The in-principle approval was granted by Planning Commission in year 2006 for development of a world class institution on corporate affairs. Subsequently, detailed consultations were undertaken by MCA with the Planning commission, corporate leaders, national & international institutions such as IIT Kharagpur, Yale university, George Washington university and multilateral bodies such as commonwealth secretariat regarding structure and functions of the proposed institution. Professional institutions like ICAI, ICSI, ICWAI were also consulted regarding the feasibility and relevance of such institute.
The proposal for setting up of IICA was approved by Planning Commission in Feb 2007 with gross budgetary support of Rs 47 Crore for the year 2007-08. A High Level Group comprising of experts and stakeholders in the field of corporate affairs was formed to deliberate upon the blueprint for establishment & operation of IICA and advise upon the preparation of Detailed Project Report (DPR).
Proposal of MCA for seeking budgetary allocation of Rs 211 Crores during the 11 Five Year Plan was considered by the Expenditure Finance Committee (EFC) in Dec 2007 towards establishment of IICA. The DPR was discussed in the EFC in Jan 2008. Views of other ministries like DoPT, M/o HRD were also sought. DoPT expressed the need of IICA for training of ICLS officers in the same manner as is done for other organised services. MHRD expressed that the establishment of IICA is a right step on the direction of creating knowledge infrastructure on corporate affairs related matters and IICA could assist the established educational institutions to develop their curriculum on the basis of changing needs of the corporate sector.
The committee recommended a lean staffing pattern with majority of the posts to be filled on contractual basis and expansion could be on modular basis. The committee also insisted IICA to be conceived as a revenue generating model and in the initial stage at least 33% of the revenue expenditure should be from their activity income. Approval of the cabinet was accorded in May 2008 with an expenditure (both capital and revenue) of Rs 211.00 Crores during XI Five Year Plan. As per the cabinet approval, IICA was envisaged to be fully operational from year 2011-12 and become completely self sufficient by the end of year 2016-17.
Ministry of Corporate Affairs (MCA) introduced a plan scheme of Indian Institute of Corporate Affairs in year 2008-09. Under the scheme, an expenditure of Rs 298.48 Crores was made till 2016-17 against the budgetary provision of Rs 308.36 Crores.