The Union Cabinet on 12 September 2016 approved the creation of the Higher Education Financing Agency (HEFA).
• The HEFA will be established to give a major push for creation of high quality infrastructure in premier educational institutions.
• It will also mobilise CSR funds from PSUs/Corporates, which will in turn be released for promoting research and innovation in these institutions on grant basis.
• The HEFA will finance the civil and lab infrastructure projects through a 10-year loan.
• All the Centrally Funded Higher Educational Institutions will be eligible for joining as members of the HEFA.
• For joining as members, the Institution should agree to escrow a specific amount from their internal accruals to HEFA for a period of 10 years.
• This secured future flows will be securitised by the HEFA for mobilising the funds from the market.
• Each member institution will be eligible for a credit limit as decided by HEFA based on the amount agreed to be escrowed from the internal accruals.