraland the State Government cannot be secondary, tertiary or peripheral to the privateindustry partners, especially in the light of major contribution being from these authorities.The governance structure needs re-consideration more so because the Committeeapprehends that this set of educational institutions might become profit-making businessinstitutions. Therefore, the Central Government and State Governments should not have adiminished role in decision and policy making of these institutions. Presence of bothCentral and State Government has to be there without restrictions of time. (Para 3.5)

The Committee strongly feels that instead of having IIITs under the PPP mode, whatneeds to be encouraged are industry academia collaborations. An individual entity having astake on the ownership might give rise to conflict between the welfare objective of theGovernment and the profit motive of the industry a few years down the line. Nobody candeny the fact that IITs and NITs are functioning remarkably well and are known worldwidefor their excellence despite no industry having a stake in their ownership. In fact,industries now compete to associate themselves with these institutes for the quality ofgraduates they produce every year. (Para 3.7)

The Committee strongly feels that instead of locating industry partners for investingin IIITs, the Bill should suggest locating them for informal and formal collaborations forpurely academic and industrial research-oriented purposes. Industrial training can be madepart of the curriculum in these institutes where industry partners can participate in termsof teaching and imparting practical skills. Similarly, extended industry internship can bemade compulsory for all UG students in their third/fourth year. Private partners can also

23

play a role in sponsoring industry oriented research rather than funding them. Instead ofadministration and management of the Institute, the industry partner should be engaged inpurely academic and research oriented activities. (Para 3.8)

The Committee finds that among the twenty States agreeing to set up IIITs, majorityof States from N-E region, J&K and Uttarakhand have not come forward. Proposal from theState of Madhya Pradesh, already having two well established Centrally-funded IIITs hasalso been approved. Also, major States like Andhra Pradesh, Karnataka, Kerala, Tamil Naduand Maharashtra, having both Government and private technical institutions have showntheir interest by responding with their proposals. The Committee has very seriousapprehensions about the ground-level situation prevailing in majority of technicalinstitutions in such States. Not only considerable number of seats are going vacant, largenumber of students fail to get campus placements. The vision of the proposed IIITs toaddress the challenges faced by the Indian IT industry in terms of domain specific skilldeficit for the growing IT market in India and the world over is well-received. But the factremains that ground level situation should have been the decisive factor for setting up anIIIT. Ideally, a gradual beginning should have been made. In the case of NITs, the existingRECs were converted into statutory bodies with only four pre-identified well-establishedState institutions being given the same status. (Para 3.14)

Issue of Faculty Shortage

It is an undisputed fact that the problem of shortage of faculty persists and ails mostof universities/institutions of the country. The Committee notes that a number of initiativesare proposed to be taken by the Department to tackle this challenge in the proposed IIITs.The various measures proposed to be initiated can only be termed as long-term planningwhose impact will be evident after a considerable time-gap. The Committee fails tounderstand as to how such a major requirement of qualified faculty can be met for as manyas twenty IIITs to be set up in the near future. Not only this, in view of the ever-increasingdemand of IT professionals the world over, chances of young IT students, getting attractivejob offers on completion of their B.Tech courses, going for teaching profession are very less.The Committee strongly feels that merely declaring IIITs as Institutions of NationalImportance will not serve any purpose. The main objective of every educational institutionis to impart quality education to its students and this could be done by qualified andexperienced faculty only. In other words, teachers are the foundation stone on which theedifice of every institution is structured. (Para 3.18)

The Committee is also of the view that other technological interventions, such as theone based on MOOCs (Massive Open Online Courses) run by IITs can prove to be helpfulespecially in view of its likely immediate impact. The Committee can only reiterate thatthis aspect has to be given top priority. The other viable option likely to show immediateresults would be to utilize the services of available teachers to the maximum through meansof information technology like video-conferencing by having the facility of a single teacherteaching the students of more than one IIIT at the same time. (Para 3.19)

Status of Centrally-funded IIITS and the proposed IIITS on PPP Mode

The Committee observes that with the enactment of the proposed legislation, theexisting Centrally funded IIITs as well as the proposed IIITs to be set up on PPP mode willbe having the same status and will be functioning in accordance with the provisions of thenew Act. However, the Committee is surprised to note lack of clarity in view of the existingfour IIITs continuing to get the support of Central funding whereas the proposed IIITs

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would not be getting any financial support at the Central and State level after five years.The Committee understands that Central/State Government nominees would not be havingany hand in decision making in both the categories of IIITs. The Committee fails to findany justified reasons for such a situation. Instead of Central and State Governments beinginvolved in the running of proposed IIITs at par with the industry partners their presenceis proposed to be withdrawn even in the case of existing Centrally-funded IIITs. There doesnot seem to be any rationale for envisaging the governance structure of IIITs in theproposed legislation. (Para 3.23)

Another issue which is somewhat disturbing is the proposal to declare the yet to beestablished IIITs as Institutions of National Importance. The existing Centrally-funded IIITsand the proposed IIITs cannot be treated at equal footing. Over the years IIITs, Allahabad,Gwalior, Jabalpur and Kancheepuram have earned their name with the first three IIITsbeing given the status of deemed-to-be universities. The Committee would appreciate if thisaspect is reviewed by the Department and appropriate decision taken accordingly. (Para 3.24)

IV. CLAUSE 3: DEFINITIONS

Clause 3 deals with definitions. The definition of the term ‘industry partner’, besidestrust and company includes an individual. The Committee is of the opinion that anindividual being considered as an industry partner would not be justified. The Committee,accordingly, recommends deletion of the same. (Para 4.1)

V. CLAUSE 9: INSTITUTE TO BE NOT-FOR-PROFIT LEGAL ENTITY

The Committee is of the view that it should be specifically provided that no part ofthe surplus could be diverted to the industry partner. The Committee, accordingly,recommends the addition of the following proviso to clause 9:

“Provided that no part of such surplus revenue shall be appropriated, distributed ortransferred to its industry partner or to any other person.” (Para 5.2)

VI. CLAUSE 10: INSTITUTE IN PUBLIC-PRIVATE PARTNERSHIP MODE

The Committee notes that this clause does not specify the conditions in case theindustry partner puts forth the proposal to pull out of the joint partnership. It is also silenton a situation arising from the violation of terms and conditions of MoU. The Committeerecommends that relevant provisions in this regard need to be incorporated in the Bill.

(Para 6.2)

VII. CLAUSE 11: ESTABLISHMENT OF INSTITUTE FULLY FUNDED BY CENTRALGOVERNMENT

The Committee observes that Chapter III pertains to establishment of Institutes inpublic-private-partnership mode. Whereas Clause 10 of this Chapter dwells upon IIITs to beestablished under PPP mode, clause 11 refers to IIITs fully funded by Central Government.The Committee strongly feels that governance structure of Centrally-funded and PPP modeinstitutions cannot be on a uniform pattern. Both Central and State Government are themajor stakeholders with industry partner being a smaller partner to them in the case ofPPP mode IIITs. So far as Centrally funded IIITs are concerned, obviously the CentralGovernment is the major stakeholder supported by its State partner. The Committee wouldlike to point out that ideally, there should have been a separate Chapter devoted tomanagement and other allied aspects for the centrally funded IIITs. However, the Bill as

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drafted treats both the two envisaged categories of IIITs on the same footing. What is moredisturbing is that various provisions as formulated clearly indicate that governance edificeis meant for a purely private institution. The Committee expresses its seriousapprehensions on the adverse impact likely to emerge in the near future. The Committeewould appreciate if all the relevant provisions are reviewed so as to bring out the exactset up of both the categories of IIITs. There should not be any scope of ambiguity.

(Para 7.3)

VIII. CLAUSE 12: BOARD OF GOVERNORS

The Committee would like to emphasize that in the case of centrally-fundedinstitutions, nominees of both Central and State Government are to be mandatorily therein all the decision-making bodies. The proposed legislation deals with both centrally-fundedas well as PPP mode IIITs. While the centrally funded IIITs are the total responsibility ofthe Central Government, Centre would be contributing 50 per cent of the infrastructurecost of `128 crore for each IIIT in PPP mode. The Centre will also provide `60.00 crore forfaculty development and up to `10 crore to each such IIIT for the recurring expenditureduring the first five years. State Government will be contributing 35 per cent along with50-100 acres land free of cost. (Para 8.3)

The Committee fails to understand the rationale for not having any nominee fromthe Central and State Government in the Board of Governors. This is all the moresurprising when private institutions like IIIT, Hyderabad and Bangalore have Governmentnominees on their decision-making bodies. The Committee is of the view that nominationof representatives of centrally-funded technical institutions and research laboratories will nodoubt facilitate dissemination of domain-specific expertise. But it cannot in any way takethe place of representation of Government nominee who will be having the authority totake a stand on policy issues. The Committee, accordingly, recommends that composition ofthe Board of Governors may be re-looked into so as to have the required representation ofGovernment nominees both at the Central and State level. (Para 8.4)

IX. CLAUSE 20: REVIEW OF PERFORMANCE OF INSTITUTE

The Committee observes that this Committee shall consist of members of reputefrom relevant fields of teaching, learning and research in the Institute. The Committee isof the view that such an internal Committee would not be in a position to make anobjective assessment. Association of experts from other institutions/universities would makethe composition of such a Committee balanced. However, this provision alone would not beadequate enough. Appropriate step would have been to have an independent body for thispurpose. (Para 9.2)

X. CLAUSE 34: COUNCIL OF INSTITUTES

The Committee observes that the Council is a large body having various categoriesof representatives. However, there is no representation from bodies like UGC and AICTE.UGC is an apex body regulating the entire gamut of higher education and AICTE in thenodal statutory body for technical education. As the proposed IIITs are envisaged to be thepremier technical institutions, it would be appropriate if the representatives of UGC andAICTE are also included in the Council. The Committee would also like to point out thatrepresentation of Members of Parliament is there in similar bodies of all higher educationalinstitutions. However, the same is missing in the Council of IIITs. The Committee is of theview that inclusion of a MP would prove helpful in facilitating the interests of the proposed

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IIITs. The Committee, accordingly, recommends the inclusion of all the above-mentionedauthorities/MPs in the Council of IIITs. (Para 10.4)

XI. CLAUSE 36: FUNCTIONS OF THE COUNCIL

The Committee is apprehensive that with no uniform fee structure for variouscourses in IIITs, any amount of fees could be decided and charged by the respectiveinstitutions which could be a burden on the students, especially the students belonging toeconomically weaker sections. The Committee is of the considered view that there is a needfor having a mechanism for providing uniform fees for all the centrally-funded IIITs andalso in the proposed IIITs. Committee’s attention has been drawn by the functions assignedto the Council of NITs. Out of the various functions, one relates to levying of fees. TheCommittee fails to understand the reason for not assigning this function to the Council ofIIITs. With this function assigned to the Board of every IIIT, there would be neither anyelement of uniformity nor any outer limit on fees to be charged. The Committee is of thefirm view that like NITs, the proposed IIITs have to exercise their main functions underthe Central Body of Council. (Para 11.3)

No Mechanism in the Bill for monitoring/regulating IIITs

The Committee is of the firm view that mere evaluation and review of every IIITafter seven years after its establishment by an internal Committee and thereafter everyfive years cannot take the place of an in-built effective monitoring mechanism having thepresence of independent members for these IIITs. There has to be a balance of autonomyand accountability if these institutions are to set benchmarks for excellence in their domainof specialization. (Para 12.4)

No provision regarding imposition of penalties

The Committee is of the considered view that there might be instances ofcontravention of provisions of the Bill or the MoU, more so in view of the autonomy andflexibility envisaged for IIITs which is likely to increase after five years of their cominginto existence. The Committee strongly feels that a specific provision outlining the kind ofpenalties liable to be imposed in case of non-adherence to the terms and conditions can beeasily incorporated in the Bill. Such a provision is required to be there, keeping in view thekind of autonomy and freedom from bureaucratic control envisaged for the proposed IIITs.The Committee recommends that a specific provision pertaining to penalties, authorityhaving the power to impose the same and the procedure therefor may be incorporated inthe Bill. (Para 12.6)

Absence of Grievance Redressal Mechanism for students and teachers in the Bill

The Committee would like to point out that the Central Universities Act, 2009 hasspecific provisions like ‘Procedure of appeal and arbitration in disciplinary cases againststudents’ and ‘Right to appeal’. Not only this, statutes to be made under the Act are toprovide for the procedure for arbitration in cases of dispute between employees or studentsand the University and also the procedure for appeal to the Executive Council by anyemployee or student against the action of any officer or authority of the University.Similarly, the NIT Act has a provision relating to Tribunal of Arbitration. The Committeefails to understand the reasons for not having similar provisions in the proposed legislation.The Committee recommends that all the required provisions as incorporated in othersimilar Acts may be incorporated in the proposed legislation also. (Para 12.8)

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XIII. CONCLUSION

The Committee, after making an in-depth analysis of the Bill has drawn theattention of the Government to the shortcomings, lack of provisions and contradictionsobserved in the Bill in the Report. The Committee would appreciate that necessarymodifications are brought out in the Bill as recommended by it. The Committee is of thefirm view that the right approach would be to set up the IIITs on the pattern of NITs. TheCommittee would also appreciate if instead of going for twenty IIITs simultaneously, everyproposal is examined from all conceivable angles and only set up thereafter. Number ofproposed IIITs could be less in the process but the objectives will be more than specific,balanced and achievable. (Para 13.1)

MINUTES

IISECOND MEETING

The Committee on Human Resource Development met at 11.00 A.M. on Tuesday, the1st October, 2013 in Main Committee Room, Ground Floor, Parliament House Annexe, New Delhi.

PRESENT

RAJYA SABHA

1. Shri Birender Singh — Chairman

2. Shri A.W. Rabi Bernard

3. Shri Avinash Rai Khanna

4. Dr. Bhalchandra Mungekar

5. Shri Derek O’ Brien

6. Shri Baishnab Parida

7. Chaudhary Munavver Saleem

8. Shri Tarun Vijay

LOK SABHA

9. Shri P.K. Biju

10. Shri Jeetendra Singh Bundela

11. Shrimati Helen Davidson

12. Dr. Charles Dias

13. Shri Virender Kashyap

14. Shri Mahadeo Singh Khandela

15. Shri Prasanta Kumar Majumdar

16. Shri Raghuvir Singh Meena

17. Capt. Jai Narain Prasad Nishad

18. Shri M.K. Raghavan

19. Shri Balkrishna K. Shukla

20. Shri Bhoopendra Singh

21. Ms. Ramya Divya Spandana

22. Shri Manicka Tagore

SECRETARIAT

Shrimati Vandana Garg, Additional Secretary

Shri N.S. Walia, Director

Shri Arun Sharma, Joint Director

Shrimati Himanshi Arya, Assistant Director

Shrimati Harshita Shankar, Assistant Director

31

32

The National Institutes of Technology, Science Education and Research (Amendment)Bill, 2013

I. Department of Higher Education

(i) Shri Ashok Thakur, Secretary

(ii) Ms. Amita Sharma, Additional Secretary

(iii) Shri Alok Mishra, Director

(iv) Shri Rajesh Singh, Director

* * *

III. Indian Institutes of Information Technology Bill, 2013

(i) Shri S.G. Deshmukh, Director, IIIT, Gwalior

2. At the outset, the Chairman welcomed all the members to the meeting of the Committeeconvened to hear the views of the Secretary, Department of Higher Education on the *** ***and Indian Institutes of Information Technology Bill, 2013. *** ***.

