What does HEFA stand for, in the context of education?

a. Higher Education Financing Agency

b. Higher Energy Financing Agency

c. Higher Education Financial Association

d. None of the above

ANSWER: Higher Education Financing Agency

Explanation:

Union Cabinet on 12th Sept 2016 approved the creation of HEFA or Higher Education Financing Agency.

HEFA will be established to provide a major push for creation of quality infrastructure in premier educational institutions.

HEFA will be jointly promoted by Identified Promoter and MHRD

It has an authorised capital of INR 2000 crore

Government equity will be INR 1000 crore rupees.

HEFA will be formed as an SPV within a PSU Bank/Government owned NBFC

It will leverage the equity to rise up to INR 20000 crore rupees for funding projects for infrastructure and development of world class labs in IITs/IIMs/NITs and other such institutions

It will also mobilise CSR funds from PSUs/Corporates in turn to be released for promoting research and innovation on grant basis in these institutions

HEFA will finance the civil and lab infrastructure projects through a 10 year on

Centrally Funded Higher Educational Institutions will join HEFA as embers

For joining as members, institutions need to escrow specific amount from internal accruals to HEFA for 10 years

Secured future flows will be securitised by the HEFA for mobilising the funds from the market.

Each member institution will be eligible for credit limit as per HEFA based on amount agreed to be escrowed from internal accruals