IITs are all set to get a huge amount of loans under the government's new funding loan 'Revitalising Infrastructure and Systems in Education for institutes run by the Centre.
The Indian Institutes of Technology (IITs) are all set to get a huge amount of loans under the government’s new funding loan ”Revitalising Infrastructure and Systems in Education (RISE)” for institutes run by the Centre. The scheme, contours of which were outlined in the Union Budget earlier this month, provides for all centrally-funded institutes like central universities, IIMs, IITs, IISERs and NITs to borrow from a Rs 1,00,000 crore corpus in next next four years with an aim improve their infrastructure.
In a big boost to the IITs, it has been learnt that a quarter of the amount, Rs 25,000 crore, will be kept aside for these institutes. Another share of Rs 20,000 crore will be kept for central universities. Even as National Institutes of Technology (NITs) can borrow up to Rs 11,300 crore, IIMs will get the share of Rs 4,500 crore, and five IISERs are expected to get Rs 5,000 crore. Apart from these amounts, Rs 9,000 crore will be available to build research ecosystems, like world-class laboratories in CFIs.
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After the RISE scheme is introduced, the CFIs will take care of Higher Education Funding Agency (HEFA), that was set up by the government last year in order to mobilise funds from the market and offer 10-year loans to institutes by the Centre.
Till 2017, CFIs was getting fixed Budget amount of Rs 10,000 crore every year for the purpose. The latest shift would help institutes to get more funds, better accountability and projects are alos likely to be completed on time. HEFA, to mobile Rs 1,00,000 crore funds, will require an equity of Rs 10,000 crore, from which government will provide Rs 8,500 crore. Canara bank will provide the remaining equity. It had earlier partnered with the government to set up HEFA, and other corporations. Soon, the HRD Ministry is likely to seek the Centre’s clearance for government’s share of the HEFA equity.
All research projects of HEFA are expected to be finished by December 2022. As per reports, agency will provide money to vendors or contractors directly on certification by the executing agency and the educational institute. All loans, taken from HEFA, under the programme, has to be paid back by 10 years. For different institutes, there will be different modes of loan repayment based on internal revenue.