3. * * *

4. Thereafter, the Committee heard the views of the Secretary and other officials ofDepartment of Higher Education on the *** *** Indian Institutes of Information TechnologyBill, 2013 followed by presentations on both the Bills. The members raised some queries on boththe Bills which were replied to by the Secretary. The Committee decided to forward questionnaireon both the Bills to the Department of Higher Education for their written comments.

5. The Committee then adjourned at 2.10 P.M. to meet again at 3.00 P.M. on the 10th October, 2013.

*** Relates to other matters.

33

IIITHIRD MEETING

The Committee on Human Resource Development met at 3.00 P.M. on Thursday, the10th October, 2013 in Committee Room ‘A’, Ground Floor, Parliament House Annexe, New Delhi.

PRESENT

RAJYA SABHA

1. Shri Birender Singh — Chairman

2. Shri A.W. Rabi Bernard

3. Shri Avinash Rai Khanna

4. Shri Rama Chandra Khuntia

5. Dr. Bhalchandra Mungekar

6. Shri Baishnab Parida

7. Chaudhary Munavver Saleem

LOK SABHA

8. Shri P.K. Biju

9. Shrimati Helen Davidson

10. Shri Kapil Muni Karwariya

11. Shri Virender Kashyap

12. Shri Mahadeo Singh Khandela

13. Shri Prasanta Kumar Majumdar

14. Shri Raghuvir Singh Meena

15. Capt. Jai Narain Prasad Nishad

16. Shri M.K. Raghavan

17. Ms. Ramya Divya Spandana

18. Shri Manicka Tagore

SECRETARIAT

Shrimati Vandana Garg, Additional Secretary

Shri N.S. Walia, Director

Shri Arun Sharma, Joint Director

Shrimati Harshita Shankar, Assistant Director

THE INDIAN INSTITUTES OF INFORMATION TECHNOLOGY BILL, 2013

I. Department of Higher Education

(i) Ms. Amita Sharma, Additional Secretary

(iii) Shri Alok Mishra, Director

33

34

II. Representatives of IIITs

(i) Prof. P.J. Narayanan, Director, IIIT, Hyderabad

(ii) Shri Rajagopalan, Professor, IIIT, Bangalore

(ii) Shri Pankaj Jalote, Director, IIIT, Delhi

(iv) Prof. S.G. Deshmukh, Director, IIIT, Gwalior

(v) Dr. Jayanti Ravi, Commissioner, Technical Education, Government of Gujarat

(vi) Prof. Rajeev Sangal, Director, IIT (BHU), Varanasi

* * *

2. At the outset, the Chairman welcomed all the members to the meeting of the Committeeconvened to hear the Additional Secretary, Department of Higher Education along with therepresentatives of International Institutes of Information Technology, Bangalore and Hyderabad onthe Indian Institutes of Information Technology Bill, 2013 *** *** ***.

3. The representatives of International Institutes of Information Technology, Hyderabad andBangalore then gave a presentation before the Committee, outlining the distinct features of theirrespective institutions and also gave their views on the Bill before the Committee. Members raisedsome queries on the Bill which were replied to by the Additional Secretary and the representativesof the Institutes of Hyderabad and Bangalore. The Committee decided to forward a list of issuesraised on the various provisions of the Bill to the Department of Higher Education for their writtencomments.

4. * * *

5. The Committee then adjourned at 6.10 P.M. to meet again at 11.00 A.M. on the 17th October, 2013.

*** Relates to other matters.

35

IVFOURTH MEETING

The Committee on Human Resource Development met at 2.00 P.M. on Wednesday, the5th December, 2013 in Committee Room ‘A’, Ground Floor, Parliament House Annexe, New Delhi.

PRESENT

RAJYA SABHA

1. Shri Birender Singh — Chairman

2. Shri Avinash Rai Khanna

3. Shri Derek O’ Brien

4. Shri Baishnab Parida

5. Chaudhary Munavver Saleem

6. Dr. Janardhan Waghmare

LOK SABHA

7. Shri P.K. Biju

8. Dr. Charles Dias

9. Shri Virender Kashyap

10. Shri Mahadeo Singh Khandela

11. Shri N. Peethambara Kurup

12. Shri Prasanta Kumar Majumdar

13. Shri Raghuvir Singh Meena

14. Shri Balkrishna K. Shukla

15. Ms. Ramya Divya Spandana

SECRETARIAT

Shrimati Vandana Garg, Additional Secretary

Shri N.S. Walia, Director

Shri Arun Sharma, Joint Director

Shrimati Himanshi Arya, Assistant Director

Shrimati Harshita Shankar, Assistant Director

THE INDIAN INSTITUTES OF INFORMATION TECHNOLOGY BILL, 2013

I. Department of Higher Education

(i) Shri Ashok Thakur, Secretary

(ii) Ms. Amita Sharma, Additional Secretary

(iii) Shri Alok Mishra, Director

35

36

II. Representatives of IIITs

(i) Prof. P.J. Narayanan, Director, IIIT, Hyderabad

(ii) Shri Rajagopalan, Professor, IIIT, Bangalore

(iii) Shri S.G. Deshmukh, IIIT, Gwalior

(iv) Shri Rajeev Sangal, Director, IIIT, BHU

(v) Shri Rajeeva Swarup, Principal Secretary, HE, Government of Rajasthan

2. At the outset, the Chairman welcomed all the members to the meeting of the Committeeconvened to hear the views of the Secretary, Department of Higher Education on certain issues onthe Indian Institutes of Information Technology Bill, 2013 and *** *** ***.

3. * * *

4. * * *

5. Thereafter, the Committee heard the views of the Secretary, Department of HigherEducation on the issues/areas of concern in the Indian Institutes of Information Technology Bill,2013 which were clarified by the Secretary and other officials of the Department. *** ***.

6. The Committee then adjourned at 4.25 P.M.

*** Relates to other matters.

37

VFIFTH MEETING

The Committee on Human Resource Development met at 2.00 P.M. on Thursday, the12th December, 2013 in Room No. ‘63’, First Floor, Parliament House, New Delhi.

PRESENT

RAJYA SABHA

1. Shri Birender Singh — Chairman

2. Shri A.W. Rabi Bernard

3. Shri Rama Chandra Khuntia

4. Dr. Bhalchandra Mungekar

5. Shri Baishnab Parida

6. Dr. Janardhan Waghmare

LOK SABHA

7. Shri P.K. Biju

8. Dr. Charles Dias

9. Shri Virender Kashyap

10. Shri Mahadeo Singh Khandela

11. Shri Raghuvir Singh Meena

SECRETARIAT

Shrimati Vandana Garg, Additional Secretary

Shri N.S. Walia, Director

Shri Arun Sharma, Joint Director

Shrimati Himanshi Arya, Assistant Director

Shrimati Harshita Shankar, Assistant Director

2. At the outset, the Chairman welcomed the Members to the meeting of the Committee toconsider and adopt draft 260th Report on the Indian Institutes of Information Technology Bill, 2013.

3. The Committee, then, considered and adopted the draft 260th Report on the Indian Institutesof Information Technology Bill, 2013. Shri P.K. Biju, M.P., Lok Sabha submitted his note of dissenton the Bill.

4. The Committee decided to present/lay the above mentioned Report in both the Housesof Parliament on 13th December, 2013. The Committee authorized the Chairman and in his absenceShri Rama Chandra Khuntia, M.P. Rajya Sabha and in the absence of both, Dr. Janardhan Waghmare,M.P. Rajya Sabha to present the Report in the Rajya Sabha and Shri P.K. Biju, M.P., Lok Sabha andin his absence Dr. Charles Dias, M.P. Lok Sabha to lay the Report in the Lok Sabha.

6. The Committee then adjourned at 2.55. P.M.

37

ANNEXURES

41

18 March, 2013

AS INTRODUCED IN LOK SABHA

Bill No. 38 of 2013

THE INDIAN INSTITUTES OF INFORMATION TECHNOLOGYBILL, 2013

ARRANGEMENT OF CLAUSES

CHAPTER I

PRELIMINARY

CLAUSES

1. Short title and commencement.2. Declaration of certain institutions as institutions of national importance.3. Definitions.

CHAPTER II

THE INSTITUTES

4. Establishment and incorporation of Institutes.5. Effect of incorporation of Institutes.6. Objects of Institute.7. Powers and functions of Institutes.8. Institute to be open to all races, creeds and classes.9. Institute to be not-for-profit legal entity.

CHAPTER III

ESTABLISHMENT OF INSTITUTES IN PUBLIC-PRIVATE PARTNERSHIP MODE

10. Institute in public-private partnership mode.11. Establishment of Institute fully funded by Central Government.

CHAPTER IV

THE AUTHORITIES OF INSTITUTES

12. Board of Governors.13. Term of office of, vacancies among, and allowances payable to, members of Board.14. Powers and functions of Board.15. Senate.16. Powers and functions of Senate.17. Research Council.18. Director.19. Other Committees and authorities.20. Review of performance of Institute.

42

CHAPTER VACCOUNTS AND AUDIT

CLAUSES

21. Grants by Central Government.

22. Fund of Institute.

23. Statutes.

24. Statutes how to be made.

25. Ordinances.

26. Ordinances how to be made.

27. Annual accounts and balance sheet.

28. Books of account to be maintained by Institute.

29. Appointment of auditors.

30. Annual report of Director.

31. Annual meeting of Board to consider statement of accounts.

32. Annual statement of accounts of Institutes fully funded by Central Government.

33. Annual report of each Institute.

CHAPTER VITHE COUNCIL

34. Council of Institutes.

35. Term of office and allowances payable to members of Council.

36. Functions of Council.

CHAPTER VIII

MISCELLANEOUS

37. Acts and proceedings not to be invalidated by vacancies, etc.

38. Returns and information to be provided to Central Government or State Government.

39. Powers of Central Government to issue directions.

40. Institute to be public authority under Right to Information Act.

41. Power of Central Government to make rules.

42. Transitional provisions.

43. Power to remove difficulties.

44. Laying of rules and notifications.

THE SCHEDULE.

43

AS INTRODUCED IN LOK SABHA

ON 26TH NOVEMBER, 2012

Bill No. 38 of 2013

THE INDIAN INSTITUTES OF INFORMATION TECHNOLOGYBILL, 2013

A

BILL

to declare certain institutions of information technology to beinstitutions of national importance with a view to developnew knowledge in information technology and to providemanpower of global standards for the information technologyindustry and to establish other Institutions of InformationTechnology and to provide for certain other matters connectedwith such institutions or incidental thereto.

BE it enacted by Parliament in the Sixty-fourth Year of theRepublic of India as follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Indian Institutes ofInformation Technology Act, 2013.

(2) It shall come into force on such date as the CentralGovernment may, by notification in the Official Gazette, appoint.

2. Whereas the objects of the institutes mentioned in theSchedule are such as to make them institutions of nationalimportance, it is hereby declared that each such institute is aninstitution of national importance.

43

Short title andcommencement.

Declaration ofcertaininstitutions asinstitutions ofnationalimportance.

44

3. In this Act, unless the context otherwise requires,—

(a) “appointed day” means the date of establishment ofthe Indian Institute of Information Technology establishedunder clause (b) of sub-section (1) of section 4;

(b) “Board”, in relation to any Institute, means theBoard of Governors referred to in sub-section (1) of section 12;

(c) “Chairperson” means the Chairperson of the Boardappointed under sub-section (2) of section 12;

(d) “Council” means the Council established under sub-section (1) of section 34;

(e) “Director” means the Director of the Institute;

(f) “existing Institute” means the Institute mentioned incolumn (3) of the Schedule;

(g) “industry partner” means an individual, or a trustestablished under the Indian Trusts Act, 1882, or companyestablished under the Companies Act, 1956, or society formedand registered under the Societies Registration Act, 1860, ora combination of one or more of such industry partner,having interest in the information technology industry orrelated areas, and providing, under a scheme of the CentralGovernment, funds for capital investment for establishment ofan Institute and for its maintenance;

(h) “Institute” means any of the institutions mentionedin column (5) of the Schedule and such other Institutesestablished under section 10 or section 11;

(i) “notification” means a notification published in theOfficial Gazette and the expression “notify” shall be construedaccordingly;

(j) “prescribed” means prescribed by rules made underthis Act;

(k) “public-private partnership mode” means suchpartnership under a scheme of the Central Government whichprovides for establishment of Institute involving collaborationbetween the Central Government, State Government and theindustry partner;

(l) “Schedule” means the Schedule to this Act;

(m) “Senate”, in relation to any Institute, means theSenate thereof;

(n) “Statutes” and “Ordinances”, in relation to anyInstitute, mean the Statutes and Ordinances of that Institutemade under this Act.

Definitions.

2 of 1882.

1 of 1956

21 of 1860.

45

CHAPTER II

THE INSTITUTES

4. (1) (a) On and from the commencement of this Act, everyexisting Institute, shall be a body corporate by the same name asmentioned in column (5) of the said Schedule.

(b) On and from the appointed day, any other Instituteof Information Technology as may be established undersection 10 or section 11 shall be a body corporate by suchname as the Central Government may notify.

(2) Every existing Institute or any Institute established underclause (b) of sub-section (1) shall have perpetual succession and acommon seal, with power, subject to the provisions of this Act, toacquire, hold and dispose of property, both movable and immovable,and to contract, and shall, by its name, sue or be sued.

5. On and from the date of commencement of this Act,—

(a) any reference to any existing Institute in anycontract or other instrument shall be deemed as a referenceto the corresponding Institute mentioned in column (5) of theSchedule;

(b) all properties, movable and immovable, of orbelonging to every existing Institute shall vest in thecorresponding Institute mentioned in column (5) of theSchedule;

(c) all the rights, debts and other liabilities of everyexisting Institute shall be transferred to, and be the rightsand liabilities of, the corresponding Institute mentioned incolumn (5) of the Schedule;

(d) every person employed by any existing Institute,immediately before such commencement, shall hold his officeor service in the corresponding Institute mentioned incolumn (5) of the Schedule, by the same tenure, at the sameremuneration and upon the same terms and conditions andwith the same rights and privileges as to pension, leave,gratuity, provident fund and other matters as he would haveheld the same if this Act had not been enacted and shallcontinue to do so unless and until his employment isterminated or until such tenure, remuneration and the termsand conditions are duly altered by the Statutes:

Provided that if the alteration so made is not acceptableto such employee, his employment may be terminated by theInstitute in accordance with the terms of the contract withthe employee or, if no provision is made therein in this behalf,on payment to him by the Institute of compensationequivalent to three months’ remuneration in case of permanent

Establishmentandincorporationof Institutes.

