The central government Monday decided to provide financial assistance of Rs.27.2 billion ($440 million) to the revived Nalanda University in Bihar's Rajgir district.
The aid, to be provided over 12 years, was approved by the Cabinet Committee on Economic Affairs, an official release said.
The revival of the university will benefit 2,450 Indian and foreign students by the end of 2021-22, the release added.
The government funding would enable it to establish itself as an international institution of excellence.