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New Education Council Replacing UGC Lacks Funding Powers

Harshit pic - Tuesday, Dec 16, 2025
Last Updated on Dec 16, 2025 06:37 PM

India’s higher education landscape is set for a major regulatory overhaul with the proposed Viksit Bharat Shiksha Adhishthan Bill, 2025. The legislation, expected to be introduced in Parliament during the ongoing session, seeks to streamline governance by replacing multiple regulatory bodies with a single overarching framework.

While the Bill promises simplification and reduced regulatory overlap, it has also sparked debate over the balance of power it creates. Notably, the new regulatory council will not control funding or fees, yet it will wield significantly enhanced penalty powers over higher education institutions.

As policymakers, academicians, and institutions examine the proposed changes, questions are being raised about accountability, autonomy, and the practical implications of a regulator that can penalise heavily without controlling financial levers.

What the Viksit Bharat Shiksha Adhishthan Bill Proposes

The Viksit Bharat Shiksha Adhishthan Bill, 2025, aims to establish an umbrella commission that will guide and coordinate higher education regulation in India. This commission will oversee three specialised councils responsible for regulation, academic standards, and accreditation respectively.

By consolidating functions currently performed by the University Grants Commission, the All India Council for Technical Education, and the National Council for Teacher Education, the Bill seeks to eliminate duplication and create a unified regulatory vision aligned with long-term national education goals.

UGC, AICTE and NCTE to Be Repealed

A key feature of the Bill is the repeal of the UGC Act of 1956, the AICTE Act of 1987, and the NCTE Act of 1993. These bodies, which have historically governed funding, standards, and approvals across universities and colleges, will be dissolved once the new framework comes into force.

The functions of these regulators will be absorbed into the new commission and its councils, marking one of the most sweeping reforms in India’s higher education governance since independence.

No Grant-Giving Powers for the Regulatory Council

Unlike the UGC and AICTE, the proposed regulatory council will not have the authority to disburse grants to higher education institutions. Funding for centrally funded institutions will remain outside its purview and will instead be handled through mechanisms devised by the Ministry of Education.

This separation reflects the National Education Policy 2020’s emphasis on keeping funding distinct from regulation and standard-setting, with the aim of allowing regulators to focus purely on academic quality and compliance.

Fee Regulation Powers Also Removed

Another notable omission in the Bill is the absence of powers to regulate fees charged by higher education institutions. Earlier frameworks allowed regulators like the UGC and AICTE to influence fee structures through regulations and guidelines.

Under the new system, while the regulatory council is tasked with developing policies to prevent the commercialisation of higher education, it will not directly control or cap fees, raising concerns about affordability and equity.

Penalty Powers Get a Major Boost

Despite limited financial authority, the regulatory council will have substantial punitive powers. The Bill allows penalties ranging from a minimum of Rs 10 lakh to a maximum of Rs 2 crore for violations of the Act.

The steepest penalties apply to institutions established without approval from the Centre or the relevant state government. This marks a dramatic increase from the earlier regime, where the UGC could impose fines of only up to Rs 1,000.

Structure of the New Commission

The Viksit Bharat Shiksha Adhishthan will be headed by a chairperson appointed by the President of India on the recommendation of the central government. The commission will include up to 12 members, including the presidents of the three councils, senior government officials, academicians, and domain experts.

Its role will be largely strategic, providing direction for the growth of higher education, promoting multidisciplinary institutions, and integrating Bharatiya knowledge systems, languages, and arts into academic frameworks.

Role of the Three Councils

The Regulatory Council will act as the common higher education regulator, ensuring institutions meet minimum standards, achieve accreditation benchmarks, and maintain transparency through public disclosure of financial and academic information.

The Standards Council will define learning outcomes, qualification frameworks, and academic norms, while the Accreditation Council will oversee institutional assessments through a structured accreditation framework.

Accreditation and Autonomy Push

A major objective of the Bill is to encourage higher education institutions to become autonomous and degree-granting over time. The Regulatory Council will facilitate this transition by supporting institutions in meeting accreditation benchmarks.

Accreditation outcomes will play a crucial role in determining the level of autonomy granted, with transparent disclosures forming the basis for evaluation and oversight.

Centre Retains Final Authority

The Bill clearly states that in the event of disagreements on policy matters between the Centre and the commission or councils, the decision of the central government will prevail. This provision reinforces the Centre’s ultimate control over higher education governance.

Additionally, the Centre will have the power, with presidential approval, to supersede the commission or councils for up to six months under specified circumstances.

Transition and Continuity Measures

Existing regulations framed by the UGC, AICTE, and NCTE will continue to apply until new ones are notified under the proposed Act. Employees of the dissolved bodies will be absorbed into the new commission or councils.

Office-bearers of the existing regulators will vacate their positions once the transition occurs, with provisions for compensation to address premature termination.

Exclusions Under the New Framework

The Bill does not apply to professional education sectors such as medicine, law, dentistry, pharmacy, veterinary sciences, and related fields, which will continue to be governed by their respective councils.

Architecture education will retain a limited linkage, with representatives included in the new councils, though regulatory authority will remain separate.

Rationale Behind the Reform

The statement of objects and reasons accompanying the Bill highlights long-standing concerns about over-regulation, multiple approvals, and inconsistent standards across regulators.

By introducing a technology-driven, single-window regulatory system based on public self-disclosure, the government aims to create a “light but tight” framework that balances autonomy with accountability.

Debate Over Power Without Funding

Critics argue that granting strong penalty powers without corresponding control over funding or fees could create an imbalance, potentially increasing compliance pressure without addressing financial sustainability.

Supporters, however, contend that separating funding from regulation will reduce conflicts of interest and allow regulators to focus squarely on quality, transparency, and outcomes.

What This Means for Institutions and Students

For institutions, the new regime promises fewer regulators but stricter compliance expectations. Transparency, accreditation, and adherence to standards will be central to institutional survival and growth.

For students, the long-term impact will depend on how effectively the new system curbs commercialisation while improving academic quality and global competitiveness.

The Road Ahead

As the Bill moves through Parliament, its provisions are likely to face close scrutiny from lawmakers, educators, and stakeholders across the sector.

Whether the Viksit Bharat Shiksha Adhishthan can deliver on its promise of simplified, effective regulation without over-centralisation will shape the future of higher education in India for decades to come.

Also Read: EC Draft Rolls in Bengal: 58 Lakh Names Deleted in SIR

About the Author:

Harshit Raj Writter

Harshit Raj

I’m Harshit Raj, a content writer and creator specializing in news, articles, blogs, web stories, and videos. My work focuses on delivering reliable information with a creative touch, ensuring content that both informs and captivates. Whether it’s a quick scroll through a news story or a deep dive into an article, I strive to make every piece meaningful and relevant for today’s fast-moving digital audience. With experience in digital media, SEO-driven writing, and storytelling, I bring versatility to content across formats and platforms. My goal is to craft content that not only engages readers but also strengthens brand presence, drives traffic, and builds lasting audience trust.

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