Creation of Higher Education Financing Agency Approved
Q. What does HEFA stand for, in the context of education?- Published on 14 Sep 16a. Higher Education Financing Agency
b. Higher Energy Financing Agency
c. Higher Education Financial Association
d. None of the above
ANSWER: Higher Education Financing Agency
Union Cabinet on 12th Sept 2016 approved the creation of HEFA or Higher Education Financing Agency.
HEFA will be established to provide a major push for creation of quality infrastructure in premier educational institutions.
- HEFA will be jointly promoted by Identified Promoter and MHRD
- It has an authorised capital of INR 2000 crore
- Government equity will be INR 1000 crore rupees.
- HEFA will be formed as an SPV within a PSU Bank/Government owned NBFC
- It will leverage the equity to rise up to INR 20000 crore rupees for funding projects for infrastructure and development of world class labs in IITs/IIMs/NITs and other such institutions
- It will also mobilise CSR funds from PSUs/Corporates in turn to be released for promoting research and innovation on grant basis in these institutions
- HEFA will finance the civil and lab infrastructure projects through a 10 year on
- Centrally Funded Higher Educational Institutions will join HEFA as embers
- For joining as members, institutions need to escrow specific amount from internal accruals to HEFA for 10 years
- Secured future flows will be securitised by the HEFA for mobilising the funds from the market.
- Each member institution will be eligible for credit limit as per HEFA based on amount agreed to be escrowed from internal accruals
