The HRD ministry has decided on the creation of a Higher Education Financing Agency (HEFA) that will see to the provision of adequate funds for building more IITs and IIMs or provide infrastructural funding. The creation of HEFA will soon materialize and would be formed as a company under Section 8 of the Companies Act. It would be chaired by the higher education secretary as decided by the members.
The CEO of HEFA needs to be a professional, most likely from the banking sector, while the Board would be a mix of donors and institutions chosen on a rotation basis since it is ultimately going to be a Non-Banking Financial Company (NBFC). As per our Finance Minister Arun Jaitley, the government would set up HEFA with an initial base of Rs 1,000 crore and the organization will leverage funds from the market and supplement that with donations from CSR funds to meet requirements for providing sufficient infrastructural requirements for the country’s top educational institutions.
The HEFA is supposed to start with an initial amount of Rs 1,000 crore, the fund, over the next five years, would grow to over Rs 20,000 crore through leveraging of the markets and Corporate Social Responsibility (CSR) contributions. The policy would give interest-free loans to higher educational institutions for constructing new campuses, expanding or renovating existing infrastructure and creating state-of-the- art laboratories. All central and state higher educational institutions would be eventually made eligible for joining as members of HEFA but subjected to certain conditions. This policy is sure to provide a solid boost to our higher education.
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