Significantly, it has suggested that seats which fall vacant after the completion of counselling sessions "shall not be treated as a management quota", but be used to accommodate students on the waiting list.
The panel has recommended setting up of a National Testing Service for conduct of the exam and proposed that it be an independent body seeking the support of CBSE or outsourcing the work to other agencies.
At present over 11,000 institutes, both engineering and management, come under the purview of All India Council for Technical Education (AICTE).
"The seats which fall vacant after the completion of counselling sessions shall not be treated as a management quota, but shall be used to accommodate students on the waiting lists of these examinations," the report of the AICTE review committee said.
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The recommendations have been posted on the website mygov.In to seek the views of stakeholders.
"Therefore, it is proposed that a national testing agency be established under AICTE. It will endeavour to have a single national entrance test for all institutions under it," the report said.
In its report, the committee has also suggested that AICTE should be transformed into an "apex constitutional authority" and emphasised on doing away with the affiliation system within a decade.
The recommendations come two years after the HRD Ministry then headed by Kapil Sibal had proposed to have a similar national testing agency to conduct various kinds of national level entrance examinations. A task force was also constituted to take the proposal forward, but little was heard about the it since then.
Recognising the need for restructuring and strengthening the AICTE to address the challenges, the Human Resource Development Ministry had set up a review committee led by former education secretary M K Kaw in November 2014.