Higher Education Financing Agency Establishment Approved [ Current Affairs - Education ]
The Higher Education Financing Agency (HEFA) establishment is approved by the Union Cabinet to promote creation of high quality infrastructure in premier educational institutions. The Union Ministry of Human Resource Development (MHRD) and identified Promoter are jointly supporting the HEFA.
- The HEFA will be Special Purpose Vehicle (SPV) within a PSU Bank/ Government-owned-NBFC (Promoter).
- HEFA will have an authorized capital of 2,000 crore rupees and the government equity would be 1,000 crore rupees.
- It would pull the equity up to Rs. 20,000 crore for funding projects for infrastructure and development of world class Labs in IITs/IIMs/NITs and such other institutions.
- CSR funds will also operate by the HEFA from Corporates/PSUs which will promote research and innovation in these institutions on the basis of grant.
- The HEFA will provide lone for the civil and lab infrastructure projects in educational institutions with time limit of 10 year.
- The ‘internal accruals’ will pay the principal portion of the loan which institutions earned by the fee receipts, research earnings etc.
- Then the interest portion loan will be paid of the Central Government by the regular Plan assistance.
- All the Centrally Funded Higher Educational Institutions can join HEFA as members and they all must have to agree to escrow a specific amount from their internal accruals for a period of 10 years to the HEFA.
- The escrow will secure the flows future of HEFA for mobilizing the funds from the market.
- And every member schools are eligible for a credit limit based on the amount agreed to be escrowed from the inner accruals as decided by HEFA.
- Published on: September 13, 2016