Interest-free loans worth Rs 2,000 cr for 6 technology institutes

To encourage research in higher education institutions, the government would provide Rs 2,000 crore interest-free loans to six institutions, Human Resource Development Minister Prakash Javadekar announced on Wednesday.

"Happy to inform that today Higher Education Financing Agency (HEFA) Board would be approving Rs 2,000 crore interest-free loans for six institutions towards research, academic and infra projects," he said in a tweet.

The six institutions which would receive the loan include IIT Kanpur, IIT Delhi, IIT Bombay, IIT Madras, IIT Kharagpur and CSE, National Institute of Technology Karnataka, Surathkal.

The HEFA Board approved projects for Rs 2,066.73 crore for these institutions, with one half of it to be used to develop "research/academic facilities" and the other half for building "supporting infrastructure".

"These institutions can avail of these funds as per the progress of the project and complete them. The funding under HEFA would be in addition to the grants being given to these institutions," said a HRD Ministry statement.

Javadekar called the day "historic", for "financing the needs and promotion of research and innovation beyond budgetary allocations".

"As per the scheme, HEFA would mobilise Rs 20,000 crore through market borrowing and would release the same to the government institution as interest-free loans," said the statement.

The HEFA was registered as a Section-8 company under the Companies Act on May 31, 2017. Canara Bank has been identified as the partner for setting up the company.

--IANS

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