Revitalising Infrastructure and Systems in Higher Education (RISE) by 2022 (Download PDF)

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CCEA approved expanding scope of Higher Education Financing Agency (HEFA) by tasking it to mobilise Rs. 1,00,000 cr. for Revitalizing Infrastructure & Systems in Education (RISE) by 2022. Proposal called for enhancing capital base of HEFA to Rs. 10,000 cr. From present 2000 cr.

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Image of Union and Budget 2018 - 19

Image of Union and Budget 2018 - 19

Details of Funding Procedures

  • Funding would be used expand facility to all institutions, especially to ones that were set up after 2014, central universities that have very little internal resources & school education/health education infrastructure like AIIMS, Kendriya Vidyalayas.

5 Windows for Financing under HEFA & Modalities of Repaying Principal

  • CCEA has approved 5 windows for financing under HEFA & modalities of repaying Principal portion of fund:

Technical Institutions more than 10 years old: Institutions will have to repay whole Principal Portion from internally generated budgetary resources.

Technical Institutions started b/w 2008 & 2014: Institutions will be required to repay 25 % of principal portion from internal resources & receive grant for balance of Principal portion.

Central Universities started prior to 2014: They will have to repay 10 % of principal portion from internal resources & receive grant for balance of Principal portion.

Newly established Institutions started after 2014: For funding construction of permanent campuses, grant would be provided to these institutions for complete servicing of loan including Principal & interest.

Other educational institutions & grant-in-aid institutions of Ministry of Health: All newly set up AIIMS & other health institutions, Kendriya Vidyalayas/Navodaya Vidyalayas would be funded & Department/Ministry concerned will give commitment for complete servicing of principal & interest by ensuring adequate grants to institution.

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Image of Educational Institutions List

Image of educational institutions list

  • CCEA permitted HEFA to mobilise Rs. 1,00,000 cr. over next 4 years till 2022 to meet infrastructure needs of these institutions.

  • Cabinet approved increasing authorised share capital of HEFA to Rs. 10,000 cr.

  • It approved infusing additional Govt. equity of Rs. 5,000 cr. (in addition to Rs. 1,000 cr. already provided) in HEFA.

  • It has approved that modalities for raising money from market thru Govt. guaranteed bonds & commercial borrowings would be decided in consultation w/Department of Economic Affairs so that funds are mobilised at least cost.

Significance of the Additional Funding

  • Move would enable addressing needs of all educational institutions w/differing financial capacity in inclusive manner.

  • It would enable HEFA to leverage additional resources from market to supplement equity, to be deployed to fund requirements of institutions.

  • Govt. guarantee would eliminate risk factor in bonds issue & attract investment into this important national activity.

HEFA – Higher Education Financing Agency

  • HEFA was set up on 31st May, 2018 by Central Govt. as non-profit, Non-Banking Financing Company (NBFC) for mobilising extra-budgetary resources for building crucial infrastructure in higher educational institutions under central govt.

  • Entire principle portion is repaid by institution over 10 years & interest portion is serviced by Govt. by providing additional grants to institution.

  • Funding proposals worth Rs. 2,016 cr. are approved by HEFA.

- Published/Last Modified on: September 3, 2018

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