The university, which would focus on research and higher studies, would be named after late Prime Minister Indira Gandhi, who represented Raebarelli during a substantive part of her political career.
At present, the constituency is represented by Congress president Sonia Gandhi.
The proposal, which received the Union Cabinet's nod today, would be set up at a cost of Rs 500 crore during the 12th Plan Period.
A bill namely the 'Indira Gandhi National University for Women' will be introduced in the coming Monsoon Session of Parliament, I&B Minister Manish Tewari told reporters here, adding that the varsity will be set up following its passage.
Of the total of 121 crore population in the country, there are 58.6 crore women. They constitute 9.5 crore of the population in Uttar Pradesh alone.