What is the purpose Higher Education Financing Agency? How it plans to mobilise funds?
The Union Cabinet has approved the creation of the Higher Education Financing Agency (HEFA) to give a major push for creation of high quality infrastructure in premier educational institutions and to fund projects to the tune of Rs. 100,000 crore by 2022.
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) for funding projects for infrastructure and development of world class Labs in IITs/IIMs/NITs and such other institutions
As on 11th December, 2019, projects worth Rs. 37,001.21 crore have been approved.
A loan amount of Rs. 25,564.52 crore have been sanctioned and Rs. 5,537.06 crore have actually been disbursed.
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. 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.
The number of educational institutions that have availed funding through HEFA stands at 75.
