Preempting any objections by IIMs about autonomy, the government has decided that all appointments of directors and board members will be done through an independent collegium.

This really avoided any kind of standoff like with the IITs, but Minister Kapil Sibal has also thrown in bonuses and allowed them to expand their campuses abroad.

In their first meeting with the HRD minister, the institutions won the major concession.

"We want them to be totally autonomous. We want them to tell us what works for them," said Sibal.

Always accused of playing big brother in appointments, the ministry has agreed to an independent collegium comprising academics and industrialists that will nominate directors and IIM board members. The government may only choose from their recommendations.

Government has also agreed in-principle to IIMs setting up campus abroad, a long time aspiration of many like IIM- Bangalore, whose proposal for a Singapore campus was earlier rejected.

"He has promised us no interference and a great degree of," said Debashish Chatterjee, IIM-Kozhikode.

"It is great to hear. It really allows our global aspirations," said Professor P Chandra, director, IIM-Bangalore.

Sources said the concerns about salary weren't discussed at the meeting, but unlike the IITs, the IIMs are more or less satisfied with performance related incentives.

Nothing's final yet and the details are being worked out for the next meeting in January, but at least the two parties seem willing to talk and work things out.