- The Nalanda University Bill, 2010 was introduced in the Rajya Sabha on August 12, 2010 by the Minister of External Affairs, Shri S.M. Krishna. The Bill was passed by the Lok Sabha on August 26, 2010 and the Rajya Sabha on August 21, 2010.
- The Bill seeks to establish Nalanda University in Bihar as an international institution. The decision was arrived at the Second East Asia Summit in 2007 in Philippines about strengthening regional educational cooperation and later reiterated at the Fourth Summit in Thailand in 2009.
- The Bill declares the Nalanda University as an institution of national importance. It repeals the University of Nalanda Act, 2007. The jurisdiction of the university extends to the whole country.
- A governing board shall be constituted with a fixed term of three years for each member. Members include the Chancellor, the Vice Chancellor, five members among member states (member of East Asia Summit) who give maximum financial assistance, the Secretary in the Ministry of External Affairs, and two representatives of the government of Bihar. The process of appointment of the various authorities is specified in the Bill.
- The President of India shall be the Visitor of the university. He has the power to cause an inspection of the university.
- If the governing board does not take action to the satisfaction of the Visitor, he may issue such directions as he may see fit and the board is bound to comply with such directions. The Visitor also has the power to annul any proceeding of the university if it is not in conformity with the law.
- The governing board shall be responsible for managing the affairs of the university. Till the constitution of the board, the Nalanda Mentor Group shall exercise the powers of the board.
- The university shall be a non-profit public private partnership which shall be autonomous and accountable to the governing board.
- The key objectives of the university include (a) imparting education and enabling research in ancient science, philosophy, language, and history; (b) promoting regional peace by helping East Asian leaders relate to their past history; (c) harmonising academic standards and accreditation norms in teaching and research acceptable to all member states; and (d) understanding Buddha’s teachings in the contemporary context.
- The university shall have the power to promote holistic and inclusive education; prescribe courses of study for degrees, diplomas and certificates; determine standards of admission and evaluation, set up a consortium of international partners to further its objectives; to generate resources through consultancy services, continuing educational programmes, collaborations and intellectual property rights; appoint faculty, to establish and maintain centres; and to borrow with approval of the governing board.
- The Academic Council shall be the academic body of the university with the power to maintain standards of learning and evaluation. The university shall also have a number of Schools of Studies such as Buddhist Studies, Philosophy and Comparative Religions, Historical Studies, and International Studies and Peace Studies.
- The Bill specifies the service conditions of the employees and dispute resolution mechanism. It also specifies the procedure of appeal and arbitration in disciplinary cases against students.