Centre approves Rs 2,000 crore interest-free loans to five IITs, one NIT
The interest-free loans of over Rs 2,000 crore will fund research projects proposed by five IITs and an NIT.education Updated: Nov 30, 2017 07:32 IST
To encourage research in higher education institutions, the government has approved Rs 2,000 crore interest-free loans to six institutions, including five IITs.
The central government’s Higher Education Financing Agency (HEFA) on Wednesday approved interest-free loans for research projects proposed by five Indian Institutes of Technology and National Institute of Technology, Suratkal.
“Today is a historic day for financing the needs and promotion of research and innovation beyond budgetary allocations. The Budget gives ample allocation and grants to Higher Education institutions but still there is a greater need,” human resource development minister Prakash Javadekar said.
“While Rs 1,028.73 crore has been sanctioned for research and academic facilities, Rs 1,038 crore has been approved for supporting infrastructure,” a senior ministry official said.
The Union Cabinet had approved HEFA in September last year as a special purpose vehicle with Canara Bank. It is jointly funded by the promoter/bank and HRD ministry.
These funds are in addition to the grants that government gives to these institutions. According to the scheme, HEFA would mobilise Rs 20,000 crore through market borrowing and would release the same to the government institution as interest-free loans.
According to the funding mechanism, an institution can claim 10 times the sum it escrows in the first year. “Approved institutions can avail the sanctioned amount as per the progress of the project and complete them expeditiously. The funding under HEFA would be in addition to the grants already given to the institutions,” the official said.
First Published: Nov 29, 2017 19:18 IST