The Tamil Nadu government has moved to relax the land and financial requirements for establishing private universities in the state, with the Tamil Nadu Private Universities (Amendment) Bill, 2026 sent to the President for assent, according to Higher Education Minister P Viswanathan.

Passed by the Tamil Nadu Assembly on September 8, the Bill proposes to replace the existing uniform requirement of 100 acres with different land thresholds based on the location of the proposed university. It also seeks to reduce the mandatory permanent endowment fund from Rs 50 crore to Rs 25 crore.

The Bill has faced opposition from the Communist Party of India (CPI), which extends outside support to the Tamilaga Vettri Kazhagam (TVK)-led coalition government, and the Pattali Makkal Katchi (PMK), as well as teachers’ organisations. Critics have raised concerns about the expansion and possible commercialisation of private higher education.

Governor Rajendra Vishwanath Arlekar has also sought clarifications from the State government on provisions of the Bill. The government has maintained that the proposed changes are aimed at facilitating the establishment of new universities, particularly in urban areas where acquiring 100 acres of contiguous land is difficult.

Here is what the Bill changes and what remains unchanged.

What are the new land requirements?

Under the Tamil Nadu Private Universities Act, 2019, a sponsoring body seeking to establish a private university was required to have at least 100 acres of contiguous land.

The 2026 amendment proposes a location-based system:

The biggest reduction is in Chennai, where the minimum land requirement would fall by 88 per cent.

The government says the revised figures take into account the scarcity of land in urban areas as well as the space required for academic buildings, hostels and other facilities. The changes are also based on recommendations of the Centre's Task Force on Compliance Reduction and Deregulation Phase II.

The endowment change also affects existing universities

The amendment is not limited to the land requirement for new institutions.

The proposed reduction of the permanent endowment from Rs 50 crore to Rs 25 crore would also apply to private universities already established under the 2019 Act. Shiv Nadar University and Sai University, which were established under separate state Acts, would also be covered by the change.

Under the existing Rules, the permanent endowment has to be maintained in a nationalised bank in a fixed deposit and cannot be liquidated without prior government permission.

Why does the government want to relax the norms?

The government says the 100-acre requirement has become difficult to meet, particularly in urban areas.

Higher Education Minister P Viswanathan has said the amendment is intended specifically to facilitate new private universities and attract institutions capable of offering what the government describes as world-class education. He has also rejected the argument that the move amounts to privatisation of higher education.

Why has the Bill faced opposition?

The CPI and PMK opposed the Bill in the Assembly, while the Association of University Teachers urged the government to withdraw it.

AUT general secretary K Raja said lowering the land and financial requirements could lead to a rapid expansion of private universities and affect the affordability and accessibility of higher education, particularly for rural students, first-generation learners and students from economically weaker sections.

CPI state secretary M Veerapandian has also argued that the move could lead to greater privatisation and commercialisation of higher education. The CPI has called instead for the state to expand public higher education institutions based on student demand, employment needs and the state's scientific and technological requirements.

What happened with the 2025 Bill?

The controversy also has a recent history.

In 2025, the previous DMK government introduced a different amendment to the Private Universities Act. That Bill proposed a category of "Brownfield Universities," under which existing government-aided and private colleges could be converted into private universities.

It proposed land requirements of 25 acres in municipal corporation areas, 35 acres in municipal council or town panchayat areas and 50 acres elsewhere for such universities. It also proposed a category of Minority Private Universities.

The proposal faced opposition from political parties and teaching organisations. Academics raised concerns that converting aided colleges could affect reservation, increase the cost of education and create uncertainty over teachers' employment.

The Bill was eventually withdrawn in 2026.

The current Bill does not contain the Brownfield University provision. The government has repeatedly stressed that the 2026 amendment is for establishing new universities.

What safeguards remain?

Reducing the land requirement does not by itself give a sponsoring body permission to start a university.

Under the existing framework, a proposal is subject to scrutiny of the sponsoring body's financial position, infrastructure plans, educational experience, proposed courses and other requirements. The Rules also require details of campus development, buildings, amenities, infrastructure and equipment, including a phased development plan.

The land requirement is only one part of the approval process.

The 2019 Act also contains provisions governing admissions and other aspects of university functioning. The sponsoring body has to provide details of its proposed fee structure, scholarships and concessions for economically and socially disadvantaged students as part of its proposal.

What does the change mean for private higher education?

If the Bill receives assent and comes into force, a prospective university in Greater Chennai would need 12 acres rather than 100 acres of land. The corresponding requirement would be 18 acres in other municipal corporations and municipal councils and 25 acres elsewhere.

That could make it easier for institutions to establish campuses in cities, where land is scarce and expensive. At the same time, the lower financial threshold and wider eligibility have prompted worry about the quick expansion of private universities.

The government sees the change as a way to attract new institutions and investment. Critics see the lower thresholds as potentially opening the sector to more private players without resolving existing concerns around affordability and access.

What happens next?

The Bill is now with the President for assent, according to the Higher Education Minister. The state Governor had earlier sought clarifications on its provisions. The Bill will have to receive the required assent and be brought into force before the proposed changes take effect.