The Union Cabinet has given the nod to Human Resource Development (HRD) Ministry to raise a Rs.1 trillion in funding from the market to support education research and infrastructure. The funding will be sourced from the number of sources like education bonds, commercial borrowings, and corporate houses.
The funds will be raised through Higher Education Financing Agency (HEFA), a recently framed Non-Banking Financial Company (NBFC) under the HRD ministry. It is reported that this step will lessen the budgetary pressure on the exchequer at a time when the government is facing funds crunch.
Law minister Ravi Shankar Prasad, the cabinet committee on economic affairs 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 mobilize Rs.100,000 crore,” said after the cabinet meeting.
Kendriya Vidyalaya (KVs), Navoda Vidyalayas (NVs) and new medical colleges and central universities established after 2014 will get grants to service HEFA loans. So far, funding proposals worth Rs. HEFA and nearly Rs have approved 2,016 crores from some of the older IITs. 9,000 crore more of loan proposals are in the pipeline for development of education infrastructure and research capabilities at various IITs, NITs, and other technical schools.