New Delhi: The Human Resources Development Ministry finally gave the go-ahead yesterday to the Indian Institutes of Management (IIMs) to set up branches abroad, but indicated that the IIMs would need to increase the intake of students so that students in India do not suffer.

After a meeting with the directors of the six IIMs, Union HRD Minister Arjun Singh said, "I told the IIM directors that I have no objection to the IIMs going to any country, but they should change their memorandum of association [MoA]." The MoAs of the IIMs currently do not permit setting up branches abroad.

"I also told the IIM directors that they should decide among themselves and let me know what they will do to enhance the intake of students so that more Indian students can gain admission to the IIMs," Singh said.

When asked about the desirability of "global branding" of IIMs, the HRD minister said, "We are not against global branding but there should be Indian branding as well."

The minister's emphasis on "Indian branding" of IIMs is a strong indicator of his views that the IIMs should do their utmost to fulfil the needs of Indian students even as they wish to set up branches abroad.

Singh said the IIM directors themselves had conceded that he had never interfered in the autonomous functioning of the IIMs.

The HRD Ministry had earlier refused permission to IIM Bangalore to set up a branch in Singapore. But, on Tuesday, the IIM directors looked relieved.

"There are no differences between the IIMs and the HRD Ministry. The ministry has allowed us to set up branches abroad and the IIMs will amend the MoAs as and when they wish to set up branches abroad," said IIM Bangalore director Prakash Apte.

"Opening up branches abroad will promote the IIMs as a brand and this global branding will also help bring in more foreign investment," Apte said.

"We also assured the government that the IIMs would be increasing the intake of students," Apte added.

While IIM Bangalore proposes to increase its seat intake from 250 to 280 for the MBA programme from the next academic session, IIM Lucknow will be increasing the intake from 300 to 360 next year.

The IIM Kolkata is planning to increase its intake from 270 to 300 students while IIM Ahmedabad proposes to start a one-year management course soon for students for which the intake will be 120. IIM Ahmedabad also has no plans to set up branches abroad "in the near future".