Cabinet approves funds to boost educational infra
NEWDELHI: Landmark decision of Union Cabinet today approves HEFA to mobilise ₹1,00,000 cr for research and academic infra for Higher Education institutions by 2022. PRAKASH JAVADEKAR, HRD minister
The Union Cabinet on Wednesday approved a proposal for expanding the scope of Higher Education Financing Agency (HEFA) by expanding its capital base to ₹10,000 crore. HEFA has also been tasked to mobilise ₹1,00,000 crore for Revitalising Infrastructure and Systems in Higher Education (RISE) by 2022.
The cabinet committee of economic affairs (CCEA), chaired by PM Narendra Modi, approved the proposal to expand this facility to all institutions, especially those set up after 2014, central universities with very little internal resources, and school education or health education infrastructure such as AIIMS and Kendriya Vidyalayas (KVs).
HEFA was set up on May 31, 2017, by the Centre as a NonProfit, Non-Banking Financing Company (NBFC) to mobilise extra-budgetary resources for building crucial infrastructure in the higher educational institutions under the government. So far, institutions were getting grant-in aid and under this system funds will be allocated on project basis. “Institutions will have to send proposals on where they want to spend the money and for this they would be given interest-free loan,” said a person familiar with the developments.
HRD minister Prakash Javadekar termed it a “landmark decision”, saying it will make India globally competent. “Landmark decision of Union Cabinet today (Wednesday) approves HEFA (Higher Education Funding Agency) to mobilise ₹1,00,000 crore for research and academic infrastructure for Higher Education institutions by 2022. This substantial allocation for research and academic infrastructure will help India compete in the world stage,” he tweeted.
For the first time, he said, the Jawahar Navodaya Vidyalaya (NV) and Kendriya Vidyalaya (KV) will also be funded by HEFA, in addition to IITs, NITs, IISERs, and other central universities and medical colleges already under its purview.
Sources said there would be five financing windows. For instance, technical institutions more than 10 years old will have to repay the whole principal portion from the internally generated budgetary resources. Technical institutions that started between 2008 and 2014 will have to repay 25% of the principal portion from internal resources, and receive grant for the balance of the principal portion.
Similarly, central universities started prior to 2014 will have to repay 10% of the principal portion from internal resources, and receive grant for the balance of the principal portion. In the case of newly established institutions (started after 2014), for funding construction of permanent campuses: grant would be provided for complete servicing of loan.
The approval of the cabinet is to enhance the authorised share capital of HEFA to ₹10,000 crore and provision of additional government equity of ₹5,000 crore in addition to the existing approved government equity.
The modalities for raising money from the market through government guaranteed bonds and commercial borrowings would be decided in consultation with the department of economic affairs so that the funds are mobilised at the least cost.