Centre-Canara Bank to raise Rs 20,000 cr to give loans to IITs, IIMs

The financing model is such that the Centre will pay interest on the amount borrowed by the institutes

The human resource development ministry and Canara Bank have set up an agency to fund creation of infrastructure and research facilities at higher education institutes.

The government said the Higher Education Financing Agency (HEFA) has been authorised to raise up to Rs 20,000 crore to give loans for specific needs of the Indian Institutes of Management (IIMs), Indian Institutes of Technology (IITs), Indian Institutes of Science Education and Research (IISERs) and the National Institutes of Technology (NITs).

The joint venture between the Centre and Canara Bank was set up with an authorised capital of Rs 2,000 crore. The Centre has put Rs