Why in News?
HEFA is ready to discuss and approve proposals for financial support from the top 5 IITS.
FACTS FOR PRELIMS
Higher Education Financing Agency (HEFA)
It was announced in the 2016-17 budget as a Non-Profit agency to facilitate finds to boost infrastructure, especially state of the art laboratories, in higher educational institutions.
The major objective of the HEFA is to leverage funds from the market and supplement them with donations and CSR funds.
i) It would be set up under Companies Act and will be registered with RBI has Non-banking Finance Company (NBFC).
ii)It will be set up with joint participation by the government and philanthropic donors.
iii)All centrally funded higher educational institutions will automatically be added as members.
i) An institute will be eligible for a credit limit of 5 times the annual inflow of the student fee from the institution.
ii)The institute can draw interest-free funds against an approved capital or research project and repay the amount over 5-10 years through the es-crowed student fee.
iii) Each institute will have to prepare a detailed master plan on infrastructure gaps that will be assessed by an independent group before releasing amount sought.
iv)HEFA will monitor implementation, fund utilisation& review outcome, thus necessitating greater financial discipline across institutes.