News
Capital Base Of HEFA increased to Rs 10k Cr,Higher Education Sector to get more funds.
05
Jul
Jul
A proposal has been approved by the Union Cabinet on Wednesday to widen the capacity of the HEFA by increasing its capital base from the present Rs 1,100 crore to Rs 10,000 crore, also it is the responsibility of HEFA to Mobilise funds of Rs 1.00,000 crore by 2022 for Revitalising Infrastructure and systems in higher education (RISE).
In a meeting chaired by the Prime Minister Narendra Modi, Cabinet Committee on economic affairs approved a proposal to increase the scope of HEFA to all institutions particularly those set up after 2014, central universities having few internal resources and will also include schools and health institutions like the AIIMS and the Kendriya Vidyalayas.
For mobilising the extra-budgetary resources for establishing vital infrastructure in Government higher education institutions, The HEFA was set up on 31st May 2017 as a non-profit and non-banking financing company.
Prakash Javadekar, Minister Human Resource Development tweeted and said that this allocation towards research and academic infrastructure will enable India to Compete in the world stage. He also added that apart from the II T ’s, National Institute of technology, and the Indian Institute of Science Education and research which are already funded by the HEFA, for the first time HEFA will also fund the Kendriya Vidyalayas and the Jawahar Navodaya Vidyalayas.
According to some people who have knowledge about this plan, this plan will consist of 5 financing windows, for example, The whole principal portion generated from internal budgetary resources will have to be repaid by the Technical institutions which are more than 10 years old.
25% will have to be repaid by technical institutions that started between 2008 and 2014 and in return will receive a grant for the balance principal portion.
Grant would be given for the complete servicing of loan for funding the construction of permanent campuses to the institutions that have been newly established (after 2014).
