Lok Sabha Clears Bill for New IIM in Guwahati with ₹550 Crore Boost

Second IIM in Northeast to support Assam’s development push

 

New Delhi/Guwahati, 19 August 2025 – The Lok Sabha on Tuesday approved the Indian Institutes of Management (Amendment) Bill, 2025, paving the way for a new Indian Institute of Management (IIM) in Guwahati, backed by ₹550 crore in central funding.

The Bill, introduced by Union Education Minister Dharmendra Pradhan, was passed through a voice vote amidst continued protests by the Opposition over the Special Intensive Revision (SIR) of electoral rolls in Bihar. The House was adjourned for the day soon after the Bill's passage.

Move part of Centre’s Special Development Package under peace accord

According to the government, the new IIM will be a key project under the Special Development Package (SDP) for Assam. The establishment is linked to a broader Memorandum of Settlement (MoS) signed between the Centre, the Assam government, and representatives of the United Liberation Front of Assam (ULFA), aimed at fostering peace and inclusive development in the state.

“Given Assam’s strategic location and development aspirations, a second IIM will bring world-class management education to the region and serve as a catalyst for economic transformation,” the Education Ministry noted.

Until IIM Guwahati’s first official Board is constituted under the amended IIM Act, the central government will appoint a body or individuals to perform the Board’s functions, according to the provisions of the Bill.

Currently, India has 21 IIMs, each declared as institutions of national importance. The addition of IIM Guwahati is expected to boost higher education capacity in the Northeast, create skilled human capital, and attract investments in education and innovation.

The Assam government had formally requested the establishment of the institute, citing the need for balanced regional growth and enhanced access to premier management education in the state. The project is seen as both an educational investment and a peacebuilding initiative under the post-accord framework.