The move is likely to allow 100 per cent foreign direct investment in higher education.
"The Bill will protect the interest of the student community from sub-standard foreign educational institutions and 'fly by night' operators," Priya Ranjan Dasmunsi, Minister for Information and Broadcasting, said. The Bill will now go to Parliament.
The Cabinet also gave its nod for raising the authorised share capital of the Indian Renewable Energy Development Agency Ltd from Rs 400 crore (Rs 4 billion) to Rs 1,000 crore (Rs 10 billion).
The Communal Violence (Prevention, Control and Rehabilitation of Victims) Bill, 2005, was also approved. The Bill envisages speedy investigation and dispensation of justice, prevention of communal violence and offences. The Cabinet also gave approval for a Bill to amend the Motor Vehicles Act, 1998.