It will prepare a blue print for creating a special purpose vehicle to take the concept of National Testing Agency (NTA) forward.
The Central Advisory Board for Education (CABE), the highest decision making body on education, had earlier endorsed the proposal, as the move would relieve different bodies such as UGC and the IIT from the responsibility of holding national-level tests.
Higher Education secretary Ashok Thakur had said the proposed agency might be formed through an executive order and not set up as a statutory body through an act of Parliament.
It would be an "internationally benchmarked testing and assessment organisation" conducting "efficient, transparent and international standards tests in order to assess competency of candidates for admission and recruitment purposes".
It would also process results, collect them from state boards and normalise them, if necessary, to prepare a final merit list.
According to a Ministry statement, the rationale for setting up of the body lies in ensuring that multiplicity of entrance examination leading to stress on the students is addressed in a comprehensive manner by formulating a uniform entrance examination for admissions in different branches of higher learning.