In a move to boost research, infrastructure and innovation in the premier institutes like IITs, IIMs and NITs, MHRD has given nod to Higher Financing Agency (HEFA) which will procure 20,000 crore for the purpose.
In a time when the top raking Indian Institutes of Management (IIMs) and Indian Institutes of Technology (IITs) are losing their rankings on the world level, Ministry of Human Resource Development (MHRD) is trying every little bit possible at its level to better the otherwise getting dismal scenario. When the scenario at the IIMs and IITs is higgledy-piggledy and marred by poor student-teacher ratio, few foreign students, PhD scholars, poor gender ratio and so on, the MHRD has cleared up the setting up of the Higher Financing Agency (HEFA) to help these premier institutes with ample funds.
This agency will be instrumental in procuring funds up to a massive amount of INR 20,000 crore to boost infrastructure, innovation and research in the premier educational institutions. As per the HRD minister, the government of India, Prakash Javadekar, the agency will be jointly promoted by an identified promoter and the ministry with an authorised capital of INR 2000 crore with a government equity of INR 1000 crore.
As a Special Project Vehicle (SPV) with a PSU bank/government-owned Non-bank financial company as promoter, HEFA will leverage the equity to raise up to INR 20,000 crore for funding infrastructure projects and developing world class laboratories in institutes like IITs, NITs, IIMs etc. Besides this, the agency will also take up the task to mobilise the corporate social responsibility funds from corporate and PSUs to promote innovation and research in the IITs and IIMs on a grant basis.