By Shailaja Neelakantan

New Delhi

A $10-million project to increase cooperation between colleges in India and the United States, which was agreed upon last November, is stuck in a wrestling match between two organizations that are vying to be put in charge of the plan.

The United States would like the Obama-Singh 21st Century Knowledge Initiative—which is to be financed equally by India and the United States—to be run by the United States-India Educational Foundation, which administers the Fulbright-Nehru program in India, among other things. India's government agency that regulates universities wants complete or at least equal control of the project, given that it is technically the organization through which India's $5-million share of the cost will be disbursed.

The project is named after Manmohan Singh, prime minister of India, and Barack Obama, president of the United States. Its goals include strengthening ties between higher-education institutions in both countries and promoting exchanges between junior faculty members at American and Indian colleges, with a particular emphasis on community colleges.

The dispute over the program was confirmed by a source familiar with the American side of the situation, and another familiar with the Indian side. Both spoke on the condition of anonymity because of the sensitivities raised by the disagreement.

Amit Khare, a senior administrator at the Indian ministry in charge of higher education, denied there was a tussle going on about who will lead the program.

"The United States-India Educational Foundation and the University Grants Commission [the Indian agency that regulates universities]—they will fund it," Mr. Khare said. "A committee with both U.S. and Indian representatives will run the program."

A U.S. Embassy spokesperson also denied that any power plays were at work. In a written statement, the spokesperson said that embassy officials and India's ministry in charge of higher education were working closely together to determine how the project would be carried out.

"In the development of programs, the two governments are committed to including institutions and individuals in both countries that represent geographic diversity, diverse student populations, and those who seek to serve their local communities," the statement says. "The two governments are equal partners in this initiative and will implement the initiative jointly."

The foundation, which administers the Fulbright-Jawaharlal Nehru Scholarships and Grants program in India, has been a joint U.S.-India organization, financed equally by both countries, since 2008.

The U.S. government believes the foundation, because it is an equal-partnership organization, is the most competent to run the Knowledge Initiative because it has the organization, the infrastructure, the experience, and the expertise to do so, said a source familiar with the American position in the disagreement.

At the regulating agency and within the education ministry, though, there is a perception that the foundation is still an American entity and may not be entirely neutral, the source said.

The only issue that has tentatively been decided on so far is how the $10-million will be allocated. The provisional agreement, that source said, is that 55 percent of the money will go toward building ties between institutions and 35 percent will be allocated for junior-faculty-development exchanges between the two countries.

Kapil Sibal, India's minister in charge of higher education, said recently that he would try to set up the knowledge project, as well as an India-U.S. education council, before Mr. Obama is scheduled to visit India this November. Mr. Sibal first proposed the council to Arne Duncan, the U.S. secretary of education, during Mr. Sibal's visit to the United States last October.

During another visit to the United States this month, Mr. Sibal met with the secretary of state, Hillary Clinton, and reiterated the need for both countries to establish such a council, to be made up of academics, entrepreneurs, and government representatives.

The council, he said, will give further impetus to the sustained efforts of both sides to increase education cooperation.

However, the source familiar with the American side of the situation said the United States was not keen on setting up yet another administrative body because it believes the United States-India Educational Foundation exists to enable joint programs in higher education.

As for the knowledge project, the U.S. Embassy statement said, "we hope to announce programs within the next few months."