Effect ofincorporationof Institutes.

46

employees and one month’s remuneration in the case of otheremployees:

Provided further that any reference, by whatever formof words, to the Director, Registrar or other officer of anyexisting Institute mentioned in column (3) of the Schedule inany law for the time being in force, or in any instrument orother document, shall be deemed as a reference to theDirector, Registrar or other officer of the correspondingInstitute mentioned in column (5) of the Schedule;

(e) every person pursuing any academic or researchcourse, immediately before such commencement in anyexisting Institute, shall be deemed to have registered with thecorresponding Institute mentioned in column (5) of the saidSchedule at the same level of course in such Institute;

(f) all suits and other legal proceedings instituted by oragainst the existing Institute, immediately before suchcommencement, may continue by or against thecorresponding Institute mentioned in column (5) of theSchedule.

6. The objects of every Institute shall be to––

(a) emerge as one amongst the foremost institutions ininformation technology and allied fields of knowledge;

(b) advance new knowledge and innovation ininformation technology and allied fields to empower the nationto the forefront in the global context;

(c) develop competent and capable youth imbued withthe spirit of innovation and entrepreneurship with the socialand environmental orientation to meet the knowledge needs ofthe country and provide global leadership in informationtechnology and allied fields;

(d) promote and provide transparency of highest orderin matters of admission, appointment to various positions,academic evaluation, administration and finance.

7. Subject to the provisions of this Act, every Institute shallexercise the following powers and functions, namely:—

(a) to provide for instructions in such fields ofknowledge relating to information technology and allied areasas the Institute may think fit, for the advancement of learningand dissemination of knowledge;

(b) to lead, organise and conduct research andinnovation in information technology and allied fields ofknowledge in such manner as the Institute may think fit,including collaboration or association with any other Institute,educational institution, research organisation or body corporate;

Objects ofInstitute.

Powers andfunctions ofInstitutes.

47

(c) to hold examinations and grant degrees, diplomasand other academic distinctions or titles and to conferhonorary degree;

(d) to institute teaching, research or other academicpositions, required by the Institute with such designations asit may deem fit, and to appoint persons on tenure, term orotherwise to such positions;

(e) to appoint persons working in any other Institute oreducational institution or involved in research of significancein any industry as adjunct, guest or visiting faculty of theInstitute on such terms and for such duration as the Institutemay decide;

(f) to create administrative and other posts and to makeappointments thereto;

(g) to make provision for dissemination of knowledgeemerging from research and for that purpose to enter intosuch arrangements, including consultancy and advisoryservices, with other institutions, industry, civil society orother organisations, as the Institute may consider necessary;

(h) to determine, specify and receive payment of feesand other charges, as the Institute may deem fit, fromstudents and any other person, institution or body corporatefor instructions and other services, including training,consultancy and advisory services, provided by the Institute;

(i) to deal with any property belonging to, or vested in,the Institute in such manner as the Institute may deem fit foradvancement of the objects of the Institute:

Provided that no land or other immovable property shallbe disposed of by the Institute without the prior approval ofthe Central Government:

Provided further that where the land for the Institutehas been provided free of cost by a State Government, suchland may be disposed of only with the prior approval of suchState Government;

(j) to receive gifts, grants, donations or benefactionsfrom the Government and to receive bequests, donations andtransfer of movable or immovable properties from testators,donors or transferors, as the case may be;

(k) to establish and maintain such infrastructure as maybe necessary;

(l) to institute and award fellowships, scholarships,exhibitions, prizes and medals; and

(m) to do all such things as may be necessary,incidental or conducive to the attainment of all or any of theobjects of the Institute.

48

8. (1) Every Institute shall be open to all persons of eithersex, irrespective of caste, creed, race, religion, disability, domicile,social or economic background.

(2) Admissions to every course or programme of study ineach Institute shall be based on merit assessed through transparentand reasonable criteria disclosed through its prospectus, prior to thecommencement of the process of admission by such Institute:

Provided that every such Institute shall be a CentralEducational Institution for the purposes of the Central EducationalInstitutions (Reservation in Admission) Act, 2006.

9. Every Institute shall be a not-for-profit legal entity and nopart of the surplus, if any, in revenue of such Institute, aftermeeting all expenditure in regard to its operations under this Act,shall be invested for any purpose other than for the growth anddevelopment of such Institute or for conducting research therein.

CHAPTER III

ESTABLISHMENT OF INSTITUTES IN PUBLIC-PRIVATE-PARTNERSHIP MODE

10. (1) A State Government may establish an Institute underthis Act.

(2) For the purposes of establishment of an Institute in thepublic-private-partnership mode, a State Government shall identifyan industry partner for collaboration and submit a proposal to theCentral Government in such form and manner as may beprescribed.

(3) The Central Government shall examine the proposal on thebasis of such criteria as may be prescribed and such criteria shallinclude the following, namely:—

(a) the investment of capital required for establishingthe proposed Institute and its phasing;

(b) the expertise and standing of the industry partnerreferred to in sub-section (2) in the field of informationtechnology;

(c) the assessment of the capability, financial and otherresources of the industry partner to support the Institute;

(d) the availability of adequate land free of cost forestablishment of the Institute;

(e) the availability of, or the commitment of the StateGovernment to make available, adequate physical and socialinfrastructure at the proposed site for establishment of theInstitute;

(f) the commitment of the concerned State Governmentand the industry partner for supporting the Institute after itsestablishment.

Institute tobe open to allraces, creedsand classes.

Institute inpublic-private-partnershipmode.

5 of 2007.

Institute tobe not-for-profit legalentity.

49

(4) The Central Government with the concurrence of theconcerned State Government may suggest modifications to theproposal submitted to it under sub-section (2), if any.

(5) The Central Government shall, on acceptance of theproposal with modifications, if any, under sub-section (4), enter intoa memorandum of understanding or an agreement with theconcerned State Government and the industry partner for theestablishment of the proposed Institute, subject to the provisions ofthis Act and the rules made thereunder.

(6) Every memorandum of understanding or agreementreferred to in sub-section (5) shall contain,—

(a) the investment of capital in establishment of theInstitute, the respective shares in such investment of capitalof the Central Government, the concerned State Governmentand the industry partner, and the phasing of such capitalinvestment over a period of five years;

(b) the first Statutes of the Institute;

(c) the commitment of the Central Government, theconcerned State Government and the industry partner inensuring autonomy to the proposed Institute.

(7) Where a proposal submitted by the State Governmentunder sub-section (2) is not acceptable to the Central Government,it shall communicate its decision to that State Government,specifying the reasons for such decision.

11. (1) The Central Government may establish an Institutefully funded by it.

(2) Nothing contained in section 10 shall apply to an Instituteestablished by the Central Government under sub-section (1).

CHAPTER IV

THE AUTHORITIES OF INSTITUTES

12. (1) The Board of Governors of each Institute shall be theprincipal executive body of that Institute.

(2) The Board of Governors of each Institute shall consist ofthe following members, namely:—

(a) a Chairperson, to be appointed by the Institute asprovided in sub-section (3);

(b) two persons from the industry in the field ofinformation technology, to be appointed by the Institute asprovided in sub-section (5);

(c) two persons from leading research laboratorieshaving research interests in the field of information

Establishmentof Institutefully fundedby CentralGovernment.

Board ofGovernors.

50

technology, to be appointed by the Institute as provided insub-section (6);

(d) two persons having special knowledge or practicalexperience in respect of education or engineering, to beappointed by the Institute as provided in sub-section (6);

(e) two persons from amongst faculty members of theInstitute to be nominated by the Chairperson in consultationwith the Director and two senior most Deans of the Institute;

(f) the Director of the Indian Institute of Technologylocated in the zone in which the Institute is located, ex-officio;

Explanation.—For the purposes of this clause, “zone” shallhave the same meaning as assigned to it in the Explanation tosection 11 of the Institutes of Technology Act, 1961;

(g) the Vice-Chancellor of a University in the State, tobe nominated by the State Government in which the Instituteis located, ex-officio;

(h) one person to represent the Scheduled Castes or theScheduled Tribes to be nominated by the State Government;

(i) the Director of the National Institute of Technologyof the State in which the Institute is located, ex officio;

(j) two senior most Deans of the Institute;

(k) the Director of the Institute who shall be itsMember-Secretary.

(3) The Chairperson shall be appointed by the Institute froma panel of three names recommended by a Search-cum-SelectionCommittee consisting of—

(a) a nominee of the Central Government who shall bea person of eminence in academia in the field of engineeringor science;

(b) a nominee of the State Government who shall be aperson of eminence in academia in the field of informationtechnology; and

(c) a nominee of the Central Government, in case of anInstitute fully funded by the Central Government, or by theindustry partner, in case of an Institute established in thepublic-private partnership mode, to represent industry.

(4) The Director of the Institute shall be the convenor of themeetings of the Search-cum-Selection Committee but shall notparticipate in its deliberations.

(5) A member of the Board referred to in clause (b) of sub-section (2) shall be appointed by the Institute on approval of a

59 of 1961.

51

specific name by the Board from a panel of names recommended bythe Central Government, in case of an Institute fully funded by theCentral Government, or by the industry partner, in case of anInstitute established in the public-private-partnership mode.

(6) A member of the Board referred to in clause (c) orclause (d) of sub-section (2) shall be appointed by the Institute onapproval of a specific name by the Board from a panel of namesrecommended by the Council.

13. (1) Save as otherwise provided in this section, the termof office of the Chairperson or any other member of the Board,other than an ex-officio member, shall be for a period of five yearsfrom the date of his nomination.

(2) The term of office of an ex-officio member shall continueso long as he holds the office by virtue of which he is a member.

(3) The term of office of a member nominated under clause(e) of sub-section (2) of section 12 shall be for a period of twoyears from the date of his nomination.

(4) A member of the Board, other than an ex-officio member,who fails to attend three consecutive meetings of the Board, shallcease to be a member of the Board.

(5) Members of the Board shall be entitled to suchallowances, as may be specified in the Statutes, for attendingmeetings of the Board or as may be convened by the Institute.

14. (1) Subject to the provisions of this Act, the Board ofevery Institute shall be responsible for the general superintendence,direction and control of the affairs of the Institute and shall have thepower to frame, amend, modify or rescind the Statutes and theOrdinances governing the affairs of the Institute to achieve theobjects specified in section 6.

(2) Without prejudice to the provisions of sub-section (1), theBoard shall have the following powers, namely:-—

(a) to decide questions of policy relating to theadministration and working of the Institute;

(b) to make Statutes governing the administration,management and operations of the Institute;

(c) to examine and approve the annual budget estimatesof the Institute;

(d) to examine and approve the plan for development ofthe Institute and to identify sources of finance forimplementation of the plan;

(e) to establish departments, faculties or schools ofstudies and initiate programmes or courses of study at theInstitute;

Term of officeof, vacanciesamong, anda l l o w a n c e spayable to,members ofBoard.

Powers andfunctions ofBoard.

52

(f) to create teaching and other academic posts, todetermine the number of such posts and emoluments thereofand to define the duties and conditions of service of teachersand other academic staff:

Provided that the Board shall not take action otherwisethan on consideration of the recommendations of the Senate;

(g) to provide, by the Statutes, the qualifications,criteria and processes for appointment to teaching and otherposts in the Institute;

(h) to fix, by the Statutes, fees and other chargespayable for pursuit of courses or programmes in the Institute;

(i) to exercise such other powers and perform suchother duties as may be conferred or imposed by this Act orthe Statutes.

(3) The Board may, subject to the provisions of this Act andthe Statutes, delegate such powers and functions to the Senate, theResearch Council, or to the Director or other officer of theInstitution as the Board may deem fit.

(4) The Board shall conduct an annual review of theperformance of the Director with specific reference to his leadershipin the achievement of the objects of the Institute.

(5) The Board shall in exercise of the powers and dischargeof functions strive to provide autonomy in academic matters to theSenate and departments or faculties or schools, as the case may be.

(6) Where in the opinion of the Chairperson, the situation isso emergent that an immediate action needs to be taken in theinterest of the Institute, the Chairperson in consultation with theDirector, may, after recording the reasons for his opinion, issuesuch order, as he thinks fit:

Provided that such orders shall be submitted for ratification ofthe Board in the next meeting.

15. (1) The Senate of every Institute shall consist of thefollowing persons, namely:–

(a) the Director of the Institute who shall be theChairperson of the Senate;

(b) heads of all departments, faculties or schools, asthe case may be, comprising the Institute;

(c) Deans in charge of academic, research and studentaffairs in the Institute;

(d) six members of faculty from amongst theProfessors of the Institute to be nominated by the Board;

Senate.

53

(e) three persons of eminence in the field of educationhaving knowledge of inter-disciplinary field, to be nominatedby the Board; Senate.

(f) three persons of eminence from the fields ofresearch in information technology or related fields, to benominated by the Board;

(g) such other persons to be nominated by the Board toprovide representation in such fields of knowledge ortechnology which, in its opinion, are not adequatelyrepresented.

(2) The term of office of an ex officio member shall continueso long as he holds the office by virtue of which he is a member.

(3) The term of office of a member nominated underclauses (d) to (f) of sub-section (1) shall be for a period of threeyears from the date of his nomination.

(4) A member of the Senate under clauses (d) to (f) of sub-section (1) who fails to attend three consecutive meetings of theBoard, shall cease to be a member of the Board.

16. (1) Subject to the provisions of this Act, the Statutes andthe Ordinances, the Senate shall be the principal academic body ofthe Institute and shall have the power to enact, amend or modify theOrdinances governing academic matters and the affairs and welfareof students of the Institute.

(2) Without prejudice to the provisions of sub-section (1), theSenate shall have the following powers, namely:—

(a) to specify the criteria and procedure for admissionto courses or programmes of study offered by the Institute;

(b) to recommend the Board to institute teaching andother academic posts, determination of their number andemoluments and defining the duties and conditions of serviceof teachers and other academic posts;

(c) to recommend the Board about commencement ofnew programmes or courses of study;

(d) to specify the broad academic content ofprogrammes and courses of study and to suggest modifications,if any;

(e) to specify the academic calendar and approve grantof degrees, diplomas and other academic distinctions or titles;

(f) to exercise such other powers and discharge suchother functions as may be assigned to it, in the Statutes, bythe Board.

