The Central Universities (Amendment) Bill, 2014 was introduced by HRD Minister Smriti Irani.
The new central university at Motihari in East Champaran would be named after Mahatma Gandhi, a place from where he experimented with the idea of 'satyagrah' during the 'neel andolan (indigo movement)' in 1917.
Explaining the need for establishment of second central university in the state, the bill said that quality of higher education in the state was not being met "adequately" with just one central university located in Gaya.
It will have its territorial jurisdiction extending to the territory in the south of river Ganges and the new university at Motihari will have its jurisdiction north of the river in the state.
The initial expenditure to set up the university at Motihari would be Rs 240 crore and the expenditure would be met from the Consolidated Fund of India through budgetary provision of the HRD Ministry.