Patna,(BiharTimes): The Union Cabinet will have to take a decision on granting full financial independence to the institution to Nalanda University even as the finance ministry refused to budge from its stand that the project would have to be governed and managed by the same oversight rules as other government-aided bodies.

Reports from New Delhi said that while the Ministry of External Affairs and the university have argued that such scrutiny would dilute the autonomous character intended for the international university, the finance ministry maintains that, as of now, the university is funded by the Indian government and rules applicable here have to be followed.

As reported earlier the first objection to the project came from the Department of Economic Affairs in the finance ministry, which queried a provision in the Nalanda (Amendment) Act Bill 2013, where it was stated that “the Government of India may meet both capital and recurring expenditure of the university to the extent required.”

According to the DEA this amendment “creates an open-ended liability” for the government and should be amended to “provide grants-in-aid to the university to meet its capital and recurring expenditure”.

An Indian Express report said that this opened up a set of unexpected complications as grants-in-aid necessitate a level of government control and will require the university to have terms and condition of employment that are similar to Central government employees. This will also make reservations mandatory. The IITs are a good example of institutions governed by grants-in-aid rules.

Accepting these norms would impact current tax-free salary structures of the vice-chancellor, dean and those proposed for faculty members.