New Delhi: The country's 22nd Indian Institute of Management (IIM) will be established in Guwahati with an investment of Rs 555 crore, as Parliament cleared a Bill on Wednesday. Union Education Minister Dharmendra Pradhan said the institution will start admitting students from the current academic year.

The Indian Institutes of Management (Amendment) Bill, 2025, was passed by the Rajya Sabha with a voice vote, despite an Opposition walkout. It was cleared by the Lok Sabha on Tuesday.

The bill will go for Presidential assent after passage in both Houses. Assam goes to polls early next year.

Pradhan said IIM-Guwahati, with a central outlay of Rs 555 crore, will contribute to making India the third largest economy in the world.

Replying to discussion, he said this will be the 9th IIM since Narendra Modi became Prime Minister in 2014. From 1961 to 2014, only 13 IIMs were created, serving 3,500 students. In 2024-25, student strength is 9,800.

In 2017, the government allowed IIMs to award degrees instead of only PG Diplomas, making them institutions of national importance.

"Now with enactment of the 2017 Act, IIM Guwahati will function as a full-fledged university-like institution," said Pradhan.

He added that Assam's development was neglected during 2004-14 and highlighted the government's support for foreign universities and new IITs abroad.

He said IIM-Ahmedabad is known for producing unicorns, and establishing IIM Guwahati under the special development package will benefit Assam and the Northeast.

Currently, 21 IIMs are institutions of national importance. Members expressed concerns over vacant faculty posts and student suicides, with requests for more IIMs in Odisha and Telangana.

Several MPs highlighted the importance of spreading education and giving priority to Northeast students for admissions.