CENTRE’S NOD FOR ~2,000 CR INTERESTFREE LOANS TO IITS

NEW DELHI: To encourage research in higher education institutions, the government has approved ~2,000 crore interestfree loans to six institutions including five IITS.

The central government’s Higher Education Financing Agency (HEFA) on Wednesday approved interest-free loan of over for research projects proposed by five Indian Institutes of Technology and National Institute of Technology, Suratkal.

“Today is a historic day for financing the needs and promotion of research and innovation beyond budgetary allocations. The Budget gives ample allocation and grants to Higher Education institutions but still there is a greater need,” HRD minister Prakash Javadekar said.

“While ~1,028.73 crore has been sanctioned for research and academic facilities, Rs 1,038 crore has been approved for supporting infrastructure,” a senior HRD ministry official said.

The Union Cabinet had approved HEFA in September last year as a special purpose vehicle with Canara Bank. It is jointly funded by the promoter/ bank and HRD ministry.

These funds are in addition to the grants that government gives to these institutions. As per the scheme, HEFA would mobilise ~20,000 crore through market borrowing and would release the same to the government institution as interest- free loans.

According to the funding mechanism, an institution can claim 10 times the sum it escrows in the first year. “Approved institutions can avail the sanctioned amount as per the progress of the project and complete them expeditiously. The funding under HEFA would be in addition to the grants already given to the institutions,” the official said.

THESE FUNDS ARE IN ADDITION TO THE GRANTS THAT CENTRAL GOVERNMENT GIVES TO THESE INSTITUTIONS