Commerce and Industry Minister Nirmala Sitharaman said talks are on with Human Resource Development Ministry and advice has been sought from Prime Minister's Office on the issue.
"I want this issue to get a fair solution, student should not be put to difficulties, but this is an inherited problem... We are working to have a deemed university status for them," she told PTI in an interview.
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Keen to resolve the issue, Sitharaman had conducted about a dozen consultation meetings with the concerned ministries, departments, students and their parents.
Around 200 students of FDDI in Noida went on a rampage last month, ransacking the premises and damaging two buses, in protest against alleged failure of the institute to give them degrees, instead of diplomas.
FDDI had signed an MoU with Mewar University in 2012 for awarding degrees. But last year, UGC had termed the MoU as illegal, triggering protests by students.
From 2012 to 2014, around 3,609 students had taken admission in the institute.
Sitharaman had said the matter is an "issue in legacy. We inherited something which was not of our making."
The issue cropped up after the University Grants Commission (UGC) declared that Mewar University cannot award degrees to FDDI students.
The Indira Gandhi National Open University (IGNOU) used to grant degrees for all courses at the institute, but it discontinued the same in 2012 academic session, even as 1,250 students were enrolled for various graduate and post-graduate programmes.
FDDI roped in Mewar University of Rajasthan to offer degree programmes from academic session 2012. However, UGC in September 2014, questioned the MoU between FDDI and Mewar University for grant of degree to FDDI students registered for 2012, 2013 and 2014 in light of the AICTEs non-recognition of these degrees.
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