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The Minister of State (HRD), Dr Satya Pal Singh recently provided a written reply to a Rajya Sabha question on Expansion of capital base of higher education financing agency to Rs. 10,000 crore has been approved by the Central Government.
The Government has approved the expansion of capital base of Higher Education Financing Agency (HEFA) to Rs. 10,000 crore.
In order to meet the demands of educational infrastructure creation under “Revitalising Infrastructure; Systems in Higher Education (RISE by 2022), HEFA has been authorised to leverage and mobilise resources from the market through commercial borrowings or by issuing Government guaranteed bonds.
All financing of educational infrastructure of Centrally Funded Educational Institutions would henceforth be through HEFA loans, with the Government undertaking complete interest servicing for all institutions and repayment of principal in various bands, based on the age profile and financial capacity of the educational institutions.
There are five financing windows as follows:
I. Technical Institutions more than 10 yr old: would repay the whole Principal Portion from the internally generated budgetary resources. 100% of interest costs would be serviced by Government.
II. Technical Institutions started between 2008 and 2014: would repay 25% of the principal portion from internal resources. 75% of the principal and 100% of interest costs would be serviced by Government.
III. Central Universities started prior to 2014: will repay 10% of the principal portion from internal resources. 90% of principal and 100% of interest costs would be serviced by Government.
IV. Newly established Institutions (started after 2014) (for funding construction of permanent campuses): Government would completely service the principal and interest costs of a loan through OH-31. This would be applicable to specified categories of Central Government Educational Institutions under MHRD unable to generate adequate internal resources for principal repayment.
V. Other educational institutions that are grant-in-aid institutions of Ministry of Health: Sponsoring Department/Ministry to give a commitment for complete servicing of the principal and interest by ensuring adequate funds in the OH-31 for the institution.
This information was given by the Minister of State (HRD), Dr Satya Pal Singh today in a written reply to a Rajya Sabha question.
