Cabinet Committee Approves Funds to Enhance Scope of Higher Education Funding Agency (HEFA)
The Cabinet committee has asked HEFA to mobilize Rs. 1,00,000 crore for Revitalising Infrastructure and Systems in Higher Education (RISE) by 2022. The funds will address the needs of all educational institutes (government-run) in the country.
On July 04, 2018, the CCEA (Cabinet Committee on Economic Affairs) approved a proposal to expand the scope of Higher Education Funding Agency or HEFA by enhancing its capital base to Rs. 10,000 crore. The cabinet committee further assigned HEFA with a responsibility to mobilise Rs. 1,00,000 crore for RISE (Revitalising Infrastructure and Systems in Higher Education) by 2022.
As per the decision that was taken by CCEA, the approved proposal will benefit all the higher educational institutions, specifically set up after 2014. With the approved funds, central universities with very limited internal resources can boost their infrastructure facilities.
Similarly, premier medical institutes like AIIMS can develop health education infrastructure with the approved funds. Kendriya Vidyalayas can also take steps to enhance infrastructure for providing better quality school education.
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The CCEA has also approved the modalities of repaying the principal portion of the fund and five windows for financing under HEFA. In all these cases, interest continues to be serviced through government grants.
The modalities have been approved with a motive to raise money from the market through commercial borrowings and government guaranteed bonds. However, the decision in this regard would be taken in consultation with the Department of Economic Affairs. The target is to mobilise the funds at the least cost.
The funds will address the needs of all educational institutes (government-run) in the country with differing financial capacity in an inclusive manner.
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So far, HEFA approved funding proposals worth Rs. 2,016 crore. As per the existing arrangement, the institute repays the total principle portion over ten years. On the other hand, the government will serve the interest portion by providing additional grants to the institution.