Union Cabinet approves establishment of Higher Education Financing Agency

Posted on:13 Sep 2016 18:09:06

Union Cabinet approves establishment of Higher Education Financing Agency
13 September 2016 Current Affairs: The Union Cabinet has approved the creation of the Higher Education Financing Agency (HEFA) on 12 September 2016 .

The HEFA will be established to give a major push for creation of high quality infrastructure in premier educational institutions.

Highlights of the HEFA : The HEFA will be jointly promoted by the identified Promoter and the Ministry of Human Resource Development (MHRD) with an authorised capital of 2000 crore rupees. The Government equity will be 1000 crore rupees.The HEFA will be formed as a SPV within a PSU Bank/ Government-owned-NBFC.  It will leverage the equity to rise up to 20000 crore rupees for funding projects for infrastructure and development of world class Labs in IITs/IIMs/NITs and such other institutions.

It will also mobilise CSR funds from PSUs/Corporates, which will in turn be released for promoting research and innovation in these institutions on grant basis.The HEFA will finance the civil and lab infrastructure projects through a 10-year loan.

All the Centrally Funded Higher Educational Institutions will be eligible for joining as members of the HEFA.For joining as members, the Institution should agree to escrow a specific amount from their internal accruals to HEFA for a period of 10 years. This secured future flows will be securitised by the HEFA for mobilising the funds from the market.

Each member institution will be eligible for a credit limit as decided by HEFA based on the amount agreed to be escrowed from the internal accruals.


Subscribe to Current Affairs

Enter your email to get daily current affairs

Current Affairs July 2017

22 JULY
NEWS
21 JULY
NEWS
20 JULY
NEWS
19 JULY
NEWS

Current Affairs June 2017

30 JUNE
NEWS
29 JUNE
NEWS
28 JUNE
NEWS
27 JUNE
NEWS

Current Affairs May 2017

31 MAY
NEWS
30 MAY
NEWS
29 MAY
NEWS
27 MAY
NEWS