IITs to Channel up to 25% of the Govt Loan for Higher Education Institutes

Published: | February 27, 2018
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).

The Indian 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 for central funded institutes (CFIs) i.e. Revitalising Infrastructure and Systems in Education (RISE).

According to RISE, all CFIs i.e. IITs, IIMs, IISERs as well as NITs can 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

Also Read: Gujarat Budget 2018: Grants worth Rs 506 Crore to be released for Welfare of Educationally backward classes

RISE has been introduced in order to provide financial support for infrastructure development at CFIs through the Higher Education Funding Agency (HEFA). Till 2017, CFIs were given education grants of up to Rs. 10,000 crore per year for infrastructure development. Government officials have stated that moving from grant assistance to loans will ensure more funds, increased accountability and completion of projects in the required timeframe.

Canara Bank has partnered with the government to get the HEFA running 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, the HRD Ministry is 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.

Comments

Subscribe to CollegeDekho News

Apply Now
Experts image

Want to learn more about college options and to secure an admission now!

CollegeDekho's expert counsellors can help you with all your doubts