To start a new private university under the Tamil Nadu Private Universities Act, 2019, the sponsoring organisation needed at least 100 acres as one connected piece of land. and a ₹50 crore permanent endowment fund. Contiguous means the land must form one connected site.
On 8 September 2026, the Tamil Nadu Assembly passed a bill to amend the Tamil Nadu Private Universities Act, 2019. The existing minimum is 100 acres of contiguous land. Under the bill, the minimum would depend on where the new university is located.
Think of it this way: An organisation may be able to build classrooms and hire teachers, but it cannot easily find one connected 100-acre parcel near Chennai. That is the land problem the current proposal is trying to address.. That is why Tamil Nadu has proposed a major change to the land required for setting up a new private university.
| Location | Proposed minimum land |
|---|---|
| Within Greater Chennai Corporation limits | 12 acres |
| Other municipal corporations and municipal councils | 18 acres |
| Other areas of Tamil Nadu | 25 acres |
The bill also proposes reducing the permanent endowment fund required to establish a private university from ₹50 crore to ₹25 crore.
Permanent Endowment Fund
A permanent endowment fund is money the organisation starting a private university must set aside as a financial reserve.
Under Tamil Nadu’s existing law, it must put at least ₹50 crore into this fund. The university can invest the money, but it cannot normally withdraw the required ₹50 crore for everyday expenses. Income earned from the fund can go towards the university’s development. The reserve can also help meet expenses if the university is being closed.
Why is Tamil Nadu proposing this change?
On October 2025 the then government passed another bill. It proposed smaller land requirements and would have allowed existing private or government-aided colleges to become private universities, called brownfield universities.
By February 2026 that 2025 bill was withdrawn after objections. Teachers and parties were particularly concerned that converting aided colleges could affect affordable education, reservation protections and staff jobs.
This time on September 2026 the present government brought a different bill. It lowers the land requirement for new campuses, but does not bring back the provision allowing existing colleges to convert into brownfield universities.
The government says that finding a single 100-acre site near Chennai has become difficult and this rule makes it difficult to establish new universities close to cities.
Higher Education Minister P. Viswanathan argues that smaller land and fund requirements could attract more high-quality institutions. He has also said the government wants new universities, rather than the conversion of existing colleges into private universities.
Reactions to the proposal
Teachers’ groups oppose it. They worry that more private universities could mean higher fees and less affordable education, especially for rural, first-generation and lower-income students. They also want the government to strengthen existing public universities.
Some legislators oppose it. PMK MLA A. Ganeshkumar questioned whether a university on a much smaller plot would have enough facilities. CPI MLA K. Marimuthu raised concerns about commercialisation and social justice
Has the new rule taken effect?
Not yet, based on the reports available as of 23 September 2026. The Assembly has passed the bill, and Minister Viswanathan said on 20 September that it had been sent to the President for assent. Until approval and commencement are confirmed, the 12-, 18- and 25-acre figures remain proposed requirements.