Central funding to boost IITs and NIT Suratkal

HEFA (Higher Education Funding Agency) has sanctioned an interest-free loan worth Rs 2066 crores to six educational institutions. The loans will be provided to IIT Bombay, IIT Delhi, IIT Kanpur, IIT Kharagpur, IIT Madras and NIT Suratkal. HEFA was set up to help and provide financial support to centrally funded institutions like IITs, NITs, IIMs and central universities to help their infrastructural expansion to get higher international rankings. HEFA will provide 10-year loan and the first batch has been sanctioned on 29th Nov 2017.

Details of Fundings:

The loan worth of Rs 2066 crores will be divided among the six institutes.

Loans Provided to various institutes:

  • IIT Bombay- Rs 520 crores
  • IIT Delhi- Rs 200 crores
  • IIT Kanpur- Rs 359 crores
  • IIT Kharagpur- Rs 527 crores
  • IIT Madras- Rs 302 crores
  • NIT Suratkal- Rs 90 crore

The interest accrued on the loans will be paid by the government to HEFA through budgetary provisions.

How IITs and NIT Suratkal is planning to spend the loan?

  • IIT Delhi has proposed to construct hostels for boys and girls and build a central research facility on its Sonipat campus with the sanctioned loan.
  • IIT Bombay decided to use the loan to build a faculty housing, a boys’ hostel and a research park.
  • IIT Kanpur plans to set up a research complex and an engineering core lab.
  • IIT Kharagpur will set up centers of excellence.
  • IIT Madras has decided to construct an electrical sciences block and an innovation center.
  • NIT Suratkal will use the whole worth to buy equipment for their institution.

More about HEFA:

HEFA(Higher Education Funding Agency) is a non-banking financial company set up as a joint venture between Canara Bank and the Union government. The HEFA had its establishment under the Companies Act on 31st May 2017. Canara Bank is the official partner for setting up the Company. The government has sanctioned funds of Rs 250 crores and Canara Bank has also given fundings of Rs 50 crores equity in the HEFA. RBI has granted a license under the RBI Act for HEFA to operate as NBFC on 21st November 2017.

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