Bhubaneswar/New Delhi: The higher educational institutions across the country such as IITs, IIMs, NITs and Central universities will now get more funds into their pocket for infrastructure development.
The Higher Education Financing Agency (HEFA) has been functional which will mobilise market funds for improvement of laboratories, hostels and also construction of new buildings in these top institutions.
HEFA issued the credit policy framework towards this purpose after a detailed discussion with the Human Resource Development (HRD) ministry on August 16.
The Narendra Modi-led BJP government had set up the financing agency with an aim to provide these institutions with adequate funds which would enable them to take up research oriented infrastructure development.
These higher educational institutions can now raise funds directly from HEFA which will help them getting financially self-sustaining.
To apply for a loan of Rs 100 crore, an institution will have to ensure that it can escrow at least 10 per cent or Rs10 crore per year from its own resources, an HT report says.
Worth mentioning that the government often receives request from several IITs, IIMs and NITs to disburse more funds as what they get for research-oriented work and overall upgradation hardly meet their needs.
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Note: The HEFA loans would be over and above the budgetary support.