Powers andfunctions ofSenate.

54

17. (1) Every Institute shall establish a Research Councilcomprising of the Director and such other members, as may bespecified in the Statutes by the Board.

(2) The Research Council of every Institute shall—

(i) interface with research funding organisations,industry and civil society to identify potential areas forresearch;

(ii) organise and promote research in such Institute orin collaboration with any institution of higher learning orresearch laboratories;

(iii) assist teachers in obtaining funding from externalsources for research projects prepared by them;

(iv) provide, out of the funds placed at its disposal bythe Board, research resources and grant assistance forresearch projects proposed to be undertaken by teachers insuch Institute;

(v) provide for incubation of technology applicationsemerging from research and to protect and utilise theintellectual property obtained from research in the Institute;

(vi) make provisions for research and advisory servicesand for that purpose enter into such arrangements with otherinstitutions, industry, civil society or other organisations andenable the research to be disseminated to industry and societythrough such arrangements;

(vii) exercise such other powers and perform suchother functions as may be assigned to it by the Statutes.

18. (1) The Director shall be the principal executive officer ofevery Institute and shall be responsible for implementation of thedecisions of the Board and Senate and for the day-to-dayadministration of the Institute.

(2) The Director shall exercise such other powers anddischarge such other duties as may be assigned to him by this Actor the Statutes or Ordinances or delegated by the Board or theSenate.

(3) The Director shall be appointed by the Board from a panelof names recommended by a Search-cum-Selection Committeeconsisting of—

(a) the Chairperson of the Board;

(b) the Director of the Indian Institute of Technologyof the zone in which the Institute is located;

(c) the nominee of the Central Government, in case ofan Institute fully funded by the Central Government, who

ResearchCouncil.

Director.

55

shall be a person of eminence in academia in the field ofinformation technology;

(d) three nominees, one each from the CentralGovernment, the concerned State Government, each of whomshall be a person of eminence in academia in the field ofinformation technology, and a nominee of the industry partnerfrom the information technology industry, in the case of anInstitute established in the public-private partnership mode.

(4) The Director shall, except on account of resignation orremoval, hold office for a period of five years from the date onwhich he enters upon his office.

(5) The Director may, by notice in writing under his handaddressed to the Chairperson, resign from his office.

(6) The Director may be removed by the Board on provencharges of misbehaviour or misconduct:

Provided that the Director shall not be removed from hisoffice, except by an order made by the Board after an inquiryinstituted in this behalf by the Board, and after giving him areasonable opportunity of being heard:

Provided further that where the institution of an inquiry orremoval of the Director is being considered by the Board, theDirector shall refrain himself from the proceedings of the Board.

(7) The Board may remove the Director from office, if it isdissatisfied with the functioning of the Institute after review of theaffairs of the Institute under sub section (6).

(8) The Board shall initiate the process of appointment inrespect of any vacancy due to arise for the post of Director oncompletion of tenure before a period of six months from the dateof arising of such vacancy:

Provided that the process of appointment shall be completedbefore such vacancy arises.

(9) Where any casual vacancy has occurred for the post ofDirector, the process of appointment in respect of such vacancyshall be completed within a period of three months from the date ofsuch vacancy.

19. (1) The constituion, powers and functions of the otherauthorities as may be declared by the Statutes shall be such as maybe provided by the Statutes.

(2) The Board may constitute such Committees, as it maydeem fit, for efficient management of affairs of the Institute.

20. (1) Every Institute shall, within seven years from the dateof establishment and incorporation of such Institute under this Actand thereafter at the expiration of every fifth year, constitute, with

OtherCommitteesand authorities.

Review ofperformanceof Institute.

56

the prior approval of the Central Government, a Committee toevaluate and review the performance of such Institute inachievement of its objects during the said period.

(2) The Committee constituted under sub-section (1) shallconsist of members of repute in academia or industry, from relevantfields of teaching, learning and research in such Institute.

(3) The Committee shall assess the performance of Instituteand make recommendations on—

(a) the extent of fulfilment of the objects of theInstitute mentioned in section 6 and its contribution to thesociety;

(b) the promotion of transformational research and itsimpact on industry or society;

(c) the advancement of fundamental research;

(d) the establishment of the Institute as amongst theglobal leaders in the area of information technology;

(e) the extent of achievement of social equality througheducation and research in the Institute; and

(f) such other parameters as the Board may considernecessary and specify.

(4) The Board shall consider the recommendations referred toin sub-section (3) and take such action as it may deem fit:

Provided that the recommendations of the Committee alongwith an explanatory memorandum on the action taken or proposedto be taken, specifying the reasons thereof, shall be submitted to theCentral Government or to the State Government in case of anInstitute established under section 10 in the public-privatepartnership mode and the Central Government or the StateGovernment, as the case may be, shall cause such recommendationsto be laid before each House of Parliament or the State Legislature.

(5) The Central Government shall have the power to givesuch directions, emanating from the recommendations of theCommittee, on policy relating to national purposes, as it may deemfit, and the Institute shall comply with such directions:

Provided that if any dispute arises as to whether the directionis a question of policy relating to national purpose or not, thedecision of the Central Government shall be final.

CHAPTER V

ACCOUNTS AND AUDIT

21. (1) The Central Government may, after due appropriationmade by Parliament by law in this behalf, make to each Institute,which is fully funded by the Central Government, grants of such

Grants by theCentralGovernment.

57

sums of money as are required for supporting the Institute for itsoperation, management and maintenance.

(2) The Central Government shall provide to each Institute,including Institutes established in the public-private-partnershipmode, grants of such sums of money as are required to meet theexpenditure on scholarships or fellowships instituted by it, includingscholarships or fellowships for students from socially andeducationally backward classes or categories of citizens enrolled insuch Institute.

22. (1) Every Institute shall maintain a fund to which shall becredited—

(a) all monies provided by the Central Government orthe State Government or industry partner, as the case may be;

(b) all fees and other charges received by the Institute;

(c) all monies received by the Institute by way ofgrants, gifts, donations, benefactions, bequests or transfers;

(d) all monies received by the Institute from utilisationof intellectual property arising from research conducted orprovision of advisory or consultancy services by it; and

(e) all monies received by the Institute in any othermanner or from any other source.

(2) The fund of every Institute shall be applied towardsmeeting the expenses of the Institute including expenses incurred inthe exercise of its powers and discharge of its duties under this Act,furtherance of research in the Institute or in collaboration with othereducational institutions or industry and for capital investment aimedat the growth and development of the Institute.

23. Subject to the provisions of this Act, the Statutes mayprovide for all or any of the following matters, namely:—

(a) the conferment of honorary degrees;

(b) the formation of departments of teaching;

(c) the fees to be charged for courses of study in theInstitute and for admission to the examinations of degrees anddiplomas of the Institute;

(d) the institution of fellowships, scholarships,exhibitions, medals and prizes;

(e) the term of office and the method of appointmentof officers of the Institute;

(f) the qualifications of teachers of the Institute;

(g) the classification, the method of appointment andthe determination of the terms and conditions of service ofteachers and other staff of the Institute;

Fund ofInstitute.

Statutes.

58

(h) the constitution of pension, insurance and providentfunds for the benefit of the officers, teachers and other staffof the Institute;

(i) the constitution, powers and duties of the authoritiesof the Institute;

(j) the establishment and maintenance of halls andhostels;

(k) the conditions of residence of students of theInstitute and the levying of fees for residence in the halls andhostels and or other charges;

(l) the allowances to be paid to the Chairperson andmembers of the Board;

(m) the authentication of the orders and decisions ofthe Board;

(n) the meetings of the Board, the Senate, or anyCommittee, the quorum at such meetings and the procedureto be followed in the conduct of their business; and

(o) any other matter which is required to be or may bespecified by Statutes or in respect of which provision is to bemade by Statutes.

24. (1) The first Statutes of each Institute shall be framed bythe Board with the prior approval of the Central Government and acopy of the same shall be laid, as soon as may be, before eachHouse of Parliament.

(2) The Board may, from time to time, make new oradditional Statutes or may amend or repeal the Statutes in themanner provided in this section.

(3) Every new Statute or addition to the Statutes or anyamendment or repeal of Statutes shall require the previous approvalof the Central Government.

25. Subject to the provisions of this Act and the Statutes, theOrdinances of every Institute may provide for all or any of thefollowing matters, namely:—

(a) the admission of the students to the Institute;

(b) the courses of study to be laid down for all degreesand diplomas of the Institute;

(c) the conditions under which students shall beadmitted to the degree or diploma courses and to theexaminations of the Institute, and shall be eligible for degreesand diplomas;

(d) the conditions of award of the fellowships,scholarships, exhibitions, medals and prizes;

Ordinances.

Statutes howto be made.

59

(e) the conditions and mode of appointment and dutiesof examining bodies, examiners and moderators;

(f) the conduct of examinations;

(g) the maintenance of discipline among the students ofthe Institute; and

(h) any other matter which by this Act or the Statutesis to be or may be provided for by the Ordinances.

26. (1) Save as otherwise provided in this section, Ordinancesshall be made by the Senate.

(2) All Ordinances made by the Senate shall have effect fromsuch date as it may direct, but every Ordinance so made shall besubmitted, as soon as may be, to the Board and shall be consideredby the Board at its next meeting.

(3) The Board shall have power by resolution to modify orcancel any such Ordinance and such Ordinance shall from the dateof such resolution stand modified accordingly or cancelled, as thecase may be.

27. (1) At every annual meeting of the Institute, the Directorshall lay before the Board—

(a) a balance sheet as at the end of the financial year;

(b) a statement of income and expenditure for thatperiod.

(2) Every balance sheet and statement of income andexpenditure of such Institute shall give a true and fair view of thestate of affairs of such Institute as at the end of the financial yearand shall, subject to the provisions of this section, be in such formas may be prescribed and in accordance with such generalinstructions and accounting standards as may be prescribed, or asnear thereto as circumstances admit.

(3) Where the statement of income and expenditure and thebalance sheet of the Institute do not comply with the accountingstandards, the Institute shall disclose in its statement of income andexpenditure and balance sheet, the following, namely:—

(a) the deviation from the accounting standards;

(b) the reasons for such deviation; and

(c) the financial effect, if any, arising due to suchdeviation.

Explanation.––For the purposes of this section, theexpression “accounting standards” means the standards ofaccounting recommended by the Institute of Chartered Accountantsof India constituted under the Chartered Accountants Act, 1949.

Ordinanceshow to bemade.

Annualaccounts andbalance sheet.

38 of 1949.

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28. (1) Every Institute shall keep proper books of accountwith respect to—

(a) all sums of money received and expended by it andthe matters in respect of which the receipt and expendituretake place;

(b) the assets and liabilities of the Institute;

(c) the properties, movable and immovable of theInstitute.

(2) For the purposes of sub-section (1), proper books ofaccount shall not be deemed to be kept with respect to the mattersspecified therein, if such books are not kept—

(a) as are necessary to give a true and fair view of thestate of affairs of the Institute and to explain its transactions;and

(b) on accrual basis and according to the double entrysystem of accounting.

29. (1) The Board of every Institute shall, before the expiryof three months prior to the end of the financial year, withoutprejudice to the provisions contained in the Comptroller and AuditorGeneral’s (Duties, Powers and Conditions of Service) Act, 1971 orany other law for the time being in force containing provisions foraudit of accounts by the Institutes, appoint an auditor or auditors,on such remuneration, as it thinks fit, to scrutinise the balance sheetand the statement of income and expenditure of such Institute.

(2) No person appointed as auditor or persons in theemployment of such auditor shall have any direct or indirectinterest, whether pecuniary or otherwise, in any matter concerningor related to the administration or operations (except being enrolledas students) of the Institute.

(3) The provisions of section 226 of the Companies Act, 1956on the qualifications and disqualifications of auditor shall apply,mutatis mutandis, for appointment of an auditor under this Act.

(4) Every auditor of each Institute shall have such powersand perform such duties as the auditor may think necessary for theperformance of his duties as an auditor and as are available to, orare required of, such auditor under the Companies Act, 1956.

30. (1) There shall be attached to every statement of accountslaid before the Board of each Institute, a report by its Director, withrespect to—

(a) the state of affairs of such Institute;

(b) the amounts, if any, which it proposes to carry toany surplus reserves in its balance sheet;

Books ofaccount to bemaintained byInstitute.

Appointmentof auditors.

Annual reportof Director.

56 of 1971.

1 of 1956.

1 of 1956.

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(c) the extent to which understatement oroverstatement of any surplus of income over expenditure orany shortfall of expenditure over income has been indicatedin the auditor ’s report and the reasons for suchunderstatement or overstatement;

(d) the productivity of research projects undertaken bythe Institute measured in accordance with such norms as maybe specified by any statutory regulatory authority;

(e) appointment of the officers and teachers of theInstitute; and

(f) benchmark and internal standards set by theInstitute, including the nature of innovations in teaching,research and application of knowledge.

(2) The report of the Director shall also include a statementshowing the name of the five officers and other employees of theInstitute who received the highest remuneration (includingallowances and other payments made to such employee) during thepreceding financial year and the contributions made by suchemployees during the financial year.

(3) The statement referred to in sub-section (2) shall indicatewhether any such employee is a relative of any member of theBoard or Senate of the Institute and if so, the name of suchmember and such other particulars as may be required.

(4) The Director shall also be bound to give the completeinformation and explanations in its report on every reservation,qualification or adverse remark contained in the auditors’ report.

31. (1) The statement of accounts, including the balancesheet and the statement of income and expenditure, the auditor’sreport, the report of the Director and other documents required tobe annexed or attached with such statement, shall be brought beforethe Board in its meeting at such time immediately, but not later thanthree months, from the conclusion of the financial year.

(2) A copy of every statement of accounts (including thebalance sheet, statement of income and expenditure, the auditors’report and every other document required to be annexed or attachedto balance sheet) which is to be laid before the Board of eachInstitute shall, not less than twenty-one days before the date of themeeting, be sent to every member of the Board.

(3) After the statement of accounts referred to in sub-section (1) has been laid before the Board of each Institute, suchbalance sheet, statement of income and expenditure and otherdocuments shall be published and placed on the website of suchInstitute.

Annualmeeting ofBoard toconsiderstatement ofaccounts.

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32. (1) The statement of accounts of each Institute, which isfully funded by the Central Government, shall be audited by suchauditor as may be appointed in this behalf by the Comptroller andAuditor-General of India.

(2) The Comptroller and Auditor-General of India and anyperson appointed by him in connection with the audit of theaccounts of each Institute, which is fully funded by the CentralGovernment, shall have the same rights, privileges and authority inconnection with such audit as the Comptroller and Auditor-Generalof India has in connection with the audit of the Central Governmentaccounts, and, in particular, shall have the right to demand theproduction of books, accounts, connected vouchers and otherdocuments and papers and to inspect the offices of the Institute.

