New Delhi: The Cabinet on Thursday gave its approval to a policy framework for establishing a university in India to provide affordable and quality education to children of Non-Resident Indians (NRI) and Persons of Indian Origin (PIO).

The university will come up in a Special Economic Zone (SEZ) as a Deemed University De-Novo under Section 3 of the University Grants Commission (UGC) Act as an Institution of Excellence, Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters after the cabinet meeting chaired by Prime Minister Manmohan Singh.

The University will be set up by Overseas Indian Trusts or societies with credible standing and experience in the field of education under the overall supervision of the Ministry of Overseas Indian Affairs.

This follow-up action comes after the Prime Minister's promise to the Indian Diaspora and to meet the aspiration of the Overseas Indians for higher education opportunities in India.

It will also help in developing the comprehensive bilateral links with India through the active association of the Diaspora, said an official note.

There are around 25 million people of Indian origin living in nearly 130 countries.

In developed countries like the US and Britain, higher education is expensive and increasingly Overseas Indians look to their country of origin for higher studies for their children.

On the other hand, students from the developing countries, where educational facilities are either not available or are limited, also look up to India for their higher educational needs.

Prime Minister Manmohan Singh had initially announced setting up of an exclusive university for the PIOs during his meeting with the Indian community in Malaysia in December 2005.

He reiterated the plan for the university at the 4th Pravasi Bharatiya Divas (PBD), the annual conclave of the Indian diaspora, held at Hyderabad in 2006.

At the PBD 2007 in New Delhi, he once again announced that the proposal for establishing a university for PIO is under active consideration of the government. (IANS)