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Centre approves Rs 2,000 cr interest-free loan to five IITs, NIT Suratkal

The institutions are IIT Bombay, Delhi, Madras, Kharagpur, Kanpur and NIT Suratkal

Press Trust of India  |  New Delhi 

IIT Kharagpur Photo: Facebook
IIT Kharagpur Photo: Facebook

The central government's (HEFA) on Wednesday approved an of over Rs 2,000 crore for research projects proposed by five and a

"Board approves Rs 2,066.73 cr to 6 institutions. Today is a historic day for financing needs & promotion of #research & #innovation beyond budgetary allocations," Union HRD Minister tweeted.

The institutions are IIT Bombay, Delhi, Madras, Kharagpur, Kanpur and Suratkal.

"While Rs 1028.73 crore has been sanctioned for research and academic facilities, Rs 1,038 crore has been approved for other supporting infrastructure," a senior HRD ministry official said.

The Union Cabinet had approved in September last year as a special purpose vehicle with Canara Bank. It would be jointly funded by the promoter/bank and HRD ministry.

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 would be in addition to the grants already given to the institutions," the official said.

According to the scheme, would mobilise Rs 20,000 crore through market borrowing and would release the money to as interest-free loans.

First Published: Wed, November 29 2017. 19:09 IST