Higher Education Financing Agency (HEFA) is aimed to give major push for 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 authorized capital of Rs. 2,000 crores. The Government equity would be Rs. 1,000 crores.
The HEFA would be formed as a SPV within a PSU Bank/ Government-owned-NBFC (Promoter). It would leverage the equity to raise up to Rs. 20,000 crores for funding projects for infrastructure and development of world class Labs in IITs/IIMs/NITs and such other institutions.
The HEFA would also mobilize CSR funds from PSUs/Corporates, which would in turn be released for promoting research and innovation in these institutions on grant basis.
Working of HEFA
All the Centrally Funded Higher Educational Institutions would be eligible for joining as members of the HEFA. For joining as members, the Institution should agree to escrow a specific amount from their internal accruals to HEFA for a period of 10 years. This secured future flows would be securitised by the HEFA for mobilising the funds from the market. Each member institution would be eligible for a credit limit as decided by HEFA based on the amount agreed to be escrowed from the internal accruals