First, it has to be recognised that the quality of education cannot be raised through licensing. We learnt this the hard way in the case of the economy, which, till 1991, withered under the stranglehold of 'industrial licensing'. We must now do the same for education: remove bureaucratic entry-barriers for new colleges and universities. Some of them will be of poor quality, but that is a price we have to pay. The US has many sub-par universities. That does not detract from America's reputation as the world leader in higher education, because it is home to also the world's greatest universities.
Moreover, we forget that the market, with all its faults, plays a role. Most poorly performing colleges, if information about their performance is made easily available, will be competed out of existence. Hence, one activity of a reformed UGC should be to rate universities. Successful nations spend a lot to evaluate and rate their corporations and banks; this is vital for investment. The UGC should, likewise, produce and publicise ratings of and information about all our institutes of higher education.