The Cabinet Committee on Economic Affairs has approved a proposal to provide financial support of Rs. 2727.10 crore to Nalanda University over a period of 12 years from 2010-11 to 2021-22.

The salient features of the financial support are:-

i) Rs. 1749.65 crore will be spent towards capital cost of the project.

ii) Rs. 977.45 crore has been provided to meet the University`s recurring expenditure for eight years from 2014-15 to 2021-22.

iii) iv) The main campus, including residences of teaching and non-teaching staff is being built on a plot measuring 455 acres, provided free of cost by the Government of Bihar on a 99-year lease.

v) vi) The University has already received US$ 11.55 lakh as voluntary contribution from China, Thailand and Laos. Singapore has offered to build a library at a cost of US$ 5 million. Australia has commited Australian $ 1 million for a Chair in the School of Ecology and Environment Studies. Japan has pledged assistance for the renovation of highways leading to the University. Other participating countries will contribute as the University progresses.

vii) viii) An Endowments Committee has been constituted to raise funds through public-private partnerships.

ix) x) The University will also start generating its own revenues to meet a part of its recurring expenditure when teaching commences in phases.

xi) xii) The approved financial support will be other than voluntary contributions from participating countries, endowments to be received through public-private partnerhsips, and the revenues generated by the University in due course.

The establishment of Nalanda University will benefit 2450 Indian and foreign students by the end of 2021-22.

The funding by the Government of India would enable the University to establish itself as an international institution of excellence.

455 acres of land has been provided by the Government of Bihar. Construction in the first phase is expected to begin this year. Teaching in the first two Schools is expected to begin from leased premises in September, 2014. Teaching in all the seven Schools will commence in the academic year 2017-18.

A Headquarters Agreement granting privileges and immunities to the academic staff has been signed between the Government of India and Nalanda University in July, 2013 to facilitate hiring of the best faculty from across the world.

An Inter-governmental Memorandum of Understanding came into force in October, 2013 to further reinforce the international status of the University.

Background:

At the 4th East Asia Summit (EAS), held in Thailand on October 25, 2009, the EAS Member States issued a Joint Press Statement which supported the establishment of Nalanda University (at Rajgir in Bihar, near the ancient Nalanda) as a non-state, non-profit, secular and self-governing international institution. The university came into existence in November, 2010 after notification of the Nalanda University Act, 2010.

The Government of India`s financial support is designed to meet the capital and recurring expenditure during the establishment phase of the University.

The jurisdiction of the University shall extend to the whole of India and to centres established within or outside India. It is an international institution of national importance. Although the University is situated in Bihar, it potentially covers the whole world.

The University was established under the Nalanda University Act, 2010, which came into force on November 25, 2010, The President of India, Shri Pranab Mukherjee, is the Visitor Professor, Amartya Sen is the Chancellor and Chairman of the Governing Board. Dr. Gopa Sabharwal is the Vice-Chancellor The university has commenced operations from its office in New Delhi. A boundary wall has been constructed on the land acquired in Rajgir, Bihar. An Architectural Design Competition, inviting Indian and foreign companies to propose a master plan for the University`s campus and designs of buildings that will come up in Phase I of construction was launched on November 21, 2012. M/s Vastu Shilpa Consultants were declared the winner by an international jury on May 6, 2013.

Financial support for establishing an international university to fund capital and recurring establishment costs and affirm international status. The Government approved financial support to Nalanda University to fund capital construction and recurring establishment costs, separate from voluntary international contributions, endowments raised via public private partnerships, and future University revenues; an Endowments Committee will raise funds, phased teaching will begin from leased premises ahead of campus completion, and a Headquarters Agreement and Inter governmental Memorandum reinforce the University's international status and facilitate faculty recruitment.