"In a day or two, the Private University Bill will be introduced," Banerjee said at a function of South Point High School, the largest in the country in terms of student count.
"Why do you have to go to London or other places for higher studies when we can provide the best here?" the chief minister asked.
Banerjee offered the school, which has a space crunch, a 4.2 acre plot near the Eastern Metropolitan Bypass behind Ruby General Hospital and asked the school authorities to set up a college and then a university.
"South Point is a wonderful institution with possibly 20 to 25 lakh alumni spread all over the world," she said about the school.
It was set up by Satikanta Guha and his wife Pritilata in 1954 with 16 students to grow to be one with the highest number of students in the world within a span of 30 years while retaining the position for eight years.
Speaking earlier, Harsh Vardhan Lodha, the trustee of South Point Education Society announced introduction of the Priyamvada Birla Memorial Scholarship for students in undergraduate studies in an engineering, technical or medical colleges within West Bengal.
"The amount of scholarship will be Rs 25 lakh per year and will be given to 2 students each year," Lodha said.