- HEFA is aimed at boosting institutional infrastructure
- Especially state-of-the-art laboratories, in key institutions such as the Indian Institutes of Technology, the Indian Institutes of Management, and the Indian Institutes of Information Technology
- All centrally funded higher educational institutions would be eligible for joining as members of the HEFA
- Under the existent financing mechanism of HEFA, an institution can claim for a project 10 times the sum it escrows in the first year
- The institution should agree to escrow a specific amount from their internal accruals to HEFA for a period of 10 years
- If an institution escrows ₹10-crore, it can get approval for a ₹100-crore project. It has to escrow ₹10-crore each year for 10 years, which will take care of the principal amount
- HEFA was approved by the Union Cabinet as a Special Purpose Vehicle with a public sector bank (Canara Bank) in September 2016
- HEFA would be jointly promoted by the SPV and the Ministry of Human Resource Development with an authorised capital of ₹2,000 crore, out of which the Government’s equity would be ₹1,000 crore
- It would leverage the equity to raise up to ₹20,000 crore for funding projects
