Speaking to reporters after performing a ceremony at the campus of Central University of Punjab, Badal said students failing in annual examination till class eighth should not be promoted to next class.
"The application of these provisions has appalling impact on the standard of education," he said.
The no detention policy introduced under the Right to Education Act automatically promotes students up to Class VIII. Critics have argued that the policy has led to poor learning outcome in classes.
He said it was a matter of pride for the Malwa area, where this varsity has come up, as universities are the most important component of higher education.
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He said that people of an area can take advantage of such prestigious institutions only if the primary education is up to mark and of high standards.
He said the varsity has already brought laurels for the state by figuring in the list of top 13 central universities in country.
He said that as a pilot project the Meritorious School at Bathinda could be adopted that has a number of intelligent and deserving students.