IITs to Channel up to 25% of the Govt Loan for Higher Education Institutes
- IITs will get the largest part of the development loan from HEFA for the development of infrastructure.
- All centrally funded institutes will get loans under the new model i.e. Revitalising Infrastructure and Systems in Education (RISE).
TheIndian Institutes of Technology (IITs)will get the major portion of the loan reserved by the government for higher education institutes according to the latest budget. This loan will be passed under the new funding model introduced forcentral funded institutes(CFIs) i.e.Revitalising Infrastructure and Systems in Education (RISE).
According to RISE, allCFIsi.e.IITs,IIMs,IISERsas well asNITscan loan funds from a Rs 1,00,000 crore corpus over the next four years. This loan will be granted to the institutes to develop infrastructure and other elements necessary for growth. From this amount, the largest sum has been reserved for the 23 IITs. i.e. Rs 25,000 crore. Following are the details of the loans that different institutes can take from the government.
Loan Amount Allocated for Higher Education Institutes:
Institutes | Loan Amount |
IITs | 25,000 crore |
Central Universities | 20,000 crore |
NITs | 11,300 crore |
Institutes of Eminence | 10,000 crore |
IISERs | 5,000 crore |
IIMs (6 new) | 4,500 crore |
IIITs (established in PPP mode) | 3,000 crore |
IIITs (established by the government) | 2,000 crore |
Language Institutes | 1,000 crore |
Other Centrally Funded Institutes | 1,700 crore |
Schools of Planning and Architecture | 1,500 crore |
New Institutes (unforeseen) | 6,000 crore |
Research Promotion | 9,000 crore |
Total | 1,00,000 crore |
RISEhas been introduced in order to providefinancial supportfor infrastructure development at CFIs through theHigher Education Funding Agency (HEFA). Till 2017, CFIs were given education grants of up to Rs. 10,000 crore per year forinfrastructure development. Government officials have stated thatmoving from grant assistance to loanswill ensure more funds, increased accountability and completion of projects in the required timeframe.
Canara Bank has partnered with the government to get theHEFArunning and functional in order to mobilise funds worth Rs. 1,00,000 crore to grant loans. For this HEFA will require an equity of Rs 10,000 crore. Of this the government will provide Rs 8,500 crore and the remaining will be provided by the Canara Bank. However, theHRD Ministryis yet to get an approval from the Union Cabinet’s approval in order to provide government’s share of the HEFA equity.
Also Read:Govt. Agreement may hold IITs Accountable to Get Funds
Loans taken by the institutes from HEFA, under the RISE programme, will be paid back within the duration of 10 years. Loan repayment modes will differ on the basis of internal revenue of the institutes.