HEFA approves projects worth Rs 2,066 cr for 6 institutions

Speed Post News Network

New Delhi : For providing additional funds for research and related infrastructure, Higher Education Funding Agency (HEFA), has started its operations. The HEFA Board held its second meeting on November 29, 2017,  and approved projects worth Rs 2,066.73 crore for six institutions: IITs Bombay, Delhi, Madras, Kharagpur, Kanpur and NIT Suratkal.

The funds would be used to improve the research infrastructure in these institutions to further improve their standing at the global level, according to a PIB release. These institutions can avail of these funds as per the progress of the project and complete them. The funding under HEFA would be in addition to the grants being given to these institutions.

Expressing happiness over the approval of interest-free loans by HEFA Board, Union HRD Minister Prakash Javadekar said that today is a historic day for financing the needs and promotion of research and innovation beyond budgetary allocations.

The vision of PM Narendra Modi and the resolve of Finance Minister Arun Jaitley has made possible the operationalisation of HEFA to extend funds beyond budgetary allocations. This  funds is in addition to the grants that Government gives to these institutions. As per the scheme, HEFA would mobilise Rs 20,000 crore through market borrowing and would release the same to the Government institution as interest- free loans, according to the PIB release. HEFA was born out of the vision of PM Modi for providing additional finance for promoting research in the higher educational institutions.

The intent to create HEFA was made in the Budget speech of 2016-17 which stated,“We have decided to set up a Higher Education Financing Agency (HEFA) with an initial capital base of Rs 1,000 crores. The HEFA will be a not-for-profit organisation that will leverage funds from the market and supplement them with donations and CSR funds. These funds will be used to finance improvement in infrastructure in our top institutions and will be serviced through internal accruals.”  The Union Cabinet approved setting up HEFA on September 12, 2016.