HEFA to allot Rs. 1 lakh crore for education

HEFA to allot Rs. 1 lakh crore for education

News:

1. Recently, the Union Cabinet approved the proposal to expand the capital base of Higher Education Funding Agency (HEFA).

Important fact:

2. The Cabinet permitted the HEFA to mobilize Rs 1 lakh crore to meet the infrastructure needs of the institutions.

3. The CCEA has also approved increasing the authorized share capital of HEFA to Rs 10,000 crore and approved infusing additional government equity of Rs 5,000 crore in HEFA.

4. The funding will also be available to government-run schools including Kendriya Vidyalas and Jawahar Navodaya Vidyalayas.

5. It will help build speedier infrastructure of these schools.

6. About HEFA:

• Higher Education Financing Agency (HEFA) is a proposed not-for-profit agency with initial capital base of Rs. 1000 Crore.
• It was announced in Union Budget 2016-17.
• The major objective of the HEFA is to leverage funds from the market and supplement them with donations and CSR funds.
• These funds will be used to finance improvement in infrastructure in top educational institutions.
• The capital of the fund will be used to finance capital expenditure for building quality in infrastructure in IITs, IIITs, and IISERs and central universities.
• It will also be used to fund state-of-the art research and other infrastructure.