New Delhi
Canara Bank has confirmed that it has sign amemorandum with HRD Ministry in order to operationalise the Higher EducationFinancing Agency (HEFA).
Prime Minister Narendra Modi approved the creationof the HEFA to give a major push of high quality infrastructure in premiereducational institutions in 2016.
HEFA would be jointly promoted by the identified Promoterand the HRD Ministry with an authorized capital of Rs 2,000 crore. The Governmentequity would be Rs 2,000 crore. The Government would be Rs 1,000 crore.
HEFA would be formed as a SPV within PSUBank/Government-owned-NBFC (Promoter). It would leverage the equity to raise upto Rs 20, 000 crore for funding projects for infrastructure and development ofworld class Labs in IITs/IIMs, NITs and other such institutions.
About Higher Education Financing Agency (HEFA)
HEFA would finance the civil and lab infrastructureprojects through a 10-year loan. The principal portion of the loan will berepaid through the ‘internal accruals’ (earned through the fee receipts,research earnings etc) of the institutions. The Government would service theinterest portion through the regular Plan assistance.
