Giving a major push for creation of high quality infrastructure in premier educational institutions, the Human Resource Development (HRD) ministry will brief Prime Minister’s Office (PMO) on higher education financing agency (HEFA) ahead of the upcoming Budget.
While school education is likely to be the focus of Budget 2017, HEFA was approved by the Union Cabinet, chaired by Prime Minister Narendra Modi, in September last year.
“An enabling regulatory architecture will be provided to 10 public and 10 private institutions to emerge as world class Teaching and Research Institutions. This will enhance affordable access to high quality education for ordinary Indians. A detailed scheme will be formulated,” said Finance Minister Arun Jaitley, during his Budget speech in February last year.
FM Jaitley also reiterated that HEFA would be set up with an initial capital base of Rs 1,000 crore.
Important Facts
HEFA would be jointly promoted by the identified Promoter and the Ministry of Human Resource Development (MHRD) with an authorized capital of Rs 2,000 crore. The Government equity would be Rs 1,000 crore.
It would be jointly formed as a SPV within a PSU Bank/ Government - owned-NBFC (Promoter).
It would finance the civil and lab infrastructure projects through a 10 year-loan.
All the Centrally funded Higher Educational Institutions would be eligible for joining as members of HEFA.