The University Grants Commission (UGC), established in November 1956 as a statutory body of the Government of India through an Act of Parliament, has the unique distinction of being the only grant giving agency in the country which has been vested with two responsibilities that of providing funds and that of coordination, determination and maintenance of standards in institutions of higher education. To monitor standards of the higher educational institutions the UGC has established the National Assessment and Accreditation Council (NAAC) as an autonomous body, under section 12(ccc) of its Act in September 1994.

NAAC has been instilling a momentum of quality consciousness amongst Higher Educational Institutions, aiming for continuous improvement. However, lasting improvements in standards cannot come about only by accreditation from outside, once in five years. An internal mechanism for sustenance, assurance and enhancement of the quality culture of education imparted by them, therefore, become essential. Many HEIs already have established the Internal Quality Assurance Cell (IQAC) as a post accreditation quality sustenance activity. Recognizing the importance of such institutional internal quality system the UGC has taken a policy decision to direct all colleges to establish IQAC for which it has decided to provide seed financial assistance