Question : Higher Education Financing Agency

(a) whether the Government has approved the setting up of the Higher Education
Financing Agency (HEFA);
(b) if so, the details thereof including the objectives behind the move and the time by
which HEFA will be set-up and start functioning;
(c) whether HEFA has been envisaged as a Special Purpose Vehicle to be promoted by the
Government and a Public Sector/ Undertaking Bank or Government owned nonbanking
financial company and if so, the details thereof;
(d) whether HEFA would also mobilise Corporate Social Responsibility (CSR) funds from
public sector and private companies; and
(e) the details of how the agency is expected to boost research and research oriented
infrastructure in institutions including National Institute of Technologies (NITs), Indian
Institutes of Technologies (IITs), Indian Institutes of Sciences (IISs)?

MINISTER OF STATE IN THE MINISTRY OF HUMAN RESOURCE
DEVELOPMENT
(DR. MAHENDRA NATH PANDEY)

(a) to (e): Yes, Madam. The Government has approved the proposal for setting up the Higher
Education Financing Agency (HEFA) for financing creation of required infrastructure and for
promotion of research facilities in the centrally aided institutions of higher learning by
leveraging funds from the market. The Government would provide equity of Rs. 1,000 Cr for
setting up the HEFA which will be established as a Non Banking Financing Company
(NBFC) and work as Special Purpose Vehicle (SPV) with the association of a PSU Bank.
HEFA would also mobilize Corporate Social Responsibility (CSR) funds from corporates.
The loans provided by HEFA to the institutions would be serviced from the internal accruals
of these institutions, and the Government would meet the cost of interest on such loans. This
is expected to have a positive impact in improving the quality of education in the centrally
funded higher educational institutions without burdening the student community.
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