The Human Resource Development Ministry has given a 15-day deadline to the university to complete the process, a resolution of which has already been approved by IGNOU's board of management, said a Ministry statement.
The move stands to benefit 1.5 lakh students who had registered for IGNOU's community college development scheme.
IGNOU had launched the scheme in 2009 with tie-ups with colleges and institutes across the country.
But, three years after, it was kept in abeyance pending a review of the functioning of various colleges under the scheme.