Recent news came up from New Delhi, and union cabinet gives a green flag to the human resources development ministry to raise Rs 1 trillion from the market. The purpose of raising this vast funds from the market to facilitate better educational infrastructure.

From Where Funds is Raised

The question is from where the Indian government raises these vast funds. Funds will be increased from multiple sources. Includes educational bonds, commercial borrowings and corporate houses. These sources provide this funds to the Indian government as loans. Controlled higher educational institutions.

Which includes medical colleges, as well as the schools which come under the central government. Such as Kendriya Vidyalaya and Navodaya Vidyalayas. The focus of union government is to explore more and more innovative sources for education funds.

The funds will be raised through the Higher Education Financing Agency. Cabinet committee on this Friday approved HEFA to enhance and increase the capital base to Rs 10,000 crore. Which is Rs 3300 crore in recent past? The first plan of raising these funds is made on 3 June. Which is approved on this Wednesday.

Statement of Ravi Shankar Prasad

Ravi Shankar Prasad who is the law minister said, “ the cabinet committee on economic affairs approved the proposal for expanding the scope of Higher Education Financing Agency by enhancing its capital base to Rs 10,000 crore and tasking it to mobilise Rs 100,000 crore.”

These Rs 10,000 crore raised capital is contributed by Canara Bank. Canara Bank is also the joint venture partner of the HRD ministry. This joint venture works collectively for establishing and running HEFA.

Prakash Javadekar who is the HRD minister of India termed this decision as a landmark. He said the decision push the research and academic infrastructure. This will automatically lead to the spread of quality education in society.

All the central university which is established before 2014 have to repay 10% of the loan they take. For the remaining loan amount, they receive a grant.

IITs, IIMs, NITs which is more than 10 years old will repay the whole loans from their internal earnings. No grant will be issued to them.