New Delhi: On Friday i.e. March 5, 2010, Government of India has made the announcement that no decision has yet been taken to set up the National Higher Education Finance Corporation (NHEFC). The proposed Corporation is aimed at facilitating financial assistance for new educational institutions in the country.
Human Resource Development (HRD) Minister Kapil Sibal, during a question hour in Rajya Sabha, has said that decision has been taken yet on setting up a National Higher Education Finance Corporation. A proposal for the establishment of NHEFC is under consideration. He also emphasized the fact that at present, there is an urgent need of finance in the education sector. Further, he added that the objective of the Bill to set up the corporation was to improve the gross enrolment ratio (GER) in the country, from 12 per cent at present, to 30 per cent by 2020.
Mr Sibal mentioned that the establishment of NHEFC aims at providing loans for infrastructure development and expansion of educational institutions, as well as refinance facility for educational student loans. The purpose is to ensure that anyone wanting to set up an educational institution has free access to finance at priority sector lending rates. He also stated that that the Government was moving forward in the direction of the proposal and also expressed the hope that the government would take a decision in favor of the proposal.
