HEFA approves 1 lakh crore rupees for education in India. On Wednesday July 4, 2018, the Union Cabinet allowed Higher Education Funding Agency (HEFA) to allot 1 lakh crore rupees to fund research and academic infrastructure in higher educational institutions by 2022. Government-run schools Kendriya Vidyalayas and Jawahar Navodaya Vidyalayas will also be benefitted through the allotted fund. The allotted fund will result to achieve education goals set by the government.
“This will help build speedier infrastructure of new Kendriya Vidyalayas and Jawahar Navodaya Vidyalayas,” Minister of Human Resource Development Prakash Javadekar tweeted. “Indian Institutes of Technology, National Institutes of Technology, Indian Institutes of Science Education and Research, other Central universities and medical colleges will also get funds from the agency.”
Over 10 years, the entire principle portion is repaid by the institution in the existing arrangement. The government of India provides additional grants to the Institutions to serve the interest portion. As per the government release, funding proposals worth 2,016 crore rupees have been approved by the HEFA. Earlier, the union cabinet has approved the creation of the agency in September 2019. The agency has distributed 2,066 crore rupees for six higher education institutions such as IIT Delhi, IIT Mumbai, IIT Kharagpur, IIT Kanpur, and NIT, Suratkal to improve infrastructure in November 2017.
Higher Education Financing Agency (HEFA) is a non-banking financing company set up last year and a joint venture of Ministry of HRD, GOI and Canara Bank. HEFA was registered under Section 8 under the Companies Act 2013 as a Union Government company and as Non–deposit taking NBFC with RBI. HEFA mobilize extra-budgetary resources for building crucial infrastructure in Central higher educational institutions. HEFA is greatly expanded to cover school education, educational institutes under Ministry of health. HEFA is working to develop India’s education; it is also working to develop India’s top-ranked institutions like IIT’s, NIT’s, IISCs, IIIT’s, and AIIMS into Globally top ranking institutions. HEFA provides fund to build educational infrastructure, R&D infrastructure in the Indian educational institutions.