Centre’s Rs 20k crore push for research infra in IITs

The Union Cabinet, chaired by Prime Minister Narendra Modi, gave its nod to a proposal of the HRD ministry for creation of HEFA on Monday. Speaking to reporters here, HRD minister Prakash Javadekar said HEFA would be jointly promoted by the identified promoter and HRD ministry with an authorised capital of Rs 2,000 crore of which government equity would be Rs 1,000 crore. 

The HEFA would be formed as a special purpose vehicle (SPV) within a PSU Bank/ Government-owned-NBFC (promoter) and it would leverage the equity to raise up to Rs 20,000 crore for funding projects for infrastructure and development of world class labs in institutions like IITs, IIMs and NITs etc, Javadekar said. 

The HEFA would also mobilise Corporate social responsibility (CSR) funds from PSUs and corporates, which would in turn be released for promoting research and innovation in these institutions on grant basis, a statement released by the ministry said. 

HEFA would finance the civil and lab infrastructure projects through a 10-year loan, the statement said, adding that 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. All the centrally funded higher educational institutions would be eligible for joining as members of the HEFA.