Current Affairs

RISE Scheme: IITs to Get 25% of Government Loans

Revitalising Infrastructure and Systems in Education (RISE) scheme announced in this year's budget has been launched under which the Indian Institute of Technology will get 25%  loans on offer under the new funding model.

RISE Scheme: IITs to Get 25% of Government Loans

Funding

  • Under this scheme, ll centrally-funded institutes (CFIs), including central universities, IITs, IIMs, NITs and IISERs, can borrow from a Rs 1,00,000 crore corpus over the next four years to expand and build new infrastructure. A quarter of this amount — Rs 25,000 crore — will be set aside exclusively for the 23 IITs.
  •  20,000 crore, will be secured for central universities. 
  • While the National Institutes of Technology (NITs) can borrow up to Rs 11,300 crore, the new IIMs will get Rs 4,500 crore, and five IISERs Rs 5,000 crore.
  • Rs 9,000 crore will be available for building robust research ecosystems, like world-class laboratories, in CFIs.
  • All financing for infrastructure development at CFIs will be done through the Higher Education Funding Agency (HEFA), which was set up by the government as a Section 8 company last year to mobilise funds from the market and offer 10-year loans to centrally-run institutes.

Implementation

  • All financing for infrastructure development at CFIs will be done through the Higher Education Funding Agency (HEFA), which was set up by the government as a Section 8 company last year to mobilise funds from the market and offer 10-year loans to centrally-run institutes.
  • All the infrastructure and research projects sanctioned by HEFA are to be completed by December 2022. Funding agency will release money directly to the vendors or contractors on certification by the executing agency and the educational institute.

Repayment

  • Loans taken from HEFA, under the RISE programme, must be paid back over 10 years. There will be different modes of loan repayment for different institutes, based on their internal revenue. 
  • Central universities set up before 2014 will be eligible to borrow through the 90:10 window, which means that they will have to repay 10 per cent of the principal amount from their internal resources. The remaining principal amount and the interest accrued on the loan will be paid by the government to HEFA.
  • IITs and IIMs which are over a decade old will repay the whole principal amount over 10 years, and the interest will be paid by the government. Technical institutes set up between 2008 and 2014 can avail loans through the 75:25 window. In other words, they will have to give 25 per cent of the principal amount. The balance principal and loan interest will be taken care of by the central government.

Expected Questions

What does RISE scheme stand for?
a. Rejuvenating Infrastructure and Systems in Education
b. Revitalising Infrastructure and Systems in Education
c. Rekindling Infrastructure and Systems in Education
d. Regenerate Infrastructure and Systems in Education

Under RISE Scheme, the All financing for infrastructure development at CFIs will be done through the
a. Higher Education Funding Agency
b. Department of Education
c. Ministry of Finance
d. NITI Ayog

Loans taken from HEFA, under the RISE programme, must be paid back over 
a.  5 years
b. 15 years
c. 10 years
d. 20 years
RISE Scheme: IITs to Get 25% of Government Loans RISE Scheme: IITs to Get 25% of Government Loans Reviewed by insiya yadav on February 27, 2018 Rating: 5

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