(3) A copy of the statement of accounts including the balancesheet and the statement of income and expenditure, the auditor’sreport, the report of the Director and other documents required tobe attached with such statement, shall be submitted to the CentralGovernment, and that Government shall, as soon as may be, causethe same to be laid before each House of Parliament.

33. (1) The annual report of each Institute shall be preparedunder the direction of the Board, which shall include, among othermatters, the steps taken by the Institute towards the fulfilment of itsobjects and an outcome based assessment of the research beingundertaken in such Institute, and be submitted to the Board on orbefore such date as may be specified and the Board shall considerthe report in its annual meeting.

(2) The annual report as approved by the Board shall bepublished and placed on the website of the Institute.

(3) The annual report of each Institute which is fully fundedby the Central Government shall be submitted to the CentralGovernment who shall, as soon as may be, cause the same to belaid before each House of Parliament.

CHAPTER VI

THE COUNCIL

34. (1) With effect from such date as the Central Governmentmay, by notification, specify in this behalf, there shall be establishedfor all the Institutes specified in column (5) of the Schedule, acentral body to be called the Council.

(2) The Council shall consist of the following members,namely:––

(a) the Minister in charge of the Ministry orDepartment of the Central Government having administrativecontrol of the technical education, ex officio, as Chairperson;

Annualstatement ofaccounts ofInstitute fullyfunded byCentralGovernment.

Annual reportof eachInstitute.

Council ofInstitutes.

63

(b) the Minister in charge of technical education ofState Governments of such States where the Institutes arelocated, ex officio;

(c) the industry partner of each of the Institutesestablished in the public-private-partnership mode;

(d) the Chairpersons of each of the Institutes, exofficio;

(e) the Directors of each of the Institutes, ex officio;

(f) four persons to be nominated by the CentralGovernment, one each to represent the Ministry concernedwith finance, technical education, science and technology andinformation technology;

(g) three persons from the information technologyindustry to be nominated by the Council, from a panelcomprised of two names recommended by each Institute;

(h) three persons of eminence in research ininformation technology to be nominated by the Council, froma panel comprised of two names recommended by eachInstitute;

(i) three persons to represent persons of eminence fromacademia or civil society to be nominated by the Council,from a panel comprised of two names recommended by eachState Government of such States where Institutes are located.

(3) The Council shall have a Secretariat with a Secretary tobe appointed in such manner as may be prescribed.

(4) The Council may constitute a Standing Committee of theIndian Institute of Information Technology Council to assist theCouncil in discharge of its duties and responsibilities.

(5) The expenditure on the Council shall be met by theCentral Government.

35. (1) Save as otherwise provided in this section, the termof office of a member of the Council, other than an ex officiomember, shall be for a period of three years from the date ofnomination.

(2) The term of office of an ex officio member shall continueso long as he holds the office by virtue of which he is a member.

(3) The members of the Council shall be entitled to suchother travelling and such other allowances, as may be prescribed,for attending meetings of the Council or its Committees.

36. (1) The Council shall coordinate the activities of all theInstitutes.

Term ofoffice andallowancespayable tomembers ofCouncil.

Functions ofCouncil.

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(2) Without pre judice to the provisions of sub-section (1),the Council shall perform the following functions, namely:—

(a) to recommend to the Central Government, theinstitution of scholarships including research and for thebenefit of students belonging to the Scheduled Castes, theScheduled Tribes and other socially and educationallybackward classes of citizens;

(b) to recommend to the Central Government, proposalsfor establishment of new Institutes of Information Technologyin the public-private-partnership mode;

(c) to deliberate on such matters of common interest toInstitutes as may be referred to it by any Institute;

(d) to perform such other functions as may be referredto it by the Central Government or any State Government:

Provided that nothing in this section shall derogate the powersand functions vested by law in the Board or Senate or otherauthorities of each Institute.

(3) The Chairperson of the Council shall ordinarily preside atthe meetings of the Council and in his absence any other member,chosen by the members present from amongst themselves at themeeting, shall preside at the meeting.

CHAPTER VII

MISCELLANEOUS

37. No act of the Council, or any Institute or Board or Senateor any other body set-up under this Act or the Statutes, shall beinvalid merely by reason of––

(a) any vacancy or defect in the constitution thereof; or

(b) any irregularity in its procedure not affecting themerits of the case; or

(c) any defect in the selection, nomination orappointment of a person acting as a member thereof.

38. (1) Every Institute shall furnish to the CentralGovernment such returns or other information with respect to itspolicies or activities as the Central Government may, for thepurpose of reporting to Parliament or for the making of policy, fromtime to time require.

(2) Every Institute, established in the public-private-partnership mode, shall furnish to the State Government in whichsuch Institute is located, such returns or other information withrespect to its policies or activities as that Government may, for thepurpose of reporting to the concerned State Legislature or for themaking of policy, from time to time require.

Acts andproceedingsnot to beinvalidated byvacancies,etc.

Returns andinformationto beprovided toCentralGovernmentor StateGovernment.

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39. The Institute shall carry out such directions as may beissued to it from time to time by the Central Government for theefficient administration of this Act.

40. The provisions of the Right to Information Act, 2005 shallapply to each Institute, including Institutes established in the public-private-partnership mode, as if it were a public authority defined inclause (h) of section 2 of the Right to Information Act, 2005.

41. (1) The Central Government may, by notification makerules for carrying out the provisions of this Act.

(2) In particular, and without prejudice to the generality of theforegoing power, such rules may provide for all or any of thefollowing matters, namely:—

(a) the form and manner in which the StateGovernment shall submit proposal to the Central Governmentunder sub-section (2) of section 10;

(b) the criteria for examination of the proposal of theState Government under sub-section (3) of section 10;

(c) the form of balance sheet and statement of incomeand expenditure, and the accounting standards under sub-section (2) of section 27;

(d) the manner of appointment of Secretary under sub-section (3) of section 34;

(e) the travelling and such other allowances payable tothe members of the Council for attending meetings of theCouncil or its Committees under sub-section (3) of section 35;

(f) any other matter which is to be or may be,prescribed or in respect of which provision is to be made bythe Central Government by rules.

42. (1) Notwithstanding anything contained in this Act––

(a) the Board of every Institute functioning assuch immediately before the commencement of this Act shallcontinue to function until a new Board is constituted for thatInstitute under this Act, but on the constitution of a newBoard under this Act, the members of the Board holdingoffice before such commencement of this Act shall cease tohold office;

(b) every Senate constituted in relation to everyInstitute before the commencement of this Act shall bedeemed to be the Senate constituted under this Act until aSenate is constituted under this Act for that Institute, but onthe constitution of the new Senate under this Act, the

Powers ofCentralGovernmentto issuedirections.

22 of 2005. Institute tobe publicauthorityunder Rightto InformationAct.

Power ofCentralGovernmentto makerules.

Transitionalprovisions.

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members of the Senate holding office before thecommencement of this Act shall cease to hold office;

(c) the Statutes, Ordinances, rules, regulations and bye-laws of each existing Institute as in force, immediately beforethe commencement of this Act, shall continue to apply to thecorresponding Institute in so far as they are not inconsistentwith the provisions of this Act until the first Statutes and theOrdinances are made under this Act.

(2) The Central Government may, without pre judice to theprovisions of sub-section (1), if it considers necessary andexpedient to do so, by notification, take such measures which maybe necessary for the transfer of the existing Institute mentioned incolumn (3) of the Schedule to the corresponding Institute mentionedunder column (5) of the Schedule.

43. (1) If any difficulty arises in giving effect to theprovisions of this Act, the Central Government may, by orderpublished in the Official Gazette, make such provisions or give suchdirections not inconsistent with the provisions of this Act, asappears to it to be necessary or expedient for removing thedifficulty:

Provided that no such order shall be made under this sectionafter the expiry of the period of three years from the date ofcommencement of this Act.

(2) Every order made under this section shall be laid, as soonas may be after it is made, before each House of Parliament.

44. Every rule made and every notification issued by theCentral Government under this Act, shall be laid, as soon as may beafter it is made or issued, before each House of Parliament, whileit is in session, for a total period of thirty days which may becomprised in one session or in two or more successive sessions,and if, before the expiry of the session immediately following thesession or the successive sessions aforesaid, both Houses agree inmaking any modification in the rule or notification or both Housesagree that the rule or notification should not be made or issued, therule or notification shall thereafter have effect only in such modifiedform or be of no effect, as the case may be; so, however, that anysuch modification or annulment shall be without prejudice to thevalidity of anything previously done under that rule or notification.

Power toremovedifficulties.

Laying ofrules andnotifications.

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THE SCHEDULE

[See section 4(1)]

Sl. Name of the Name of the Location Name of theNo. State existing Institute Institute

incorporatedunder this Act

(1) (2) (3) (4) (5)

1. Uttar Indian Institute of Allahabad Indian InstitutePradesh Allahabad, being a of Information

society Technology, Technologyregistered under Informationthe Societies Allahabad.Registration Act,1860 (21 of 1860)

2. Madhya Atal Bihari Vajpayee Gwalior Atal BihariPradesh Indian Institute of Vajpayee Indian

Information Institute ofTechnology and InformationManagement, Technology andGwalior, being a Management,society registered Gwalior.under the SocietiesRegistration Act,1860 (21 of 1860)

3. Madhya Pandit Dwaraka Jabalpur Pandit DwarakaPradesh Prasad Mishra Prasad Mishra

Indian Institute of Indian InstituteInformation of InformationTechnology, Design Technology,and Manufacturing, Design andJabalpur, being a Manufacturing,society registered Jabalpur.under the SocietiesRegistration Act, 1860(21 of 1860)

4. Tamil Nadu Indian Institute of Kanchee- Indian InstituteInformation puram of InformationTechnology TechnologyDesign and Design andManufacturing, Manufacturing,Kancheepuram, being Kancheepuram.a society registeredunder the SocietiesRegistration Act, 1860(21 of 1860)

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STATEMENT OF OBJECTS AND REASONS

Education is a key element for developing human resourcesand contributing to the growth of the society. From relatively smallbeginning, the Indian information technology industry has emergedas a strong and credible force which is now recognised as a majorconstituent of the global information technology services industry.In order to provide manpower of global standards for theinformation technology industry to cater the needs of emergingareas of knowledge economy, education and training, informationtechnology is a prerequisite.

2. At present, there are four Indian Institutes of InformationTechnology (IIITs) established by the Central Government under theSocieties Registration Act, 1860 (21 of 1860) at Gwalior, Allahabad,Jabalpur and Kancheepuram. To meet the challenges of the IndianInformation Technology Industry, the Ministry of Human ResourceDevelopment intends to establish twenty new Indian Institutes ofInformation Technology on Public Private Partnership (PPP) basis.The partners in setting up the Indian Institute of InformationTechnology would be the Ministry of Human Resource Development,the concerned State Government where such Indian Institute ofInformation Technology will be established and the industry asconceived under the Scheme formulated by the Central Governmentin this behalf.

3. The main objective in establishing Indian Institutes ofInformation Technology is to set up a model of education whichcan produce world class human resource in the field of informationtechnology. These institutions are conceived as self sustaining,research-led institutions contributing significantly to the globalcompetitiveness of key sectors of the Indian economy and industrywith application of information technology in selected domain areas.

4. The Indian Institutes of Information Technology Bill, 2013seeks to declare the four existing Indian Institutes of InformationTechnology, funded by the Central Government, as Institutions ofNational Importance and to provide for the establishment of otherInstitutions of Information Technology.

5. The notes on clauses explain in detail the variousprovisions contained in the Bill.

6. The Bill seeks to achieve the above objects.

NEW DELHI; M.M. PALLAM RAJU.The 4th December, 2012.

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Notes on clauses

Clause 1.—This clause provides for the short title andcommencement of the proposed legislation.

Clause 2.—This clause deals with declaration of certaininstitutions as institutions of national importance.

Clause 3.—This clause provides for definitions of variousexpressions used in the proposed legislation, which, inter alia,include “appointed day”, “existing Institute”, “industry partner”,“public-private-partnership mode”, etc.

Clause 4 .—This clause relates to establishment andincorporation of Institutes. Sub-clause (a) of clause (1) of the saidclause provides that on and from the commencement of the Act—(a) every existing Institute, shall be a body corporate by the samename as mentioned under column (5) of the said Schedule; (b) onand from the appointed day, any other Institutes of InformationTechnology as may be established under section 10 or section 11shall be a body corporate by such name as the CentralGovernment may, notify. Sub-clause (2) of the said clauseprovides that every existing Institute referred to in clause (a) orthe Institutes established under clause (b) of sub-section (1) shallhave perpetual succession and a common seal, with power, subjectto the provisions of this Act, to acquire, hold and dispose ofproperty, both movable and immovable, and to contract, and shall,by the said name, sue or be sued.

Clause 5.—This clause provides for effect of incorporationof Institutes. It provides that on and from the date ofcommencement of this Act:—(a) any reference to any existingInstitute in any contract or other instrument shall be deemed as areference to the corresponding Institute mentioned in column (5)of the Schedule; (b) all properties, movable and immovable, of orbelonging to every existing Institute shall vest in the correspondingInstitute mentioned under column (5) of the Schedule; (c) all therights, debts and other liabilities of every existing Institute shall betransferred to, and be the rights and liabilities of, thecorresponding Institute mentioned in column (5) of the Schedule;(d) every person employed by any existing Institute, immediatelybefore such commencement, shall hold his office or service in thecorresponding Institute mentioned in column (5) of the Schedule,by the same tenure, at the same remuneration and upon the sameterms and conditions and with the same rights and privileges as topension, leave, gratuity, provident fund and other matters as hewould have held the same if this Act had not been enacted andshall continue to do so unless and until his employment is

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terminated or until such tenure, remuneration and the terms andconditions are duly altered by the Statutes. However, the sub-clause provides that if the alteration so made is not acceptable tosuch employee, his employment may be terminated by the Institutein accordance with the terms of the contract with the employeeor, if no provision is made therein in this behalf, on payment, tohim by the Institute of compensation equivalent to three months’remuneration in case of permanent employees and one month’sremuneration in the case of other employees. The said sub-clausefurther provides that any reference, by whatever form of words,to the Director, Registrar or other officer of any existing Institutementioned in column (3) of the Schedule, in any law for the timebeing in force, or in any instrument or other document, shall bedeemed as a reference to the Director, Registrar or other officerof the corresponding Institute column (5) of the Schedule;(e) every person pursuing, any academic or research courseimmediately before such commencement in any existing Institute,shall be deemed to have registered with the corresponding Institutementioned in column (5) of the said Schedule at the same level ofcourse in such Institute; (f) all suits and other legal proceedingsinstituted by or against the existing Institute, immediately beforesuch commencement, may continue by or against thecorresponding Institute mentioned in column (5) of the Schedule.

