NEW AGENCY TO HELP IITS, IIMS RAISE FUNDS FOR INFRA WORK

More funds would be available with the top educational institutions such as IITs, IIMs, NITs and central universities for taking up infrastructure improvement work such as construction of new buildings, laboratories, hostels.

The Higher Education Financing Agency (HEFA) set up for mobilising market funds for infrastructure in the higher educational institutions has become functional. The credit policy framework for this was issued by the HEFA after consulting the human resource development (HRD) ministry on Wednesday.

The government had set up the agency to provide the much needed funds to boost research oriented infrastructure for top institutions. They will now be able to raise funds directly from the financing agency that has become operational.

“If an institute wants to apply for ₹100 crore loan, it has to ensure it is able to escrow at least ₹10 crore per year from its own resources,” said a senior HRD official. A number of IITs and IIMs have in the past been demanding more funds for research-oriented work, infrastructure improvement and overall upgradation. Despite hike in the budgetary allocations, these institutions would need more funds required to take them on trip of global excellence.

The credit limit would normally be 10 times the amount committed to be escrowed by the institution every year from its own internal resources. The HRD ministry has urged all the institutes to come up with proposals for financing from HEFA. The government had signed an agreement with Canara Bank to set up a non-banking financial company. HEFA will act as an alternative source of funding to institutes to meet their requirements as government funds prove inadequate. According to the scheme, the HEFA loans would be over and above the budgetary support.

“The aim is to push the institutions to become financially selfsustaining and not depend on the government for everything,” said a senior HRD official.