The main goal of the project is to study the scope of establishing private clouds at universities. With these clouds, students and researchers can efficiently use the already existing resources of university computer networks, in solving computationally intensive scientific, mathematical, and academic problems. Traditionally such computationally intensive problems were targeted by batch-oriented models of the Grid computing domain, where as current project tries to achieve this with the more interactive and service oriented models of cloud computing that fits a larger class of applications. The established interoperable private clouds also provide better platforms for collaboration among interesting groups of universities and in testing internal pilots, innovations and social networks. The project mainly targets the development of a framework, including models and methods for establishment, proper selection, state management (managing running state and data) and interoperability of the private clouds. Once such clouds are feasible, the networks can also be leased to commercial enterprises or governmental institutions for such diverse applications as drug discovery, seismic analysis, and back-office data processing in support of e-commerce and Web services.