In another key development, the higher education regulator has also approved the proposed guidelines for creating 20 world class institutions in the country.
At a meeting of the Commission here, a proposal to create a chair in the name of Upadhyay was approved, sources said.
Last December, a five-member committee of experts had recommended that Pandit Deen Dayal Upadhyay Chair may also be established by the Commission to study his socio-economic thoughts and 'Integral Humanism'.
There are around 30 personalities on whom a chair can be created in universities. These chairs are approved and then also funded by the UGC, the sources said.
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The sources also said that with the UGC clearing the final draft for creating 20 world class universities, the proposal is likely to go to the Cabinet soon.
The Modi government has been focussing on creating 20 world class institutions, ten in the public sector and ten in the private sector.
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"The draft gives a lot of flexibility and autonomy to
educational institutions to excel," a senior official said.
Meanwhile, the UGC is learnt to have forwarded to the HRD Ministry a report of the Pay Review Committee, the sources said.