Higher Education Financial Agency (HEFA) is to be set up by the government to encourage research in institutes like IITs, IIMs and other higher education institutes. The fund of up to 20,000 crores can be given to these institutes to build up research oriented infrastructure which can meet up to the international standards.
In the Union cabinet meeting, chaired by the Prime minister Narendra Modi, the proposal to set HEFA was cleared by the cabinet. HEFA would be jointly promoted by an identified promoter and HRD ministry with an authorized capital of 2,000 crores.
In a statement released by HRD ministry, it is said, "The HEFA would also mobilize Corporate Social Responsibility (CSR) funds from PSUs and corporates, which would be in turn released for promoting research and innovation in these institutions on grant basis."
It adds, "HEFA would finance the civil and lab infrastructure projects through a 10-year loan. The principal portion of the loan will be repaid through internal accruals (earned through fee, researches, etc.) of the institutions."