In order to line up with the rise in financial requirements in order to provide a good educational infrastructure in the country a proposal has been offered by the Human Resource Development (HRD). According to this proposal, Human Resource Development has asked the Union Cabinet to increase the “capital base to Rs. 10,000 crore” in order to diversify the Higher Education Financing Agency’s scope. The cabinet today has approved the HRD ’s proposal regarding enhancing the capital base.
Besides this “The cabinet committee on economic affairs…approved the proposal for expanding the scope of Higher Education Financing Agency (HEFA) by enhancing its capital base to ₹10,000 crore and tasking it to mobilize ₹100,000 crore,” law minister Ravi Shankar Prasad said after the cabinet meeting.
According to our news sources, Prime Minister Narendra Modi as the chairperson of the cabinet committee on economic affairs has approved this Revitalizing Infrastructure and Systems in Education (RISE) by 2022.
‘Revitalising Infrastructure and Systems in Education (RISE) by 2022′ is not only an initial step to raise the investments regarding infrastructure in premier educational institutions but it will include development for health institutions as well.
Regarding an expand in the facilities provided to all of the institutions, some windows have been kept under HEFA for financial purposes. As per the news sources, the CCEA has approved five windows which means that the institutions which lie among these windows will only be benefitted from these expanded facilities which will sooner or later about to take place. The following five windows can be briefly described as following:
- The technical institutions which have been established 10 years from now will repay the whole principal amount from the internal resources
- While the institutions established between 2008 and 2014 will repay 25% of the principal amount from internal resources and the rest will be granted by the govt.
- Central Universities initiated before 2014 will repay 10% of the principal amount while the rest will be granted by the government
- Grant in Services regarding loans for construction of the campus of the institutions established after 2014.
- And all the health institutions including newly established AIIMS and various other names like the Kendriya Vidyalayas and Navodaya Vidyalayas will be funded by the government.
“This would enable HEFA to leverage additional resources from the market to supplement equity, to be deployed to fund the requirements of institutions. Government guarantee would eliminate the risk factor in Bonds issue and attract investment into this important national activity,” was a statement from the ministry.