Delhi University proposes to take loan of over Rs 1,000 crore from HEFA

NEW DELHI: The Delhi University is mulling over taking a loan of over Rs 1,000 crore from the Higher Education Funding Agency (HEFA) for infrastructure development and creation of capital assets, according to official documents. A proposal on the loan from HEFA will come up for discussion in the university Executive Council meeting on March 25.

According to the agenda of the meeting, the university is planning to submit a proposal of Rs 1,075.40 crore to HEFA for infrastructure development and creation of capital assets. According to the HEFA funding pattern, the university will have to repay the loan in 20 half-yearly installments in 10 years. The university said it has been receiving a very limited allocation for creation of capital assets for the last three to five years and has been unable to purchase lab equipment. It also cited the condition of buildings that are in a dilapidated state.

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The Education Ministry has already said that major infrastructure projects will be funded through HEFA only and no funds will be released as budgetary support. A teachers' body, the Academics For Action and Development (AAD), said that seeking loan from HEFA will lead to a steep fee hike in future.

"AAD strongly opposes the proposal of taking the loan of around Rs 1,000 crore from HEFA for infrastructure development. This is shifting from grant based to loan based education which will lead to steep hike in fees. The Executive Council members of AAD will resist this proposal in the forthcoming EC meeting as the students from SC, ST, OBC, PwD will be adversely affected," it said.