Higher Education Financing Agency (HEFA)

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Context: A parliamentary panel has suggested that the Ministry of Education need to do more to ensure the "speedy disbursal" of sanctioned loans by the Higher Education Funding Agency (HEFA).

Details

• The Higher Education Financing Agency (HEFA) was established by the Center in 2017 to raise the country's educational infrastructure to the highest possible standards.

Committee report:

• The government's target of raising Rs 1 lakh crore by 2022 has been missed by the HEFA, which has approved 144 loans totalling Rs 35,000 crore so far.

Government Response:

• The government claim that the Covid-19 epidemic has reduced demand since it forced closures of building projects and prevented educational institutions from starting new initiatives, which led to a miss on the government's objective.

Committee Recommendations

• The Committee recommends the department make serious efforts to sanction additional loans to mobilise resources as much as possible, ensure timely delivery of sanctioned loans, and achieve targets within 2023–2024.

Higher Education Financing Agency (HEFA)

About

• HEFA was founded in May 2017, and is a joint venture between the Union Ministry of Education and Canara Bank, with agreed-upon equity participation in the ratios of 90.91% and 09.09%, respectively.
• as a non-deposit-taking NBFC and as a Union Government entity. Under the Companies Act of 2013, HEFA is registered with the RBI

Vision

• To construct world-class infrastructure, particularly R&D infrastructure, to help India's finest educational institutions succeed and rise to the top of international rankings.

Responsibilities

• To finance the demand, it will mobilise market resources in the form of equity from people and corporations, as well as the issuing of bonds.
• It offers financial help for the development of educational facilities and research and development in India's best educational institutions.
• Encourages scientific and technical advancements by providing funding for R&D facilities to perform high-quality research.
• Channel corporate social responsibility (CSR) contributions and donations for different initiatives aimed at improving higher education.

Significance

• The HEFA financing would replace the present government grant assistance for infrastructure developments in top educational institutions.
• Any educational institutions established/funded by relevant ministries would be eligible for HEFA capital expenditure finance.
• In comparison to the grants system, HEFA would be able to sponsor a broader array of institutions.
• It is possible to quickly build world-class infrastructure so that the nation can benefit more quickly from its demographic dividend.

Keywords

Parliamentary Panel

• A parliamentary panel is a committee that the House has constituted, elected, or nominated. It submits its report to the House or the Speaker and has a secretariat provided by the Lok Sabha Secretariat. 

Corporate Social Responsibility (CSR)

• Corporate Social Responsibility (CSR) is a management concept in which businesses incorporate social and environmental issues into their company operations and relationships with their stakeholders.
• Under the Companies Act of 2013, India became the first country in the world to require CSR expenditure as well as a framework for identifying possible CSR initiatives.

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Nаtiоnаl  Роliсy оn  Eduсаtiоn: https://www.iasgyan.in/blogs/national-education-policy-2020-14

PRACTICE QUESTION Q. Higher education in India has a number of structural problems. India's higher education system is regarded as substandard and structurally weak. Examine the major problems with the higher education system in India. Suggest some ways to make it better.

https://indianexpress.com/article/india/speed-up-disbursal-of-loans-sanctioned-by-hefa-panel-to-education-ministry-8526968/