Clause 6.—This clause deals with objects of Institutes. Itprovides that the objects of every Institute shall be to––(a) emergeas one amongst the foremost institutions in information technologyand allied fields of knowledge; (b) advance new knowledge andinnovation in information technology and allied fields to empowerthe nation to the forefront in the global context; (c) developcompetent and capable youth imbued with the spirit of innovationand entrepreneurship with the social and environmental orientationto meet the knowledge needs of the country and provideglobal leadership in information technology and allied fields;(d) promote and provide transparency of highest order in mattersof admission, appointment to various positions, academic evaluation,administration and finance.

Clause 7.—This clause deals with powers and functions ofInstitutes. It provides that subject to the provisions of this Act,every Institute shall exercise the following powers and perform thefollowing functions—(a) to provide for instructions in such fieldsof knowledge relating to information technology and allied areas assuch Institute may think fit, for the advancement of learning anddissemination of knowledge; (b) to lead, organise and conductresearch and innovation in information technology and allied fieldsof knowledge in such manner as the Institute may think fit,including collaboration or association with any other Institute,educational institution, research organisation or body corporate;(c) to hold examinations and grant degrees, diplomas and otheracademic distinctions or title and to confer honorary degree; (d) to

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institute teaching, research or other academic positions, requiredby the Institute with such designations as it may deem fit, and toappoint persons on tenure, term or otherwise to such positions;(e) to appoint persons working in any other Institute oreducational institution or involved in research of significance inany industry as adjunct, guest or visiting faculty of the Institute onsuch terms and for such duration as the Institute may decide;(f) to create administrative and other posts and to makeappointments thereto; (g) to make provision for dissemination ofknowledge emerging from research and for that purpose to enterinto such arrangements including consultancy and advisoryservices, with other institutions, industry, civil society or otherorganisations, as the Institute may consider necessary; (h) todetermine, specify and receive payment of fees and other charges,as the Institute may deem fit, from students and any other person,institution or body corporate for instructions and other services,including training, consultancy and advisory services, provided bythe Institute; (i) to deal with any property belonging to, or vestedin, the Institute in such manner as the Institute may deem fit foradvancement of the objects of the Institute and no land or otherimmovable property shall be disposed of by the Institute withoutthe prior approval of the Central Government and where the landfor the Institute has been provided free of cost by a StateGovernment, such land may be disposed of only with the priorapproval of such State Government; (j) to receive gifts, grants,donations or benefactions from the Government and to receivebequests, donations and transfer of movable or immovableproperties from testators, donors or transferors, as the case maybe; (k) to establish and maintain such infrastructure as may benecessary; (l) to institute and award fellowships, scholarships,exhibitions, prizes and medals; and (m) to do all such things asmay be necessary, incidental or conducive to the attainment of allor any of the objects of the Institute.

Clause 8.—This clause provides that each Institutes shall beopen to all races, creeds and classes. Sub-clause (1) of the saidclause provides that every Institute shall be open to all persons ofeither sex, irrespective of caste, creed, race, religion, disability,domicile, social or economic background. Sub-clause (2) of thesaid clause provides that admissions to every course or programmeof study in each Institute shall be based on merit assessedthrough transparent and reasonable criteria disclosed throughits prospectus, prior to the commencement of the process ofadmission by such Institute. However, every such Institute shall bea Central Educational Institution for the purposes of the CentralEducational Institutions (Reservation in Admission) Act, 2006.

Clause 9.—It provides that every Institute shall be a not-for-profit legal entity and no part of the surplus, if any, in revenue ofsuch Institute, after meeting all expenditure in regard to itsoperations under this Act, shall be invested for any purpose other

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than for the growth and development of such Institute or forconducting research therein.

Clause 10.—This clause relates to Institute in public-privatepartnership mode. Sub-clause (1) of the said clause provides that aState Government may establish an Institute under this Act. Sub-clause (2) of the said clause provides that for the purposes ofestablishment of an Institute in the public-private partnership mode, aState Government shall identify an industry partner for collaborationand submit a proposal to the Central Government in such form andmanner as may be prescribed. Sub-clause (3) of the said clauseprovides that the Central Government shall examine the proposal onthe basis of such criteria. However, such criteria for examination shallinclude — (a) the investment of capital required for establishing theproposed Institute and its phasing; (b) the expertise and standing ofthe industry partner referred to in sub-section (2) in the field ofinformation technology; (c) assessment of the capability, financial andother resources of the industry partner to support the Institute;(d) availability of adequate land free of cost for establishment of theInstitute; (e) availability of, or the commitment of the StateGovernment to make available, adequate physical and socialinfrastructure at the proposed site for establishment of the Institute;(f) commitment of the concerned State Government and the industrypartner for supporting the Institute after its establishment. Sub-clause (4) of the said clause provides that the Central Governmentwith the concurrence of the concerned State Government maysuggest modifications to the proposal submitted to it under sub-section (2), if any. Sub-clause (5) of the said clause provides that theCentral Government shall, on acceptance of the proposal with suchmodifications as may be concurred in by the State Government, enterinto a memorandum of understanding or an agreement with theconcerned State Government and the industry partners forestablishing proposed Institute subject to the provisions of this Actand rules made thereunder. Sub-clause (6) of the said clause providesthat every memorandum of understanding or agreement referred to insub-section (5) shall contain,— (a) the investment of capital inestablishment of the Institute, the respective shares in suchinvestment of capital of the Central Government, State Governmentconcerned and the industry partner, and the phasing of such capitalinvestment over a period of five years; (b) the first Statutes of theInstitute; (c) the commitment of the Central Government, theconcerned State Government and the industry partner in ensuringautonomy to the proposed Institute. Sub-clause (7) of the said clauseprovides that where the proposal submitted by the State Governmentunder sub-section (2) is not acceptable to the Central Government, itshall communicate its decision to the State Government, specifyingthe reasons for such decision.

Clause 11.—This clause relates to establishment of Instituteby the Central Government. Sub-clause (1) of the said clauseprovides that the Central Government may establish an Institute

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which shall be fully funded by it. Sub-clause (2) of the said clauseprovides that nothing contained in section 10 shall apply to suchan Institute as the Central Government may establish under sub-section (1).

Clause 12.—This clause deals with the Board of Governors.Sub-clause (1) of the said clause provides that the Board ofGovernors of each Institute shall be the principal executive bodyof that Institute. Sub-clause (2) of the said clause provides thatthe Board of Governors of each Institute shall consist of thefollowing members—(a) a Chairperson, to be appointed by theInstitute in the manner provided in sub-section (3); (b) twopersons from the industry in the field of information technology,to be appointed by the Institute in the manner provided in sub-section (5); (c) two persons from leading research laboratorieshaving research interests in the field of information technology tobe appointed by the Institute as provided in sub-section (6);(d) two persons having special knowledge or practical experiencein respect of education or engineering to be appointed by theInstitute as provided in sub-section (6); (e) two persons fromamongst faculty members of the Institute to be nominated by theChairperson in consultation with the Director and two senior mostDeans of the Institute; (f) Director of the Indian Institute ofTechnology located in the zone in which the Institute is located,ex officio; (g) Vice-Chancellor of a University in the State to benominated by the State Government in which the Institute islocated, ex officio; (h) one person to represent the ScheduledCastes or the Scheduled Tribes to be nominated by the StateGovernment; (i) Director of National Institute of Technology ofthe State in which the Institute is located, ex officio; (j) twosenior most Deans of the Institute; (k) Director of the Institutewho shall be its Member-Secretary.

Sub-clause (3) of the said clause provides that theChairperson shall be appointed by the Institute from a panel ofthree names recommended by a Search-cum-Selection Committeeconsisting of — (a) a nominee of the Central Government whoshall be a person of eminence in academia in the field ofengineering or science; (b) a nominee of the State Governmentwho shall be a person of eminence in academia in the field ofinformation technology; (c) a nominee of the Central Government,in case of an Institute fully funded by the Central Government, orby the industry partner, in case of an Institute established in thepublic-private-partnership mode, to represent industry. Sub-clause (4) of the said clause provides that the Director of theInstitute shall be the convenor of the meetings of the Search-cum-Selection Committee but shall not participate in its deliberations.Sub-clause (5) of the said clause provides that a member of theBoard referred to it in clause (b) of sub-section (2) shall beappointed by the Institute on approval of a specific name by theBoard from a panel of names recommended by the CentralGovernment, in case of an Institute fully funded by the Central

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Government, or by the industry partner, in case of an Instituteestablished in the public-private partnership mode. Sub-clause (6)of the said clause provides that a member of the Board referredto in clause (c) or clause (d) of sub-section (2) shall be appointedby the Institute on approval of a specific name by the Board froma panel of names recommended by the Council.

Clause 13.—This clause deals with term of office of,vacancies among, and allowances payable to, members of theBoard. Sub-clause (1) of the said clause provides that save asotherwise provided in this section, the term of office of theChairperson or any other member of the Board, other than an exofficio member, shall be for a period of five years from the dateof his nomination. Sub-clause (2) of the said clause provides thatthe term of office of an ex officio member shall continue so longas he holds the office by virtue of which he is a member. Sub-clause (3) of the said clause provides that the term of officeof a member nominated under clause (e) of sub-section (2) ofsection 12 shall be for a period of two years from the date of hisnomination. Sub-clause (4) of the said clause provides that amember of the Board, other than an ex officio member, who failsto attend three consecutive meetings of the Board, shall cease tobe a member of the Board. Sub-clause (5) of the said clauseprovides that members of the Board shall be entitled to suchallowances, as may be specified in the Statutes, for attendingmeetings of the Board or as may be convened by the Institute.

Clause 14.—This clause deals with powers and functions ofthe Board. Sub-clause (1) of the said clause provides that subjectto the provisions of this Act, the Board of every Institute shall beresponsible for the general superintendence, direction and controlof the affairs of the Institute and shall have the power to frame,amend, modify or rescind the Statutes and the Ordinancesgoverning the affairs of the Institute to achieve the objectsspecified in section 6. Sub-clause (2) of the said clause providesthat without prejudice to the provisions of sub-section (1), theBoard shall have the following powers (a) to decide questions ofpolicy relating to the administration and working of the Institute;(b) to make Statutes governing the administration, management andoperations of the Institute; (c) to examine and approve the annualbudget estimates of the Institute; (d) to examine and approve theplan for development of the Institute and to identify sources offinance for implementation of the plan; (e) to establishdepartments, faculties or schools of studies and initiateprogrammes or courses of study at the Institute; (f) to createteaching and other academic posts, to determine the number andemoluments of such posts and to define the duties and conditionsof service of teachers and other academic staff and the Board shallnot take action otherwise than on consideration of therecommendations of the Senate; (g) to provide, by the Statutes,the qualifications, criteria and processes for appointment toteaching and other posts in the Institute; (h) to fix, by the

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Statutes, fees and other charges payable for pursuit of courses orprogrammes in the Institute; (i) to exercise such other powers andperform such other duties as may be conferred or imposed by thisAct or the Statutes. Sub-clause (3) of the said clause provides thatthe Board may, subject to the provisions of this Act and theStatutes, delegate such powers and functions to the Senate, theResearch Council, or to the Director or other officer of theInstitution as the Board may deem fit. Sub-clause (4) of the saidclause provides that the Board shall conduct an annual review ofthe performance of the Director with specific reference to hisleadership in the achievement of the objects of the Institute. Sub-clause (5) of the said clause provides that the Board shall inexercise of the powers and discharge of functions strive toprovide autonomy in academic matters to the Senate anddepartments of faculties or schools, as the case may be. Sub-clause (6) of the said clause provides that where in the opinion ofthe Chairperson, the situation is so emergent that an immediateaction needs to be taken in the interest of the Institute, theChairperson in consulation with the Director, may, after recordingthe reasons for his opinion, issue such order as he thinks fit andsuch orders shall be submitted for ratification of the Board in thenext meeting.

Clause 15.—This clause relates to Senate. Sub-clause (1) ofthe said clause provides that the Senate of every Institute shallconsist of the following persons — (a) the Director of theInstitute shall be the Chairperson of the senate; (b) heads of alldepartments, faculties or schools, as the case may be, comprisingthe Institute; (c) Deans in charge of academic, research andstudent affairs in the Institute; (d) six members of faculty fromamongst the Professors of the Institute to be nominated by theBoard; (e) three persons of eminence in the field of educationhaving knowledge of inter-disciplinary field, to be nominated bythe Board; (f) three persons of eminence from the fields ofresearch in information technology or related fields to benominated by the Board; (g) such other persons to be nominatedby the Board to provide representation in such fields of knowledgeor technology which, in its opinion, are not adequatelyrepresented. Sub-clause (2) of the said clause provides that theterm of office of an ex officio member shall continue so long ashe holds the office by virtue of which he is a member. Sub-clause (3) of the said clause provides that the term of office ofa member nominated under clauses (d) to (f) of sub-section (1)shall be for a period of three years from the date of hisnomination. Sub-clause (4) of the said clause provides that amember of the Senate under clauses (d) to (f) of sub-section (1),who fails to attend three consecutive meetings of the Board, shallcease to be a member of the Board.

Clause 16.—This clause relates to powers and functions ofSenate. Sub-clause (1) of the said clause provides that subject to

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the provisions of this Act, the Statutes and the Ordinances, theSenate shall be the principal academic body of the Institute andshall have the power to enact, amend, modify the Ordinancesgoverning academic matters and the affairs and welfare ofstudents in the Institute. Sub-clause (2) of the said clause providesthat without prejudice to the provisions of sub-section (1), theSenate shall have powers – (a) to specify the criteria andprocedure for admission to courses or programmes of studyoffered by the Institute; (b) to recommend the Board to instituteteaching and other academic posts, determination of the numberand emoluments of such posts and defining the duties andconditions of service of teachers and other academic posts; (c) torecommend to the Board about commencement of newprogrammes or courses of study; (d) to specify the broadacademic content of programmes and courses of study and tosuggest modifications therein; (e) to specify the academic calendarand approve grant of degrees, diplomas and other academicdistinctions or titles; (f) to exercise such other powers anddischarge such other functions as may be assigned to it, in theStatutes, by the Board.

Clause 17.—This clause relates to Research Council. Sub-clause (1) of the said clause provides that every Institute shallestablish a Research Council comprising of the Director and suchother members as may be specified, in the Statutes, by the Board.Sub-clause (2) of the said clause provides that the ResearchCouncil of every Institute shall — (i) interface with researchfunding organisations, industry and civil society to identifypotential areas for research; (ii) organise and promote research insuch Institute or in collaboration with any institution of higherlearning or research laboratories; (iii) assist teachers in obtainingfunding from external sources for research projects prepared bythem; (iv) provide, out of the funds placed at its disposal by theBoard, research resources and grant assistance for researchprojects proposed to be undertaken by teachers in such Institute;(v) provide for incubation of technology applications emergingfrom research and to protect and utilise the intellectual propertyobtained from research in the Institute; (vi) make provisions forresearch and advisory services and for that purpose enter intosuch arrangements with other institutions, industry, civil society orother organisations and enable the research to be disseminated toindustry and society through such arrangements; (vii) exercisesuch other powers and perform such other functions as may beassigned to it by the Statutes.

