New Delhi: The aid, to be provided over 12 years, was approved by the Cabinet Committee on Economic Affairs, an official release said.
The ruins of Nalanda University in Bihar's Rajgir district. Pic: AFP
The revival of the university will benefit 2,450 Indian and foreign students by the end of 2021-22, the release added.
The government funding would enable it to establish itself as an international institution of excellence.
Nalanda University was the first great university in recorded history and one of the world's first residential university to offer dormitories for students.