HEFA - Current Affairs Questions and Answers

ANSWER: Higher Education Financing Agency

Explanation:
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

ANSWER: Higher Education Financing Agency

Explanation:
The agency has been announced with initial capital base of INR 1000 crore which will leverage funds from the market and work for the purpose of creating infrastructure for IITs and other top educational institutions. Regulatory architecture is also in place for 10 public and private institutions to emerge as world class teaching research institutions. The FM also announced the establishment of Digital Depository for academic certificates and opening of over 62 Navodaya Vidyalayas. HEFA will be an NPO for leveraging funds from the market and supplementing them with donations and CSR funds. Funds will be used for financing improvement in infrastructure in top institutions serviced through internal accruals.