The seven IIMs will be set up in Tamil Nadu, Chhattisgarh, Haryana, Jharkhand, Jammu Kashmir, Uttarakhand and Rajasthan.
Sources said that in Jharkhand, the IIM will be situated in Ranchi and in the initial years it will function as government training institute.
The IIM in Chhattisgarh will be in Raipur, the one in Tamil Nadu in Tiruchirapalli, while Haryana"s will be in Rohtak. The location of IIMs in Uttarakhand, JK and Rajasthan has not been decided yet.
The IIMs are expected to start functioning from the academic year of 2010. The institutes are part of the government's efforts to boost the higher and technical education to the poor students in the country.