Higher Education Financing Agency (HEFA) gets nod of approval from Union Cabinet

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Giving a major push for creation of high-quality infrastructure in premier educational institutions, the Union Cabinet chaired by PM Narendra Modi has approved the establishment of a Higher Education Financing Agency (HEFA). The financing agency will be collaboratively promoted by the Ministry of Human Resource Development (MHRD) and an identified promoter with an authorised capital of Rs 2,000 cr. HEFA is designed to operate as a Special Purpose Vehicle (SPV) within a PSU bank/ government-owned promoter, which should be a non-banking financial company (NBFC). HEFA would leverage the equity to rise up to Rs 20,000 cr for funding projects for infrastructure and world class labs at IITs/IIMs/NITs and such other institutions.