NEW DELHI :
After years of deliberations, the Centre has shelved plans to set up an Indian Institute of Management (IIM) in Telangana.
The Union human resource development ministry has cited weak job market and an IIM at Vishakhapatnam in neighbouring Andhra Pradesh as reasons behind the decision, two government officials said, requesting anonymity.
The ministry has conveyed its decision to the Prime Minister’s Office.
“After a feasibility study, the government found that a tough economic and job scenario is impacting the already established new IIMs in the past six years in achieving their full potential. And it will be perhaps unwise to go ahead with a new IIM in Hyderabad," the first of the two officials said.
The second official said since there is already an IIM in Vishakhapatnam, setting up another in Hyderabad is not a good idea.
Since 2014, the National Democratic Alliance government has established seven new IIMs--the coveted business school tags--in Nagpur (Maharashtra), Amritsar (Punjab), Bodh Gaya (Bihar), Sirmaur (Himachal Pradesh), Sambalpur (Odisha), Vishakhapatnam, and Jammu.
The officials cited above said there has also been a growing demand for funds which has had a bearing on the decision.
“Most of the new IIMs are now demanding more funds to the tune of 25-40% more than what was allocated initially. The priority should be to focus on making existing new IIMs strong before even thinking of any expansion," said the second official.
An HRD ministry spokesperson declined to comment.
"After the bifurcation of the state, the Centre has not given us any central institutions," said Kadiyam Srihari, a former deputy chief minister of Telangana and leader of the ruling Telangana Rashtra Samiti.
“I do not know if it is due to political reasons, but an IIM in Hyderabad is a well-placed demand and need. From an institutional point of view, Hyderabad has industries, infra and student absorbing capacity. If smaller cities and towns in other states can get an IIM, why not Telangana and a city like Hyderabad," countered Srihari.
The second official, however, said it would be unfair to say that Telangana does not have national institutions, pointing to the Indian Institute of Technology (IIT) in Hyderabad, National Institute of Technology at Warangal and three central universities.