Cabinet has approved a proposal to raise a massive fund with Rs 1 trillion for the Higher Education Financing Agency (HEFA) to revive and aid infrastructural and system updates in higher educational sector for the country.
In a bid to boost higher education funds, the Union Cabinet today approved a proposal that expands the scope of Higher Education Financing Agency (HEFA) to Rs 1 trillion i.e. Rs 10,000 crore and mobilising it with a massive amount of Rs 1,00,000. With the massive expansion in market-raised funds, the government aims to revitalise infrastructure and system changes – henceforth boosting the quality of higher education in India. The scheme is called “Revitalising Infrastructure and Systems in Education (RISE)” and is expected to be mobilised by the HEFA by 2022.
These higher education funds will be raised from market through various sources like education bonds, commercial borrowings and corporate houses. Also, the Rs 1 trillion worth funding includes existing and subsequent contribution from the Canara Bank, which is a joint venture running the HEFA along with the HRD Ministry of India. The approval of the proposal has been strategically placed as it will off-load the budgetary burden on the government for infrastructural changes without compromising it – which is a smart move, especially when the government is facing funding crunch.
With the raised funds, HEFA will set up investments in some of the premier institutions of the country including educational and health institutions. It will also include infrastructural grant for all newly set AIIMS and other hospitals as well as government run higher educational institutes like the Kendriya Vidyalayas and Navodaya Vidyalayas for better higher education quality.