About Us

OVERVIEW

Higher Education Financing Agency (HEFA) is a joint venture of MHRD Government of India and Canara Bank for financing creation of capital assets in premier educational institutions in India as part of rising 2022 HEFA’s scope is greatly expanded to cover school education, educational institutes under Ministry of health etc.

 

HEFA is registered under Section 8 [ Not-for-profit] under the Companies Act 2013 as a Union Govt company and as Non–deposit taking NBFC (NBFC-ND-Type II) with RBI.

 

HEFA incorporated on 31st May 2017, is a joint venture of Ministry of HRD, GOI and Canara Bank with an agreed equity participation in the ratio of 91% and 9% respectively.

 

Ours is a journey towards developing India’s top-ranked institutions like IIT’s, IIIT’s, NIT’s, IISCs, AIIMS into Globally top ranking institutions through improvement in their academic and infrastructure quality. We are particularly interested in financing the building of educational infrastructure, R&D infrastructure and thereby enabling the institutions to reach top rankings globally.

VISION/MISSION

s

VISION

To enable India’s premier educational institutions to excel and reach the top in global rankings by financing building world class infrastructure including R&D Infra.

ss

MISSION

To provide timely finance at competitive interest rates for capital assets creation in India’s educational institutions and supplement it with grants by channelizing CSR funds from the corporate and donations from others.

OUR STORY

India’s premier educational institutions with high level of intellectual capital needs to be supported by adequate infrastructure.

 

We need to channelize their capabilities into meaningful research and innovation. Presently there is no Indian institution in global top 100 rankings.

 

To revitalize infrastructure and systems in higher education, their needs to be new investments in research and related infrastructure.

 

HEFA is established by GoI after taking note of all the above facts through a Budget announcement in 2016-17 that “We have decided to set up a Higher Education Financing Agency (HEFA). The HEFA will be a not-for- profit organisation that will leverage funds from the market and supplement them with donations and CSR funds. These funds will be used to finance improvement in infrastructure in our top institutions and will be serviced through internal accruals.”

 

HEFA would incentivise better internal resource generation and at the same time allow substantial investments through market borrowings that can be repaid over a longer period.

 

RISE 2022

 

“Revitalising Infrastructure and Systems in Education (RISE) by 2022”, is a major initiative launched by GOI in the FY 2018-19 budget.

 

HEFA’s scope under RISE has been greatly expanded from initial objective of financing infrastructural needs of select Higher Educational Institutions in India to the extent of Rs. 20,000 crores. It is proposed to accelerate the investment in these institutions to Rs.1,00,000 crores over the next 4 years as under

 

Number Amount
(Rs in cr)
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
New IITs 6 10000 2000 3000 4000 1000
1st Gen IITs renewal 9 9000 3000 4000 2000
2nd Gen IITs 8 6000 2500 2500 1000
IoE 10 10000 1000 3000 4000 2000
NITs new 1 1300 500 500 300
NITs 2gn 10 6000 2000 3000 1000
NITs 1st Gen 20 4000 1000 1500 1500
Central Universities (new) 10 10000 1000 3000 4000 2000
Central Universities (old) renewal 25 10000 2000 3000 4000 1000
IISERs 5 5000 1500 2500 1000
IIMs new 6 4500 1500 2000 1000
IIIT (PPP) 20 3000 500 1500 1000
IIITs Govt 4 2000 500 1000 500
Languages institutes 5 1000 200 500 300
Other institutions CFIs 10 1700 500 500 700 500
SPAs 3 5500 1000 1500 2500 250
School Education 1000 250 250 250 250
Health Infrastructure 20 6000 1000 2000 2000 1000
Research promotion 4000 500 1000 1000 1500
TOTAL 100000 22450 36250 32050 9250

BUDGET ANNOUNCEMENT

Finance Minister in the Budget speech of 2016-17 announced that:

 

“We have decided to set up a Higher Education Financing Agency (HEFA) with an initial capital base of Rs.2,000 crores. The HEFA will be a not-for- profit organisation that will leverage funds from the market and supplement them with donations and CSR funds.These funds will be used to finance improvement in infrastructure in our top institutions and will be serviced through internal accruals.”

HEFA’s role is hugely expanded to cover all educational institutions under higher education, school education and institutions under Ministry of Health.

 

The equity contribution is proposed to increase to Rs.10,000 crore and the balance requirement of Rs. 90,000 crore will be raised by HEFA through market borrowings and issue of bonds including government guaranteed/government serviced bonds.

 

In order to address the requirement of various categories of institutions to be financed, there would be five financing windows as below;

Category of Institution

Repayment of Principal

Interest Servicing

Technical Institutions established By Institution By GOI By Institution By Govt
Before 2008 100% - - 100%
2008 to 2014 25% 75% - 100%
Central Universities before 2014 10% 90% - 100%
Newly Established after 2014-15 - 100% - 100%
Other institutions and grant-in-aid institutions of Ministry of Health - 100% - 100%

OUR PROMOTERS

MHRD – GoI

Ministry of HRD, GoI looking after all higher education in India.

CANARA BANK

HEFA is Managed by Canara Bank which has over 110 years of banking experience.

BOARD OF DIRECTORS

R Subrahmanyam
R Subrahmanyam
Secretary , Ministry of HRD, GOI   –  Chairman
P V Bharathi
P V Bharathi
Executive Director, Canara Bank – Vice Chair Person
Dr Ashok Misra
Dr Ashok Misra
Independent Director
Dr Bhaskar Ramamurthi
Dr Bhaskar Ramamurthi
Director, IIT Madras – Director
Dr Virander Singh Chauhan
Dr Virander Singh Chauhan
UGC Member  – Independent Director
Dr Rishikesha Thiruvenkata Krishnan
Dr Rishikesha Thiruvenkata Krishnan
Director IIM Indore – Director
Mr.Govardhan
Govardhan Umajirao
Managing Director & CEO
Darshana M Dabral
Joint Secretary, Financial Advisor, MHRD GoI
Preeti Sudan
Secretary, Ministry of Health Family Welfare

MANAGEMENT TEAM

Untitled-2
Anand Kumar
Executive Vice President
anand kumar
D K Srinivasa Murthy
Senior Vice President
midhun
Midhun Noble
Asst Vice President

INSTITUTIONS WE SUPPORT