Govt to set up agency to provide up to Rs 20k cr for research

in IITs New Delhi, Sep 12 (PTI) In a bid to boost innovation atpremier institutions, an agency will soon be set by thegovernment to provide funds up to Rs 20,000 crore for buildingresearch-oriented infrastructure at IITs, IIMs and othercentres of higher education. The HRD Ministry’s proposal to this effect was cleared ata meeting of the Union Cabinet chaired by Prime MinisterNarendra Modi today. Announcing the decision, HRD Minister Prakash Javadekarsaid a Higher Education Financing Agency (HEFA) would bejointly promoted by an identified promoter and his ministrywith an authorised capital of Rs 2,000 crore of whichgovernment equity would be Rs 1,000 crore. The HEFA would be formed as a Special Project Vehicle(SPV) with a PSU Bank/Government-owned NBFC as promoter and itwould leverage the equity to raise up to Rs 20,000 crore forfunding infrastructure projects and development of worldclass laboratories in institutions like IITs, IIMs and NITsetc., Javadekar said. The HEFA would also mobilise Corporate SocialResponsibility (CSR) funds from PSUs and Corporates, whichwould be released for promoting research and innovation inthese institutions on grant basis, a statement released by theministry said. HEFA would finance the civil and lab infrastructureprojects through a 10-year loan, the statement said, addingthat principal portion of the loan will be repaid through the’internal accruals’ (earned through the fee receipts, researchearnings etc.) of the institutions. The government would service the interest portion throughregular Plan assistance. All centrally funded higher educationinstitutions would be eligible for joining the HEFA as itsmembers. For joining as members, the Institution should agree toopen an escrow account with a specific amount from theirinternal accruals with HEFA for a period of 10 years. Thesecured future flow from the account would be securitised bythe HEFA for mobilising funds from the market. officials saidfunds could also be raised using bond market by floatingeducation bonds. Each member institution would be eligible for a creditlimit as decided by HEFA based on the amount agreed to beescrowed from the internal accruals, the statement said. The HRD minister also said he is planning to introducetarget-based bonuses and penalties for educationalinstitutions as is done in the case of roads and highways. "If a project is completed before time, we will provide abonus and if it is not completed as per schedule, there can bea penalty for the entity concerned," Javadekar said. PTI ADSNAB PYK SKSK