Speed Post News Network
New Delhi: The Union Cabinet chaired by PM Narendra Modi has approved the creation of the Higher Education Financing Agency (HEFA) to give a major push to creation of high quality infrastructure in premier educational institutions.
The HEFA would be jointly promoted by the identified Promoter and the Ministry of Human Resource Development (MHRD) with an authorised capital of Rs 2,000 crore. The government equity would be Rs.1,000 crore. The HEFA would be formed as a SPV within a PSU Bank/ Government-owned-NBFC (Promoter). It would leverage the equity to increase to Rs 20,000 crore for funding projects for infrastructure and development of world class Labs in IITs/IIMs/NITs and such other institutions, according to a PIB release.
The HEFA would also mobilise CSR funds from PSUs/Corporates, which would in turn be released for promoting research and innovation in these institutions on grant basis. The HEFA would finance the civil and lab infrastructure projects through a 10-year loan. All the Centrally Funded Higher Educational Institutions would be eligible for joining as members of the HEFA.