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- Rs. 2,000 crore interest-free loan for five IITs and one NIT will be approved by HEFA.
- Interest-free loan will be provided to promote research, academic and infra projects at the premier technical institutes of the country.
On November 29, 2017, Union Minister of Human Resource and Development, Mr. Prakash Javadekar has announced that the central government has chosen six technical institutes across the country to provide Rs. 2,000 crore worth interest-free loans with an objective to encourage research in higher learning institutes.
HEFA (Higher Education Financing Agency) will approve Rs. 2,000 crore worth interest-free loans for the following six institutes: -
- National Institute of Technology, Suratkal (Mangalore, Karnataka)
- Indian Institute of Technology, Kharagpur
- Indian Institute of Technology, Madras
- Indian Institute of Technology, Bombay
- Indian Institute of Technology, Delhi
- Indian Institute of Technology, Kanpur
Through interest-free loans, these six premier technical institutes will promote academic, research and infra projects.
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A senior official associated with HRD Ministry revealed that Rs. 1,038 crore was sanctioned for supporting infrastructure while Rs. 1,028.17 crore has been sanctioned for academic and research facilities.
The union government has formed HEFA with a special purpose to rise through debt market Rs. 20,000 crore. The agency will further provide interest-free loans to help higher learning institutes create infrastructure, particularly research infrastructure.
The Union Cabinet approved the formation of HEFA in September 2016. On February 16, 2017, Canara Bank signed Memorandum of Understanding with MHRD to make HEFA functional.
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HRD Minister Javadekar revealed that the major or principal portion of HEFA loan would be repaid with the ‘internal accruals’ of the institutions. Through the regular plan assistance, the government will serve the interest portion, he highlighted.
All the higher education institutes that are centrally funded are eligible to join as members of HEFA.
