Context: Jawaharlal Nehru University got approval from the Higher Education Funding Agency (HEFA) for ₹455.02 crore for construction of new academic buildings, hostels, research centres and installation of integrated and unified Enterprise Resource Planning (ERP) system.
About Higher Education Funding Agency (HEFA)
- Higher Education Financing Agency (HEFA) is a joint venture company of Canara Bank and Ministry of Human Resource Development GoI.
- Objectives: HEFA provides financial assistance for creation of educational infrastructure and R&D in India’s premier educational Institutions.
- The HEFA also mobilises CSR funds from PSUs/Corporates, which would be released for promoting research and innovation in these institutions on a grant basis.
- The HEFA finances the civil and lab infrastructure projects through a 10-year loan. The principal portion of the loan will be repaid through the ‘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.
- The HEFA would be jointly promoted with an authorised capital of Rs.2,000 crore. The Government equity would be Rs.1,000 crore.
- The HEFA would leverage the equity to raise up to Rs. 20,000 crore for funding projects for infrastructure and development of world class Labs in IITs/IIMs/NITs and such other institutions.
- Membership: All the Centrally Funded Higher Educational Institutions would be eligible for joining as members of the HEFA.
- For joining as members, the Institution should agree to escrow a specific amount from their internal accruals to HEFA for a period of 10 years.
Image Source: https://hefa.co.in/