The Punjab Vidhan Sabha passed three Bills pertaining to digital universities in its recently concluded monsoon session. While the Aam Aadmi Party (AAP) government claims that these new universities will pave the way for a digital revolution in education in the state, the opposition has claimed that these Bills flout guidelines and regulations of the University Grants Commission (UGC) for online education and the state government will have no oversight on them.The Bills now require the Governor’s assent to become law. Once operational, the universities will need to meet UGC recognition and regulatory standards before awarding degrees. We explain.On Monday (August 10), the last day of the monsoon session, the Punjab Vidhan Sabha passed three separate Bills: Cloud University, Hoshiarpur Bill, 2026; MS Digital University, Patiala Bill, 2026; and Physicswallah Digital University, Patiala Bill, 2026. These Bills legally enable the establishment of three private digital open universities in the state.The Bills will implement the Punjab Private Digital Open Universities Policy, 2026, which was notified in January 2026. The policy aims to expand access to higher education through fully online and digital modes, attract reputed private and edtech players, and allow students to complete entire undergraduate, postgraduate, and professional programmes from home without attending physical classes.Punjab is positioning itself as one of the first states in India to create a comprehensive framework for such private digital universities. These are self-financed private universities that deliver education entirely through digital, online, distance, or open modes.Also in Explained | ‘Digital open universities’ launched in Punjab for private players: How will they operate — and will the govt fund them?Key features include online classes, digital assessments, virtual laboratories, and technology-enabled tools. These universities will also integrate Learning Management Systems, digital content studios, cloud hosting, artificial intelligence (AI)-proctored exams, AI-enabled learning pathways, live sessions, mentoring, and 24×7 student support.Physical campuses exist only as administrative headquarters and no regular classroom teaching is expected. Support for micro-credentials, and credit transfer under the National Credit Framework and Academic Bank of Credits is also envisaged. These are also expected to provide robust digital learner support systems including call centres, helpdesks, counselling services and a Digital Ombudsman and to promote research and development in digital pedagogy, virtual learning environments, artificial intelligence, accessibility, assessment integrity, and education technology.The three universitiesStory continues below this adCloud University will be located at Bohan on Hoshiarpur-Chandigarh Road in Hoshiarpur district. It is promoted by the Rayat and Bahra Group, who are already running three private universities in the region.The MS Digital University will be located at Fatehpur village, Patiala district. It is associated with Balraj Singla Education Society, which also runs educational institutes around Patiala.The Physicswallah Digital University will come up in Nandpur Kesho village, Patiala district. It is operated by NextSeed Foundation linked to the edtech company Physics Wallah.The courses and subjects that will be offered are undergraduate, postgraduate, and professional programmes across disciplines such as engineering, medical and paramedical sciences, life sciences, humanities, liberal arts, management, social sciences, and more — all delivered online.Questions of funding and quality controlStory continues below this adIn terms of funding, these universities are completely self-financed. The Punjab government will provide no grants or financial assistance. Sponsors must maintain a minimum corpus fund of Rs 20 crore to be used only for university development.Sponsors need at least five years of credible experience in online education. Minimum land requirement is of around 2.5 to 3 acres for the administrative headquarters and strong digital infrastructure. Punjab Education Minister Harjot Singh Bains moved the three Bills in the Vidhan Sabha. Photo: Kamleshwar SinghAt least 15% of seats will be reserved for Punjab-domiciled students. AI-generated content must be clearly identified, critically reviewed, and formally approved by academic bodies.An Ombudsman for student grievances on admissions, fees, exams, certificates, and discrimination, etc. has to be appointed by the universities. The Governor of Punjab will act as Visitor with inspection powers, while the Chancellor is nominated by the sponsoring body. Penalties up to Rs 25 lakh can be imposed for violations of UGC or other norms.Political reactionStory continues below this adThe state Education Minister Harjot Singh Bains moved the Bills in the Vidhan Sabha. The three Bills faced strong opposition, mainly from Congress MLAs, during their passage in the House. The Congress MLAs protested by entering the well of the House, raising slogans, and accusing the AAP government of “selling education to private players”, neglecting government universities, and rushing the legislation without proper discussion. The Deputy Speaker continued the proceedings and the Bills were passed by majority despite the chaos.Opposition leaders accused the AAP government of prioritising private entities and companies over strengthening public institutions. They claimed the move commercialises higher education by handing it over to private entities that will operate on a self-financed, fee-based model. The Congress has also objected to the lack of government oversight on these universities and that the interests of the students of the state have been compromised.NewsletterFollow our daily newsletter so you never miss anything important. On Wednesday, we answer readers' questions.SubscribeCongress MLA Avtar “Henry” Junior and Independent MLA Rana Inder Pratap Singh questioned how courses that require mandatory laboratory or practical facilities such engineering, medical, or science programmes would be properly conducted in a fully digital or online format. Rana Inder Pratap said that as per the UGC Act, no online classes can be held for engineering, medical, paramedical courses, and PhD. The Digital Universities Act, however, provides for the conduct of these courses in online mode, he said.Education Minister Bains said that the Congress MLAs have been misled by the introductory paragraph of the Bills and have not gone through the operative clause. According to Bains, Clause 4(b) of the Objects of the Bill clearly states: “to ensure adherence to the UGC (Open and Distance Learning Programmes and Online Programmes) Regulations, 2020, the National Credit Framework, the Credit Framework for Online Learning, and the Academic Bank of Credits”.Story continues below this adBains said even in the engineering stream, there are certain courses which can be taught in online mode.