New Delhi, July 4 : The Cabinet has approved the proposal for expanding the scope of Higher Education Financing Agency (HEFA) by enhancing its capital base to Rs 10,000 crore and tasking it to mobilise Rs 1,00,000 crore for Revitalizing Infrastructure and Systems in Education (RISE) by 2022.
For availing financing under HEFA, Technical Institutions which are more than 10 years old will have to repay the whole Principal Portion from the internally generated budgetary resources. Similarly, Technical Institutions started between 2008 and 2014 would repay 25% of the principal portion from internal resources, and receive grant for the balance of the Principal portion.
For Central Universities which started prior to 2014 will have to repay 10% of the principal portion from internal resources, and receive grant for the balance of the Principal portion.
For funding construction of permanent campuses of institutions which are newly established (started after 2014), grant would be provided for complete servicing of loan including the Principal and interest.
Under HEFA, all the newly set up AIIMSs and other health institutions, the Kendriya Vidyalayas / Navodaya Vidyalayas would be funded and the Department/Ministry concerned will give a commitment for complete servicing of the principal and interest by ensuring adequate grants to the institution.
The Cabinet has also permitted the HEFA to mobilise Rs 1,00,000 crore over the next 4 years till 2022 to meet the infrastructure needs of these institutions. The CCEA has also approved increasing the authorized share capital of HEFA to Rs 10,000 crore, and approved infusing additional Government equity of Rs 5,000 crore (in addition to Rs 1,000 crore already provided) in HEFA.
The Cabinet Committee on Economic Affairs has also approved that the modalities for raising money from the market through Government guaranteed bonds and commercial borrowings would be decided in consultation with the Department of Economic Affairs so that the funds are mobilized at the least cost.
“This would enable addressing the needs of all educational institutions with differing financial capacity in an inclusive manner.
“This would enable HEFA to leverage additional resources from the market to supplement equity, to be deployed to fund the requirements of institutions. Government guarantee would eliminate the risk factor in Bonds issue and attract investment in to this important national activity,” a statement said.