VBSA Bill 2025: Single Regulator to Replace UGC, AICTE, and NCTE

In a key decision taken by the Indian Government on the Education sector, the Viksit Bharat Shiksha Adhishthan (VBSA) Bill, 2025 was introduced in the Lok Sabha in the winter session. 

The existing fragmented regulatory system will be replaced by VBSA - combining the functions of University Grants Commission (UGC), the All India Council for Technical Education (AICTE) and the National Council for Teacher Education (NCTE).

Among the other key changes proposed in the Bill, VBSA will not have to finance the institutions. Instead, it will focus only on academic and professional standards. The funding of Central Institutions will continue to be done by Ministry of Education.

But the VBSA will have powers related to the imposition of penalties for violations, inclusion of representatives from states to prevent over-centralization in the councils and empowering bodies to create policies to prevent the commercialization of higher education. The IITs and IIMs, which were earlier not under the preview of UGC, will now come under the purview of the proposed regulator.

The Bill has been referred to a joint parliamentary committee for evaluation, with their report expected by the first half of the 2026 budget session of Parliament.

Our view: 

1. The VBSA Bill, 2025, represents the most significant overhaul of India’s higher education regulatory framework since the establishment of the University Grants Commission (UGC) in 1956. 
2. By removing funding powers, the new regulator can focus strictly on academic standards, accreditation, and transparency without financial considerations clouding its judgment. This was one of the most crucial steps taken. 
3. There will be more focus on quality, and since the Ministry will now disburse funds based on the regulator's performance feedback, institutions are incentivized to demonstrate actual excellence rather than just maintaining a checklist of facilities. This will be applicable from now onwards to even Institutes from the elite IITs and IIMs. 
4. Bringing all regulators under one umbrella will also lead to reduced bureaucracy and faster innovation. 
5. Finally, the graded fines imposed along with mandatory public digital disclosures mandated will help institutes perform effectively. 

Link https://www.business-standard.com/education/news/vbsa-to-replace-ugc-aicte-ncte-but-will-have-no-funding-powers-pradhan-125121601284_1.html