Cabinet approves higher education financing agency

To give a major push for the creation of high quality infrastructure in premier educational institutions, the union cabinet last week approved the establishment of the Higher Education Financing Agency, reports IANS.

“The HEFA [Higher Education Financing Agency] would be jointly promoted by the identified promoter and the Ministry of Human Resource Development with an authorised capital of Rs2,000 crore [US$298 million]. The government equity would be Rs1,000 crore,” an official statement said, after the meeting of the union cabinet, chaired by Prime Minister Narendra Modi.

The HEFA would finance civil and laboratory infrastructure projects through a 10-year loan. The principal portion of the loan will be repaid through ‘internal accruals’ (earned through the fee receipts, research earnings, etc) of the institutions. The government would service the interest portion through the regular plan assistance.
Full report on The Indian Express site