Infrastructure of educational institutions has always been a matter of concern for the governments. Therefore, to create high quality infrastructure in premier educational institutions, the Union Cabinet on Monday approved the establishment of a Higher Education Financing Agency (HEFA).
To promote HEFA, which will be formed as a SPV within a PSU Bank or Government-owned-NBFC, Ministry of Human Resource Management (MHRD) will work jointly with identified promoter for which Rs 2000 crore will be authorized out of which government equity would be Rs 1,000 crore.
Further, HEFA would influence to arrange Rs 20,000 crore for funding projects for infrastructure and development of world class Labs in IITs/IIMs/NITs and such other institutions.
The HEFA would also mobilise CSR funds from PSUs or corporates, which would in turn be released for promoting research and innovation in these institutions on grant basis.
If not so, the HEFA would finance the civil and lab infrastructure projects through a 10-year loan.
As a result, all the centrally funded higher educational institutions would be eligible for joining as members of the HEFA.