CENTRE’S NOD FOR ~2,000 CR INTERESTFREE LOANS TO IITS
To encourage research in higher education institutions, the government has approved ~2,000 crore interestfree loans to six institutions including five IITs.
The central government’s Higher Education Financing Agency (HEFA) on Wednesday approved interest-free loan of over for research projects proposed by five Indian Institutes of Technology and National Institute of Technology, Suratkal.
“Today is a historic day for financing the needs and promotion of research and innovation beyond budgetary allocations. The Budget gives ample allocation and grants to Higher Education institutions but still there is a greater need,” HRD minister Prakash Javadekar said.
“While ~1,028.73 crore has been sanctioned for research and academic facilities, Rs 1,038 crore has been approved for supporting infrastructure,” a senior HRD ministry official said.
The Union Cabinet had approved HEFA in September last year as a special purpose vehicle with Canara Bank. It is jointly funded by the promoter/ bank and HRD ministry.
These funds are in addition to the grants that government gives to these institutions. As per the scheme, HEFA would mobilise ~20,000 crore through market borrowing and would release the same to the government institution as interest- free loans.
According to the funding mechanism, an institution can claim 10 times the sum it escrows in the first year.