Clause 18.—This clause relates to Director. Sub-clause (1)of the said clause provides that the Director shall be the principalexecutive officer of every Institute and shall be responsible forimplementation of the decisions of the Board and Senate and forthe day-to-day administration of the Institute. Sub-clause (2) of thesaid clause provides that the Director shall exercise such other

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powers and discharge such other duties as may be assigned tohim by this Act or the Statutes or Ordinances or delegated by theBoard or the Senate. Sub-clause (3) of the said clause providesthat the Director shall be appointed by the Board from a panel ofnames recommended by a Search-cum-Selection Committeeconsisting of (a) the Chairperson of the Board; (b) the Director ofthe Indian Institute of Technology of the zone in which theInstitute is located; (c) the nominee of the Central Government, incase of an Institute fully funded by the Central Government, whoshall be a person of eminence in academia in the field ofinformation technology; (d) three nominees, one each from theCentral Government, the concerned State Government, each ofwhom shall be a person of eminence in academia in the field ofinformation technology, and a nominee of the industry partnerfrom the information technology, in case of an Instituteestablished in the public-private-partnership mode. Sub-clause (4)of the said clause provides that the Director shall, except onaccount of resignation or removal, hold office for a period of fiveyears from the date on which he enters upon his office. Sub-clause (5) of the said clause provides that the Director may, bynotice in writing under his hand addressed to the Chairperson,resign from his office. Sub-clause (6) of the said clause providesthat the Director may be removed by the Board on proven chargesof misbehaviour or misconduct. However, the said sub-clauseprovides that the Director shall not be removed from his office,except by an order made by the Board after an inquiry institutedin this behalf by the Board, and after giving him a reasonableopportunity of being heard and where the institution of an inquiryor removal of the Director is being considered by the Board, theDirector shall refrain himself from the proceedings of the Board.Sub-clause (7) of the said clause provides that the Board mayremove the Director from office, if it is dissatisfied with thefunctioning of the Institute after review of the affairs of theInstitute in the manner provided in sub-section (6). Sub-clause (8)of the said clause provides that the Board shall initiate the processof appointment in respect of any vacancy due to arise for the postof Director on completion of tenure before a period of six monthsfrom the date of arising of such vacancy and the process ofappointment shall be completed before such vacancy arises. Sub-clause (9) of the said clause provides that where any casualvacancy has occurred for the post of Director, the process ofappointment in respect of such vacancy shall be completed withina period of three months from the date of such vacancy.

Clause 19.—This clause deals with other committees andauthorities. Sub-clause (1) of the said clause provides theconstitution, powers and functions of the other authorities as maybe declared by the Statutes shall be such as may be provided bythe Statutes. Sub-clause (2) of the said clause provides that theBoard may constitute such committees, as it may deem fit, forefficient management of affairs of the Institute.

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Clause 20.—This clause deals with review of performanceof Institute. Sub-clause (1) of the said clause provides that everyInstitute shall, within seven years from the date of establishmentand incorporation of such Institute under this Act and thereafter atthe expiration of every fifth year, constitute, with the priorapproval of the Central Government, a Committee to evaluate andreview the performance of such Institute in achievement of itsobjects during the said period. Sub-clause (2) of the said clauseprovides that the Committee constituted under sub-section (1) shallconsist of members of repute in academia or industry, fromrelevant fields of teaching, learning and research in such Institute.Sub-clause (3) of the said clause provides that the Committee shallassess the performance of Institute and make recommendationson—(a) the extent of fulfilment of the objects of the Institutementioned in section 6, and its contribution to the society; (b) thepromotion of transformational research and its impact on industryor society; (c) the advancement of fundamental research; (d) theestablishment of the Institute as amongst the global leaders in thearea of information technology; (e) the extent of achievement ofsocial equality through education and research in the Institute;(f) such other parameters as the Board may consider necessaryand specify. Sub-clause (4) of the said clause provides that theBoard shall consider the recommendations referred to in sub-section (3) and take such action, as it may deem fit and therecommendations of the Committee along with an explanatorymemorandum on the action taken or proposed to be taken,specifying the reasons thereof, shall be submitted to the CentralGovernment or to the State Government in case of an Instituteestablished under section 10 in the public-private partnership modeand the Central Government or the State Government, as the casemay be, shall cause such recommendations to be laid before eachHouse of Parliament or the State Legislature. Sub-clause (5) of thesaid clause provides that the Central Government shall havethe power to give such directions, emanating from therecommendations of the Committee, on policy relating to nationalpurpose, as it may deem fit, and the Institute shall comply withsuch directions and if any dispute arises as to whether thedirection is a question of policy relating to national purpose or not,the decision of the Central Government shall be final.

Clause 21.—This clause deals with grants by CentralGovernment. Sub-clause (1) of the said clause provides that theCentral Government may, after due appropriation made byParliament by law in this behalf, make to each Institute, which isfully funded by the Central Government, grants of such sums ofmoney as are required for supporting the Institute for itsoperation, management and maintenance. Sub-clause (2) of thesaid clause provides that the Central Government shall provide toeach Institute, including Institutes established in the public privatepartnership mode, grants of such sums of money as are requiredto meet the expenditure on scholarships or fellowships instituted

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by it, including scholarships or fellowships for students fromsocially and educationally backward classes or categories ofcitizens enrolled in such Institute.

Clause 22.—This clause relates to fund of Institute. Sub-clause (1) of the said clause provides that every Institute shallmaintain a fund to which shall be credited—(a) all monies providedby the Central Government or the State Government or industrypartner, as the case may be; (b) all fees and other chargesreceived by the Institute; (c) all monies received by the Instituteby way of grants, gifts, donations, benefactions, bequests ortransfers; (d) all monies received by the Institute from utilisationof intellectual property arising from research conducted orprovision of advisory or consultancy services by it; (e) all moniesreceived by the Institute in any other manner or from any othersource. Sub-clause (2) of the said clause provides that the fund ofevery Institute shall be applied towards meeting the expenses ofthe Institute including expenses incurred in the exercise of itspowers and discharge of its duties under this Act, furtherance ofresearch in the Institute or in collaboration with other educationalinstitutions or industry and for capital investment aimed at thegrowth and development of the Institute.

Clause 23.—This clause relates to Statutes. It provides thatsubject to the provisions of this Act, the Statutes may provide forall or any of the following matters—(a) the conferment ofhonorary degrees; (b) the formation of departments of teaching;(c) the fees to be charged for courses of study in the Institute andfor admission to the examinations of degrees and diplomas of theInstitute; (d) the institution of fellowships, scholarships,exhibitions, medals and prizes; (e) the terms of office and themethod of appointment of officers of the Institute; (f) thequalifications of teachers of the Institute; (g) the classification, themethod of appointment and the determination of the terms andconditions of service of teachers and other staff of the Institute;(h) the constitution of pension, insurance and provident funds forthe benefit of the officers, teachers and other staff of theInstitute; (i) the constitution, powers and duties of the authoritiesof the Institute; (j) the establishment and maintenance of halls andhostels; (k) the conditions of residence of students of the Instituteand the levying of fees for residence in the halls and hostels andof other charges; (l) the allowances to be paid to the Chairpersonand members of the Board; (m) the authentication of the ordersand decisions of the Board; (n) the meetings of the Board, theSenate, or any Committee, the quorum at such meetings and theprocedure to be followed in the conduct of their business; and(o) any other matter which is required to be or may be specifiedby Statutes or in respect of which provision is to be made byStatutes.

Clause 24.—This clause relates to Statutes how made. Sub-clause (1) of the said clause provides that the first Statutes of

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each Institute shall be framed by the Board with the prior approvalof the Central Government and a copy of the same shall be laid,as soon as may be, before each House of Parliament. Sub-clause (2) of the said clause provides that the Board may, fromtime to time, make new or additional Statutes or may amend orrepeal the Statutes in the manner provided in this section. Sub-clause (3) of the said clause provides that every new Statute oraddition to the Statutes or any amendment or repeal of Statutesshall require the previous approval of the Central Government.

Clause 25.—This clause deals with Ordinances. It providesthat subject to the provisions of this Act and the Statutes, theOrdinances of every Institute may provide for all or any of thefollowing matters — (a) the admission of the students to theInstitute; (b) the courses of study to be laid down for all degreesand diplomas of the Institute; (c) the conditions under whichstudents shall be admitted to the degree or diploma courses and tothe examinations of the Institute, and shall be eligible for degreesand diplomas; (d) the conditions of award of the fellowships,scholarships, exhibitions, medals and prizes; (e) the conditions andmode of appointment and duties of examining bodies, examinersand moderators; (f) the conduct of examinations; (g) themaintenance of discipline among the students of the Institute; and(h) any other matter which by this Act or the Statutes is to be ormay be provided for by the Ordinances.

Clause 26.—This clause deals with Ordinances how made.Sub-clause (1) of the said clause provides that save as otherwiseprovided in this section, Ordinances shall be made by the Senate.Sub-clause (2) of the said clause provides that all Ordinancesmade by the Senate shall have effect from such date as it maydirect, but every Ordinance so made shall be submitted, as soonas may be, to the Board and shall be considered by the Board atits next meeting. Sub-clause (3) of the said clause provides thatthe Board shall have power by resolution to modify or cancel anysuch Ordinance and such Ordinance shall from the date of suchresolution stand modified accordingly or cancelled, as the casemay be.

Clause 27.—This clause relates to the annual accounts andbalance sheet. Sub-clause (1) of the said clause provides that atevery annual meeting of the Institute, the Director shall lay beforethe Board – (a) a balance sheet as at the end of the financial year;(b) a statement of income and expenditure for that period. Sub-clause (2) of the said clause provides that every balance sheet andstatement of income and expenditure of such Institute shall give atrue and fair view of the state of affairs of such Institute as at theend of the financial year and shall, subject to the provisions of thissection, be in such form and in accordance with such generalinstructions and accounting standards as may be prescribed, or asnear thereto as circumstances admit. Sub-clause (3) of the saidclause provides that where the statement of income and

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expenditure and the balance sheet of the Institute do not complywith the accounting standards, the Institute shall disclose in itsstatement of income and expenditure and balance sheet, thefollowing — (a) the deviation from the accounting standards;(b) the reasons for such deviation; and (c) the financial effect, ifany, arising due to such deviation.

Clause 28.—This clause deals with books of account to bemaintained by Institute. Sub-clause (1) of the said clause providesthat every Institute shall keep proper books of account withrespect to—(a) all sums of money received and expended by itand the matters in respect of which the receipt and expendituretake place; (b) the assets and liabilities of the Institute; (c) theproperties, movable and immovable of the Institute. Sub-clause (2)of the said clause provides that for the purposes of sub-section (1), proper books of account shall not be deemed to bekept with respect to the matters specified therein, if such booksare not kept—(a) as are necessary to give a true and fair view ofthe state of affairs of the Institute and to explain its transactions;and (b) on accrual basis and according to the double entry systemof accounting.

Clause 29.—This clause deals with appointment of auditors.Sub-clause (1) of the said clause provides that the Board of everyInstitute shall, before the expiry of three months prior to the endof the financial year, without prejudice to the provisions containedin the Comptroller and Auditor-General’s (Duties, Powers andConditions of Service) Act, 1971 or any other law for the timebeing in force containing provisions for audit of accounts by theInstitutes, appoint an auditor or auditors, on such remuneration asit thinks fit, to scrutinise the balance sheet and the statement ofincome and expenditure of such Institute. Sub-clause (2) of thesaid clause provides that no person appointed as auditor or personsin the employment of such auditor shall have any direct or indirectinterest, whether pecuniary or otherwise, in any matter concerningor related to the administration or operations (except being enrolledas students) of the Institute. Sub-clause (3) of the said clauseprovides that the provisions of section 226 of the CompaniesAct, 1956 on the qualifications and disqualifications of auditor shallapply mutatis mutandis for appointment of an auditor under thisAct. Sub-clause (4) of the said clause provides that every auditorof each Institute shall have such powers and perform such dutiesas the auditor may think necessary for the performance of hisduties as auditor and as are available to, or are required of, suchauditor under the Companies Act, 1956.

Clause 30.—This clause deals with annual report ofDirector. Sub-clause (1) of the said clause provides that there shallbe attached to every statement of accounts laid before the Boardof each Institute, a report by its Director, with respect to —(a) the state of affairs of such Institute; (b) the amounts, if any,which it proposes to carry to any surplus reserves in its balance

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sheet; (c) the extent to which understatement or overstatement ofany surplus of income over expenditure or any shortfall ofexpenditure over income has been indicated in the auditor’s reportand the reasons for such understatement or overstatement; (d) theproductivity of research projects undertaken by the Institutemeasured in accordance with such norms as may be specified byany statutory regulatory authority; (e) appointment of the officersand teachers of the Institute; (f) benchmark and internal standardsset by the Institute, including the nature of innovations in teaching,research and application of knowledge. Sub-clause (2) of the saidclause provides that the report of the Director shall also include astatement showing the name of the five officers and otheremployees of the Institute who received the highest remuneration(including allowances and other payments made to such employee)during the preceding financial year and the contributions made bysuch employees during the financial year. Sub-clause (3) of thesaid clause provides that the statement referred to in sub-section (2) shall indicate whether any such employee is a relativeof any member of the Board or Senate of the Institute and if so,the name of such member, and such other particulars as may berequired. Sub-clause (4) of the said clause provides that theDirector shall also be bound to give the complete information andexplanations in its report on every reservation, qualification oradverse remark contained in the auditors’ report.

Clause 31.—This clause provides that annual meeting ofBoard to consider statement of accounts. Sub-clause (1) of thesaid clause provides that the statement of accounts, including thebalance sheet and the statement of income and expenditure, theauditor’s report, the report of the Director and other documentsrequired to be annexed or attached with such statement, shall bebrought before the Board in its meeting at such time immediately,but not later than three months, from the conclusion of thefinancial year. Sub-clause (2) of the said clause provides that acopy of every statement of accounts (including the balance sheet,statement of income and expenditure, the auditors’ report andevery other document required to be annexed or attached tobalance sheet) which is to be laid before the Board of eachInstitute shall, not less than twenty-one days before the date of themeeting, be sent to every member of the Board. Sub-clause (3) ofthe said clause provides that after the statement of accountsreferred to in sub-section (1) has been laid before the Board ofeach Institute, such balance sheet, statement of income andexpenditure and other documents shall be placed on the website ofsuch Institute.

