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| HRD Ministry to bring bill for Higher Education Finance Corp |
| Press Trust of India / New Delhi Dec 21, 2009, 13:51 IST |
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A bill will be brought in Parliament for setting up a finance corporation to provide low-interest loans to higher educational institutions.
The HRD Ministry has already prepared a concept note on creation of National Higher Education Finance Corporation (NHEFC). It has started drafting the NHEFC bill, official sources said.
Earlier, the government was undecided whether to set up this body under an act of Parliament or register it under Section 25 of the Companies Act. "It has been decided that the proposed NHEFC will be created by an act of Parliament, not under the Companies Act, 1956," sources said.
As per the HRD Ministry's plan, the proposed NHEFC will be an institutional mechanism to address the investment needs in higher education sector.
The proposed corporation will nurture philanthropic tradition in education by providing loans at concessional rates on interest to such agencies for establishment of higher and vocational institutions in educationally backward areas.
"It will be a NABARD like institution in higher education. It will raise debt by issue or sale of bonds for augmenting resource from the market. It will finance creation of universities. It will grant low-interest loans to philanthropic bodies to come forward in opening institutes," a senior official said.
The step assumes significance as the requirement of funds for expansion of higher education in 2009-10 is expected to be to tune of Rs 60,000 crore.
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