Higher Education Financing Agency (HEFA)

Why in news?

• HEFA has fallen short of the government’s target of mobilizing Rs 1 Lakh crore by 2022

About Higher Education Financing Agency (HEFA):

• HEFA was set up by the Centre in 2017 to upgrade the education infrastructure in the higher education institutions under the Government of India.
• It has sanctioned 144 loans worth Rs 35,000 crore so far, falling short of the government’s target of mobilising Rs 1 lakh crore by 2022
• HEFA, which was set up as a non-profit Non-Banking Financing Company (NBFC), is a joint venture between the Union Ministry of Education and the Canara Bank to finance infrastructure development in educational institutions through long-term loans.
• While the premium is paid by the institute, interest is paid by the government.
• The government expanded the scope of HEFA in 2018 under the Revitalizing Infrastructure and Systems in Education or RISE by 2022 initiative, bringing schools and medical colleges under its ambit, and making it the nodal body in infrastructure financing in the education sector.

PRACTICE QUESTION:

Consider the following statements regarding ‘Higher Education Financing Agency (HEFA)’:

1. It is set up as a non-profit Non-Banking Financing Company

2. It aims to finance infrastructure development in educational institutions through long-term loans.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer