The National Knowledge Commission (NKC) would like a independent regulatory authority for knowledge development apart from the existing University Grants Commission (UGC).
The proposal was likely to be opposed by the union Ministry.
Speaking here at the All India Management Association (AIMA) and NKC, Sam Pitroda, chairman of NKC said, "The main source of funding would be UGC but the independent regulator will lay down policy guidelines."
The independent authority will help in areas like quality control and growth and also assist in providing accredition policies, added Pitroda.
He said the government decided to spend about $67.5 billion for education in the 11th five year plan, five times more than the allocation in the 10th plan period, thus increasing share of education in the total plan outlay from 7.7 per cent to 20 per cent in the 11th plan.
The government extended the term of NKC till March 2009.
According Amitabh Mattoo, vice chancellor of the University of Jammu and Kashmir, all new institutions would have to be benchmarked higher than existing universities.