"Universities can either be created out of Acts of Parliament or an Act of Legislatures. All the Universities that have been created by Act of Parliament are funded by the UGC.
"When states have created universities, I think it is important that they also take responsibility to fund them well. Otherwise, it is meaningless to start a university. Nevertheless, we are looking at a Bill which aims at providing some more funding to states' universities also," he said here.
He was replying to a query about the complaints of state universities that a major chunk of UGC funds is given to central universities.
Raju hoped that the proposed bill would be introduced in the budget session of Parliament.
The Union Minister was speaking after inaugurating a building for school of life sciences at the university of Hyderabad here.