Regulatory Insights

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6 January 2023

UGC issues draft regulations to set up campuses by Foreign Universities and Foreign Educational Institutions in India

In brief

In line with the recommendations of the National Education Policy, 2020, the University Grants Commission (UGC) released the Draft University Grants Commission (Setting up and Operation of Campuses of Foreign Higher Educational Institutions in India) Regulations, 2023 (draft regulations)¹ for public comments, suggestions and f eedback from all stakeholders. These suggestions can be sent to [email protected] by 18 January 2023.

The draf t regulations provide a framework to allow the entry of higher-ranked foreign universities and educational institutions of repute to set up campuses in India to offer undergraduate, postgraduate, doctoral, post-doctoral and other programmes and research and award degrees, diplomas and certificates in all disciplines.

In detail

The salient f eatures of the draft regulations are listed below.

Focus area Relevant provision

Foreign University and Foreign Educational Institution (FHEIs)

• FHEIs, recognised or established in any legal form, must be duly authorised to offer academic and research programmes at the undergraduate or higher levels, within and outside its home jurisdiction.

Eligibility criteria • Foreign University: It should have secured a position within top 500 of overall or subject-wise global rankings.

• Foreign Educational Institution: It should be a reputed institution in its home jurisdiction.

1 University Grants Commission (Setting up and Operation of Campuses of Foreign Higher Educational Institutions in India) Regulations, 2023

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Procedure for approval • No FHEI will set up campuses in India without the approval of the UGC – eligible FHEIs will apply online to UGC along with a non-refundable processing fee.

• The applicant must submit the following information:

- Permission by its governing board for setting up campus(es) in India.

- Inf ormation on infrastructural facilities, faculty, fee structure, academic programs, courses, curriculum, financial resources for setting up operations and campus.

- Details of alternative arrangements for students in case of course or programme disruption or discontinuation or closure of the campuses . - An undertaking to maintain similar quality standards and recognition to

corresponding qualifications awarded by the FHEI in its home country in all respects including higher education and employment.

- The latest accreditation or quality assurance report from a recognised body.

• Standing Committee (SC) constituted by UGC will examine and assess each application and make recommendations.

• Recommendations of the SC will be placed before the UGC within 45 days f rom receipt of application.

• Based on the recommendations of the SC within 45 days, the UGC will grant initial in-principal approval and issue a Letter of Intent to set up campus in India within two years.

• The permission for commencing operation of the Indian campus will initially be granted for a period of ten years, renewable for further ten years and onwards.

Admission and fee structure

• FHEI will evolve its own admission process and criteria to admit domestic as well as f oreign students.

• FHEI will display details relating to fee structure, refund policy, number of seats in a programme, eligibility qualifications and admission process via a prospectus uploaded on its website 60 days prior to the commencement of admissions.

Appointment of faculty and other related provisions

• FHEI will have autonomy to recruit faculty and staff from India and abroad.

• FHEI will decide the qualifications, salary structure and other conditions for appointing faculty and staff, ensuring that those are at par with the main campus of the country of origin.

• FHEI will ensure that the foreign faculty appointed at the Indian campus are staying in India for a reasonable period.

General conditions • FHEI will not admit students and collect fees unless the campus set up is duly approved by UGC.

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• Programmes offered under these draft regulations will not be allowed in online and ODL mode.

• The qualifications awarded to the students in the Indian campus will be recognised and treated as equivalent to the corresponding qualifications awarded by the FHEI in its main campus located in the country of origin.

• Qualifications awarded under these regulations will be equivalent to any corresponding degree awarded by the Indian higher educational institution:

- No f urther requirement of seeking equivalence from any authority.

- The degree will have all the benefits, rights, and privileges as obtained in the case of a degree awarded by an Indian higher educational institution ordinarily.

• FHEI will arrange for adequate physical infrastructure in terms of built-up space for their academic programmes.

• FHEI will not act as a representative office of the parent entity to undertake promotional activities for their programmes in their home jurisdiction or any other jurisdiction outside India.

• FHEI will have a mechanism to address students’ grievances.

Foreign exchange control

• Cross-border movement of funds and maintenance of foreign currency accounts, mode of payments, remittance, repatriation and sale of proceeds will be in compliance with the provisions of Foreign Exchange Management Act, 1999 (FEMA 1999) and rules or regulations thereunder.

• FHEI will submit an audit report annually to UGC certifying that the operations of the FHEI in India are in compliance with the provisions of FEMA 1999 and rules or regulations thereunder and any other applicable central or state laws or policies.

The takeaways

The draf t regulations propose to provide a first of its kind window for high ranked and reputed foreign higher education players to set-up their presence in India. Whilst the welcome move from UGC to allow FHEIs to operate in India with autonomy is pathbreaking, however, certain aspects such as type of entity that would be allowed for setting up of a campus by FHEI in India, which education rankings to be considered for meeting eligibility criteria, initial corpus requirement for set-up, etc. need further clarity and may form part of the final version of the regulations.

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Regulatory Insights

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