The Cabinet has given a green signal to establish Indian Institute of Petroleum and Energy (IIPE) at Visakhapatnam.
The Andhra Pradesh government has allocated 200 acres of land for setting up of the Institute worth Rs 655.46 crore as capital expenditure with contribution of Rs 200 crore towards its Endowment Fund.
The Institute will have the governance structure as well as legal mandate to grant degrees in a manner similar to that enjoyed by IITs.
The decision, which was taken on Thursday, was made under the 13 Schedule of Andhra Pradesh Reorganization Act, 2014, Bureaucracy Today has learnt.
A separate Act will also impart the required status to the Institute to become a "Centre of Excellence" in petroleum and energy studies.