The Cabinet on Monday approved the creation of the Higher Education Financing Agency (HEFA), taking a step closer to developing high quality infrastructure in premier educational institutions.
The HEFA would be jointly promoted by the identified promoter and the Ministry of Human Resource Development with an authorised capital of ₹2,000 crore, out of which the government’s equity would be ₹1,000 crore.
“The agency would be set up as a special purpose vehicle within a PSU bank/government-owned-NBFC (Promoter). It would leverage the equity to raise up to ₹20,000 crore for funding projects for infrastructure and development of world class labs in IITs/IIMs/NITs and other institutions,” the statement said.
All centrally funded higher educational institutions would be eligible for becoming HEFA members. The institution will need to escrow a specific amount from their internal accruals to HEFA for 10 years.
“This secured future flows would be securitised by the HEFA for mobilising the funds from the market. Each member institution would be eligible for a credit limit as decided by HEFA based on the amount agreed to be escrowed from the internal accruals,” it added
Housing pactThe Cabinet has given its expost-facto approval for the MoU between India and Kenya on cooperation in the field of National Housing Policy Development and Management.