HEFA (The Higher Education Funding Agency) approved projects for Rs 2,066.73 crore to six higher education institutions, IITs of Bombay, Delhi, Madras, Kharagpur, Kanpur and NIT Suratkal
NEED BEHIND HUGE FUNDS
For providing additional funds for research and related infrastructure, HEFA has started its operations and in its second meeting on Wednesday approved these projects’ funding for the six institutions. These funds would be used to improve the research infrastructure in these institutions to further improve their standing at the global level.
Of the Rs 2,06673 crore, Rs 1,028.73 crore has been approved for 16 Projects for research/ academic facilities and Rs 1,038.00 crore for 11 other supporting infrastructure. These institutions can avail of these funds as per the progress of the project and complete them. The funding under HEFA would be in addition to the grants being given to these institutions.
HRD MINISTER’S STATEMENT ON HEFA APPROVAL
On the approval of interest-free loans by HEFA Board, HRD Minister Prakash Javadekar said: “Today is a historic day for financing the needs and promotion of research and innovation beyond budgetary allocations. The Union Budget gives ample allocation and grants to Higher Education institutions but still there is a greater need.” These funds are in addition to the grants that Government gives to these institutions. As per the scheme, HEFA would mobilise Rs 20,000 crore through market borrowing and would release the same to the government institution as interest- free loans.
The intent to create HEFA was made in the Budget speech of 2016-17 which stated that, “We have decided to set up a Higher Education Financing Agency (HEFA) with an initial capital base of Rs 1,000 crores. The HEFA will be a not-for-profit organisation that will leverage funds from the market and supplement them with donations and CSR funds.
