DU's annual report 2025-26 shows HEFA loan at Rs 161 crore; teachers question funding model

The University of Delhi (DU) teachers have raised concerns over the university’s growing dependence on the Higher Education Financing Agency (HEFA) loans and have flagged that the borrowing could push the institution towards commercialisation and eventually privatisation.

According to the university’s 103rd annual report, as at 31 March 2026, the teachers said DU’s unsecured HEFA loan stands at a total payable amount of Rs 161.37 crore. The figure comprises an opening balance of Rs 46.93 crore, fresh releases of ₹109.63 crore during the fiscal year and accrued interest of Rs 4.80 crore.

“This reliance on debt financing is not merely a temporary liquidity measure, but a structural trend that fundamentally threatens DU’s public character,” the DU teachers said in its report adding that an institution with a debt-dominated balance sheet will tend to prioritise servicing its loans over teaching and research.

“When an academic institution’s balance sheet becomes dominated by de facto market borrowing, its institutional priorities will shift from pedagogical and research endeavours to debt-servicing,” DU report adds.

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DU teachers question funding model

Teachers of DU have pointed to the repayment structure, under which the education ministry (MoE) bears 90% of the principal repayment amounting to Rs 28.35 crore for this fiscal year, while DU must refund the remaining 10% (Rs 3.15 crore) from its internal receipts.

Teachers have pointed out that due to this debt, “DU administration is structurally compelled, or willing, to prioritise aggressive revenue generation,” leading to rise of student fees, “commercial exploitation” of university land, expansion of self-financing courses and neglecting educational infrastructure, which they said would exclude students from deprived sections.

Furthermore, the teachers have also questioned the creation ‘repayment of HEFA Loan account’ with Canara Bank, which held current balance of Rs 2.88 crore for principal repayment. According to them, such arrangements dilutes the university’s autonomy.

“By carving out specific financial nodes to satisfy commercial banks, DU subjects its treasury management to external, profit-driven oversight, thereby ceding a degree of financial autonomy to external corporate entities,” the DU report said.

Grant for repayment of HEFA loan

“The intricate web of grant utilisation further exposes the precariousness of the government’s engagement, masking the slide towards privatisation,” DU report adds.

The report highlighted that DU received Rs 3.19 crore for HEFA interest repayment against interest of Rs 4.80 crore, leaving a gap of Rs 1.61 crore.

“The government is effectively underwriting the commercial borrowing process, but only partially, leaving DU to bridge the gaps through its own commercial ventures that are undermining its public character,” the report added.

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‘Paradox’: Unutilised grant of Rs 20.66 crore

The teachers have also flagged what they called a ‘paradox’. Despite the debt, the balance sheet shows unutilised grants of Rs 20.66 crore, including an unspent grant from the Ministry of Minority Affairs. However, because such grants are “ring-fenced” and cannot be used for HEFA repayments, the university must borrow for general capital needs while holding unused government funds.

“This fragmented funding model is impelling the administration of DU to lean further into the debt market,” it said.

DU’s account for 2025-26 shows that HEFA loans are changing how the university functions. The university has to now repay loans, find 10% of the money from its own earnings, and keep a separate account for lenders, which is turning DU into a business-like institution, while it should remain a public university. DU teachers demand that all its expenditure be financed by grants from the government.