In its effort to raise capital from the marketplace to fund infrastructure uplift of higher institutions, the Cabinet on Monday approved creation of non-banking higher education financing agency (HEFA).
The agency, set up with an authorised capital of Rs 2,000 crore, will issue educational bonds to raise funds from the market to invest on infrastructure upgrades at institutions like the IITs and NITs.
The Centre also approved to continue a World Bank-supported project to improve the quality of nearly 200 government funded and government aided technical institutions.
With a total outlay of Rs 2,660 crore, the project would have a specific focus on institutes functioning in seven "low-income states", including Jharkhand, Madhya Pradesh, Chhattisgarh, Rajasthan and Uttar Pradesh (UP). All the states are BJP-ruled while UP is heading for polls.
Focus is also being laid on institutes in Bihar, Odisha, Jammu & Kashmir, Uttarakhand, the seven northeastern states, Sikkim and Andaman & Nicobar islands. Prime Minister Narendra Modi presided over the meeting.
HRD Minister Prakash Javadekar told reporters that HEFA will be set up as a "special purpose vehicle" either within a public sector bank or under a government-owned non-banking finance company, which will act as its promoter.
The agency, jointly run by the promoter and the HRD Ministry with equal share of
Rs 1,000 crore each, will issue bonds in the market to raise up to Rs 20,000 crore.
"It will also raise money from the debt market (through government securities), besides mobilising funds from PSUs and corporates under corporate social responsibility," the minister added. Centrally-funded higher educational institutions will be given loans from the agency for improving their infrastructure, particularly world class research facilities, for a period of 10 years.
"While the principal amount will have to be repaid by the institution concerned, payment of interest on such loans will be born by the government," Javadekar explained.
![]( "The agency, set up with an authorised capital of Rs 2,000 crore, will issue educational bonds to raise funds from the market to invest on infrastructure upgrades at institutions like the IITs and NITs. pti file photo")
In its effort to raise capital from the marketplace to fund infrastructure uplift of higher institutions, the Cabinet on Monday approved creation of non-banking higher education financing agency (HEFA).
The agency, set up with an authorised capital of Rs 2,000 crore, will issue educational bonds to raise funds from the market to invest on infrastructure upgrades at institutions like the IITs and NITs.
The Centre also approved to continue a World Bank-supported project to improve the quality of nearly 200 government funded and government aided technical institutions.
With a total outlay of Rs 2,660 crore, the project would have a specific focus on institutes functioning in seven "low-income states”, including Jharkhand, Madhya Pradesh, Chhattisgarh, Rajasthan and Uttar Pradesh (UP). All the states are BJP-ruled while UP is heading for polls.
Focus is also being laid on institutes in Bihar, Odisha, Jammu & Kashmir, Uttarakhand, the seven northeastern states, Sikkim and Andaman & Nicobar islands. Prime Minister Narendra Modi presided over the meeting.
HRD Minister Prakash Javadekar told reporters that HEFA will be set up as a "special purpose vehicle” either within a public sector bank or under a government-owned non-banking finance company, which will act as its promoter.
The agency, jointly run by the promoter and the HRD Ministry with equal share of
Rs 1,000 crore each, will issue bonds in the market to raise up to Rs 20,000 crore.
"It will also raise money from the debt market (through government securities), besides mobilising funds from PSUs and corporates under corporate social responsibility,” the minister added. Centrally-funded higher educational institutions will be given loans from the agency for improving their infrastructure, particularly world class research facilities, for a period of 10 years.
"While the principal amount will have to be repaid by the institution concerned, payment of interest on such loans will be born by the government,” Javadekar explained.
The agency, set up with an authorised capital of Rs 2,000 crore, will issue educational bonds to raise funds from the market to invest on infrastructure upgrades at institutions like the IITs and NITs.
The Centre also approved to continue a World Bank-supported project to improve the quality of nearly 200 government funded and government aided technical institutions.
With a total outlay of Rs 2,660 crore, the project would have a specific focus on institutes functioning in seven "low-income states", including Jharkhand, Madhya Pradesh, Chhattisgarh, Rajasthan and Uttar Pradesh (UP). All the states are BJP-ruled while UP is heading for polls.
Focus is also being laid on institutes in Bihar, Odisha, Jammu & Kashmir, Uttarakhand, the seven northeastern states, Sikkim and Andaman & Nicobar islands. Prime Minister Narendra Modi presided over the meeting.
HRD Minister Prakash Javadekar told reporters that HEFA will be set up as a "special purpose vehicle" either within a public sector bank or under a government-owned non-banking finance company, which will act as its promoter.
The agency, jointly run by the promoter and the HRD Ministry with equal share of
Rs 1,000 crore each, will issue bonds in the market to raise up to Rs 20,000 crore.
"It will also raise money from the debt market (through government securities), besides mobilising funds from PSUs and corporates under corporate social responsibility," the minister added. Centrally-funded higher educational institutions will be given loans from the agency for improving their infrastructure, particularly world class research facilities, for a period of 10 years.
"While the principal amount will have to be repaid by the institution concerned, payment of interest on such loans will be born by the government," Javadekar explained.
In its effort to raise capital from the marketplace to fund infrastructure uplift of higher institutions, the Cabinet on Monday approved creation of non-banking higher education financing agency (HEFA). The agency, set up with an authorised capital of Rs 2,000 crore, will issue educational bonds to raise funds from the market to invest on infrastructure upgrades at institutions like the IITs and NITs.
The Centre also approved to continue a World Bank-supported project to improve the quality of nearly 200 government funded and government aided technical institutions.
With a total outlay of Rs 2,660 crore, the project would have a specific focus on institutes functioning in seven "low-income states”, including Jharkhand, Madhya Pradesh, Chhattisgarh, Rajasthan and Uttar Pradesh (UP). All the states are BJP-ruled while UP is heading for polls.
Focus is also being laid on institutes in Bihar, Odisha, Jammu & Kashmir, Uttarakhand, the seven northeastern states, Sikkim and Andaman & Nicobar islands. Prime Minister Narendra Modi presided over the meeting.
HRD Minister Prakash Javadekar told reporters that HEFA will be set up as a "special purpose vehicle” either within a public sector bank or under a government-owned non-banking finance company, which will act as its promoter.
The agency, jointly run by the promoter and the HRD Ministry with equal share of
Rs 1,000 crore each, will issue bonds in the market to raise up to Rs 20,000 crore.
"It will also raise money from the debt market (through government securities), besides mobilising funds from PSUs and corporates under corporate social responsibility,” the minister added. Centrally-funded higher educational institutions will be given loans from the agency for improving their infrastructure, particularly world class research facilities, for a period of 10 years.
"While the principal amount will have to be repaid by the institution concerned, payment of interest on such loans will be born by the government,” Javadekar explained.