Clause 32.—This clause provides for annual statement ofaccounts of Institutes fully funded by the Central Government.Sub-clause (1) of the said clause provides that the statement ofaccounts of each Institute, which is fully funded by the CentralGovernment, shall be audited by such auditor as may be appointed

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in this behalf by the Comptroller and Auditor-General of India.Sub-clause (2) of the said clause provides that the Comptroller andAuditor-General of India and any person appointed by him inconnection with the audit of the accounts of each Institute, whichis fully funded by the Central Government, shall have the samerights, privileges and authority in connection with such audit asthe Comptroller and Auditor-General of India has in connectionwith the audit of the Central Government accounts, and, inparticular, shall have the right to demand the production of books,accounts, connected vouchers and other documents and papersand to inspect the offices of the Institute. Sub-clause (3) of thesaid clause provides that a copy of the statement of accountsincluding the balance sheet and the statement of income andexpenditure, the auditor’s report, the report of the Director andother documents required to be attached with such statement, shallbe submitted to the Central Government, and that Governmentshall, as soon as may be, cause the same to be laid before eachHouse of Parliament.

Clause 33.—This clause deals with annual report of eachInstitute. Sub-clause (1) of the said clause provides that the annualreport of each Institute shall be prepared under the direction of theBoard, which shall include, among other matters, the steps takenby the Institute towards the fulfilment of its objects and anoutcome based assessment of the research being undertaken insuch Institute, and be submitted to the Board on or before suchdate as may be specified and the Board shall consider the reportin its annual meeting. Sub-clause (2) of the said clause providesthat the annual report as approved by the Board shall be publishedand placed on the website of the Institute. Sub-clause (3) of thesaid clause provides that the annual report of each Institute whichis fully funded by the Central Government shall be submitted tothe Central Government who shall, as soon as may be, cause thesame to be laid before each House of Parliament.

Clause 34.—This clause deals with Council of Institutes.Sub-clause (1) of the said clause provides that with effect fromsuch date as the Central Government may, by notification, specifyin this behalf, there shall be established for all the Institutesspecified in column (5) of the Schedule, a central body to becalled the Council. Sub-clause (2) of the said clause provides thatthe Council shall consist of the following members — (a) theMinister in charge of the Ministry or Department of the CentralGovernment having administrative control of the technicaleducation, ex officio, as Chairperson; (b) the Minister in charge oftechnical education of State Governments of such States where theInstitutes are located, ex officio; (c) the industry partner of eachof the Institutes established in the public-private-partnership mode;(d) the Chairpersons of each of the Institutes, ex officio; (e) theDirectors of each of the Institutes, ex officio; (f) four persons tobe nominated by the Central Government, one each to represent

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the Ministry concerned with finance, technical education, scienceand technology and information technology; (g) three persons fromthe information technology industry to be nominated by theCouncil, from a panel comprised of two names recommended byeach Institute; (h) three persons of eminence in research ininformation technology to be nominated by the Council, from apanel comprised of two names recommended by each Institute;(i) three persons to represent persons of eminence from academiaor civil society to be nominated by the Council, from a panelcomprised of two names recommended by each State Governmentof such States where Institutes are located. Sub-clause (3) of thesaid clause provides that the Council shall have a Secretariat witha Secretary to be appointed in such manner as may be prescribed.Sub-clause (4) of the said clause provides that the Council mayconstitute a Standing Committee of the Indian Institute ofInformation Technology Council to assist the Council in dischargeof its duties and responsibilities. Sub-clause (5) of the said clauseprovides that the expenditure on the Council shall be met by theCentral Government.

Clause 35.—This clause provides the term of office andallowances payable to members of Council. Sub-clause (1) of thesaid clause provides that save as otherwise provided in thissection, the term of office of a member of the Council, other thanan ex officio member, shall be for a period of three years from thedate of nomination. Sub-clause (2) of the said clause provides thatthe term of office of an ex officio member shall continue so longas he holds the office by virtue of which he is a member. Sub-clause (3) of the said clause provides that the members of theCouncil shall be entitled to such other travelling and such otherallowances, as may be prescribed, for attending meetings of theCouncil or its Committees.

Clause 36.—This clause deals with functions of Council.Sub-clause (1) of the said clause provides that the Council shallcoordinate the activities of all the Institutes. Sub-clause (2) of thesaid clause provides that without prejudice to the provisions ofsub-section (1), the Council shall perform the following functions—(a) to recommend to the Central Government, the institution ofscholarships including research and for the benefit of studentsbelonging to the Scheduled Castes, the Scheduled Tribes and othersocially and educationally backward classes of citizens; (b) torecommend to the Central Government, proposals forestablishment of new Institutes of Information Technology in thepublic-private-partnership mode; (c) to deliberate on such mattersof common interest to Institutes as may be referred to it by anyInstitute; (d) to perform such other functions as may be referredto it by the Central Government or any State Government andnothing in this section shall derogate the powers and functionsvested by law in the Board or Senate or other authorities of eachInstitute. Sub-clause (3) of the said clause provides that the

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Chairperson of the Council shall ordinarily preside at the meetingsof the Council and in his absence any other member, chosen bythe members present from amongst themselves at the meeting,shall preside at the meeting.

Clause 37.—This clause deals with acts and proceedings notto be invalidated by vacancies, etc. It provides that no act ofCouncil, or any Institute or Board or Senate or any other body set-up under this Act or the Statutes, shall be invalid merely by reasonof — (a) any vacancy or defect in the constitution thereof; or(b) any irregularity in its procedure not affecting the merits of thecase; or (c) any defect in the selection, nomination or appointmentof a person acting as a member thereof.

Clause 38.—This clause deals with returns and informationto be provided to Central Government or State Government. Sub-clause (1) of the said clause provides that every Institute shallfurnish to the Central Government such returns or otherinformation with respect to its policies or activities as the CentralGovernment may, for the purpose of reporting to Parliament or forthe making of policy, from time to time require. Sub-clause (2) ofthe said clause provides that every Institute, established in thepublic-private-partnership mode, shall furnish to the StateGovernment in which such Institute is located, such returns orother information with respect to its policies or activities as thatGovernment may, for the purpose of reporting to the concernedState Legislature or for the making of policy, from time to timerequire.

Clause 39.—This clause deals with powers of CentralGovernment to issue directions. It provides that the Institute shallcarry out such directions as may be issued to it from time to timeby the Central Government for the efficient administration of thisAct.

Clause 40.—This clause provides that the Institute to be apublic authority under Right to Information Act, 2005. It providesthat the provisions of the said Act shall apply to each Institute,including Institutes established in the public-private-partnershipmode, as if it were a public authority defined in clause (h) ofsection 2 of the said Act.

Clause 41 .—This clause relates to power of CentralGovernment to make rules. Sub-clause (1) of the said clauseprovides that the Central Government may, by notification makerules for carrying out the provisions of this Act. Sub-clause (2) ofthe said clause provides that in particular, and without prejudice tothe generality of the foregoing power, such rules may provide forall or any of the following matters— (a) the form and manner inwhich the State Government shall submit proposal to the CentralGovernment under sub-section (2) of section 10; (b) the criteriafor examination of the proposal of the State Government undersub-section (3) of section 10; (c) the form of balance sheet and

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statement of income and expenditure and the accounting standardsunder sub-section (2) of section 27; (d) the manner ofappointment of Secretary under sub-section (3) of section 34;(e) the travelling and such other allowances payable to themembers of the Council for attending meetings of the Council orits Committees under sub-section (3) of section 35; (f) any othermatter which is to be or may be, prescribed or in respect ofwhich provision is to be made by the Central Government byrules.

Clause 42.—This clause relates to transitional provisions.Sub-clause (1) of the said clause provides that notwithstandinganything contained in this Act––(a) the Board of every Institutefunctioning as such immediately before the commencement of thisAct shall continue to function until a new Board is constituted forthat Institute under this Act, but on the constitution of a newBoard under this Act, the members of the Board holding officebefore such commencement of this Act shall cease to hold office;(b) every Senate constituted in relation to every Institute beforethe commencement of this Act shall be deemed to be the Senateconstituted under this Act until a Senate is constituted under thisAct for that Institute, but on the constitution of the new Senateunder this Act, the members of the Senate holding office beforethe commencement of this Act shall cease to hold office; (c) untilthe first Statutes and the Ordinances are made under this Act, theStatutes, the Ordinances, the rules, regulations and bye-laws ofeach Institute as in force, immediately before the commencementof this Act, shall continue to apply to the corresponding Institutein so for as they are not inconsistent with the provisions of thisAct. Sub-clause (2) of the said clause provides that the CentralGovernment may, without prejudice to the provisions of sub-section (1), if it considers necessary and expedient, bynotification, take such measures which may be necessary for thesmooth transfer of the existing Institute mentioned in column (3)of the Schedule to the corresponding Institute mentioned undercolumn (5) of the Schedule.

Clause 43.—This clause deals with power to removedifficulties. Sub-clause (1) of the said clause provides that if anydifficulty arises in giving effect to the provisions of this Act, theCentral Government may, by order published in the OfficialGazette, make such provisions or give such directions notinconsistent with the provisions of this Act, as appears to it to benecessary or expedient for removing the difficulty and no suchorder shall be made under this section after the expiry of theperiod of three years from the date of commencement of this Act.Sub-clause (2) of the said clause provides that every order madeunder this section shall be laid, as soon as may be after it is made,before each House of Parliament.

Clause 44.—This clause deals with laying of rules andnotifications. It provides that every rule made and every notification

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issued by the Central Government under this Act, shall be laid, assoon as may be after it is made or issued, before each House ofParliament, while it is in session, for a total period of thirty dayswhich may be comprised in one session or in two or moresuccessive sessions, and if, before the expiry of the sessionimmediately following the session or the successive sessionsaforesaid, both Houses agree in making any modification in therule or notification or both Houses agree that the rule ornotification should not be made or issued, the rule or notificationshall thereafter have effect only in such modified form or be of noeffect, as the case may be; so, however, that any suchmodification or annulment shall be without prejudice to the validityof anything previously done under that rule or notification.

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FINANCIAL MEMORANDUM

Sub-clause (1) of clause 4 of the Bill provides that everyexisting Institute mentioned in column (3) of the Schedule shall bea body corporate by the corresponding name as mentioned incolumn (5) of the Schedule. The four existing Indian Institutes ofInformation Technology are centrally funded for meeting theirexpenditure. During the 11th Plan period these Institutes weresanctioned grants-in-aid to the tune of Rs. 649.86 crore for meetingtheir recurring and non-recurring expenditure.

2. Sub-clause (1) of clause 10 of the Bill provides forestablishment of an Institute. Sub-clause (2) provides that for thepurpose of establishing an Institute in the public-private-partnershipmode, a State Government shall identify an industry partner forcollaboration and submit a proposal to the Central Government insuch form and manner as may be prescribed. The financialrequirement for setting up of these Institutes is estimatedat Rs. 2808.71 crore (Rs. 2558.71 crore, for non-recurringexpenditure, Rs. 200 crore for recurring expenditure and Rs. 50.00crore, for faculty development expenditure) during the nine yearscommencing from the financial year 2012-13.

3. Clause 21 of the Bill, inter alia, provides that the CentralGovernment may grant such sums of money, as are required bysuch Institute or Institutes fully funded by the Central Government,for supporting the Institute for its operation, management andmaintenance, after due appropriation made by Parliament by law inthis behalf. The clause further provides that the Central Governmentshall provide to each such Institute, including Institutes establishedin the public-private partnership mode, grants of such sums ofmoney as are required to meet the expenditure on scholarships andfellowships instituted by it, including scholarships or fellowships forstudents from socially and educationally backward classes orcategories of citizens enrolled in such Institute. The expenditurewould be met from the Consolidated Fund of India through thebudgetary provision under the Department of Higher Education ofthe Ministry of Human Resource Development.

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MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 24 of the Bill empowers the Board to frame, with theprior approval of the Central Government, the first Statutes of eachInstitute. A copy of such Statutes shall be laid before each Houseof Parliament.

2. Clause 26 of the Bill empowers the Senate of each Instituteto make Ordinances consistent with the provisions of the Act andthe Statutes. The matters in respect of which such Ordinances maybe made relate, inter alia, to the admission of the students to theInstitute; the courses of study to be laid down for all degrees anddiplomas of the Institute; the conditions under which students shallbe admitted to the degree or diploma courses and to theexaminations of the Institute, and shall be eligible for degrees anddiplomas; the conditions of award of the fellowships, scholarships,exhibitions, medals and prizes; the conditions and mode ofappointment and duties of examining bodies, examiners andmoderators; the conduct of examinations; the maintenance ofdiscipline among the students of the Institute; and any other matterwhich by this Act or the Statutes is to be or may be provided forby the Ordinances.

3. Sub-clause (1) of clause 41 of the Bill empowers theCentral Government to make rules for carrying out the provisions ofthe Act. Sub-clause (2) specifies the matters in respect of whichsuch rules may be made. These matters relate to (a) the form andmanner in which the State Government shall submit proposal to theCentral Government under sub-section (2) of section 10; (b) thecriteria for examination of the proposal of the State Governmentunder sub-section (3) of section 10; (c) the form of balance sheetand statement of income or expenditure and the accountingstandards under sub-section (2) of section 27; (d) the manner ofappointment of Secretary under sub-section (3) of section 34;(e) the travelling and such other allowances payable to the membersof the Council for attending meetings of the Council or itsCommittees under sub-section (3) of section 35; (f) any othermatter which is to be or may be, prescribed or in respect of whichprovision is to be made by the Central Government by rules.

4. Sub-clause (1) of clause 43 of the Bill empowers theCentral Government, by order published in the Official Gazette, tomake such provisions or give such directions not inconsistent withthe provisions of the Act, as appears to it to be necessary orexpedient for removing the difficulty and such an order is not to bemade after the expiry of a period of three years from the date ofcommencement of the Act and that such order shall be laid beforeeach House of Parliament.

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5. Clause 44 of the Bill provides that every rule made andevery notification issued by the Central Government are required tobe laid before each House of Parliament.

6. The matters in respect of which the Statutes, Ordinancesor rules may be made pertain to matters of procedure andadministrative details for which it is not practicable to make anyprovision in the Bill. The delegation of legislative power is,therefore, of a normal character.

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LOK SABHA

A

BILL

to declare certain institutions of information technology to beinstitutions of national importance with a view to develop newknowledge in information technology and to providemanpower of global standards for the information technologyindustry and to establish other Institutions of InformationTechnology and to provide for certain other mattersconnected with such institutions or incidental thereto.

(Shri M.M. Pallam Raju, Minister of Human Resource Development)

Printed at : Bengal Offset Works, 335, Khajoor Road, Karol Bagh, New Delhi-110005.