A foreign university aspiring to set up a campus in India will have to deposit Rs 50 crore (Rs 500 million) as corpus fund and cannot take back the surplus generated from education activities in the country.
These tough conditions are part of a Bill approved by the Union Cabinet on Monday to allow entry and operation of foreign education providers in India.
After hanging fire for over four years, the Foreign Educational Institution (Regulation of Entry and Operation) Bill, 2010, was cleared by the Union Cabinet presided by Prime Minister Manmohan Singh. This paves way for its introduction in Parliament.
The major provision of the bill are conditions like Rs 50 crore as corpus fund to be deposited by the aspiring institute to be allowed to operate in India.
Each institute will have to be registered with the university Grants Commission or any regulatory body in place at the time of registration.
The bill has a provision under which the government can reject an application of a university if it feels that venture will have an adverse impact on national security.
"This bill is a milestone which will enhance choices, increase competition and benchmark quality," HRD Minister Kapil Sibal said after the approval of the bill by Cabinet.
