In an interview published in The Telegraph, Prof. Sen talks quite extensively about the progress towards the creation of Nalanda University, and addresses some of the concerns raised in media reports (like this one in Tehelka).
Along the way, Prof. Sen narrates this great story:
It is perhaps a matter of interest that when my friend Bimal Matilal was interviewed for becoming the Spalding Professor of Eastern Religion and Ethics (a post that he held for many years with great distinction), he was asked by the vice-chancellor of Oxford whether he thought it was a limitation that he was not religious himself.
Bimal told me that the vice-chancellor very much agreed with him when he answered that this was neither here nor there, since he was supposed to educate people on the nature of — including beliefs and practices in — Eastern religions, rather than perform religious practices in his class.
Thanks to Ankur Kulkarni for the comment-alert.