Explanation:

It aims to fund projects for infrastructure and development of world class Labs in IITs/IIMs/NITs and such other institutions.
•    The HEFA would be jointly promoted by the identified promoter and the Ministry of Human Resource Development (MHRD) with an authorised capital of Rs 2,000 crore. The HEFA would be formed as a SPV within a PSU Bank or Government-owned-NBFC (Promoter).
•    The HEFA would finance the civil and lab infrastructure projects through a 10-year loan
•     The secured future flows would be securitised by the HEFA for mobilising the funds from the market. The HEFA would also mobilise CSR funds from PSUs or corporates, which would in turn be released for promoting research and innovation in these institutions on grant basis.

The HEFA was registered as a Section – 8 Company under the Companies Act on 31st May 2017. Canara Bank has been identified as the partner for setting up the Company. Government has released Rs. 250 Cr equity and the Canara Bank has given Rs. 50 Cr equity in the HEFA. RBI has granted a license under the RBI Act for HEFA to operate as NBFC on 21st November 2017 and to leverage the equity to mobilise money from market as per the requirements of the institutions.