Higher Education Financing Agency (HEFA) -UPSC

Higher Education Financing Agency incorporated on 31st May 2017, is a joint venture of Ministry of Education, GOI and
Canara Bank with an agreed equity participation in the ratio of 90.91% and 09.09%
respectively.
• HEFA is registered under the Companies Act 2013 as a Union Govt company and as Non–
deposit taking NBFC with RBI.
• VISION: To enable India’s premier educational institutions to excel and reach the top in global
rankings by financing building world class infrastructure including R&D Infra.
Functions:
• It will mobilize resources from the market by way of equity from individuals / corporates
and by issue of bonds to finance the requirement.
• It provides financial assistance for creation of educational infrastructure and R&D in India’s
premier educational Institutions.
• Encourages scientific and technological developments by supporting R&D facilities for
conducting high-quality research.
• Channelises CSR contributions from companies and donations for various schemes in
uplifting higher education.


How Higher Education Financing Agency works? What are the advantages?


The funding under HEFA will replace the current grant assistance by GOI for infrastructure
projects in premier educational institutions.
All the Educational Institutions set up/funded referred by concerned ministries would be eligible
for financing their capital expenditure from HEFA.
• HEFA would be able to fund larger basket of institutions as compared to grants approach.
• Top class infrastructure can be created in quick time so that the country realises the potential
of its demographic dividend in a faster time frame.


RISE 2022:

“Revitalising Infrastructure and Systems in Education (RISE) by 2022”, is a major initiative
launched by GOI in the FY 2018-19 budget.
• HEFA’s scope under RISE has been greatly expanded from initial objective of financing
infrastructural needs of select Higher Educational Institutions in India to the extent of Rs.
20,000 crores.
• It is proposed to accelerate the investment in these institutions to Rs.1,00,000 crores over the
next 4 years as under

For solved

UPSC ESSAYS click here

GS Paper 1 click here


Gs Paper 2 click here

Gs paper 3 click here

GS paper 4 click here

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