May 11: Union human resources development ministry’s plan to establish a National Higher Education Funding Corporation, to fulfil UPA government’s agenda to provide accessibility to
education to the underprivileged, is soon likely to be put into action. Speaking exclusively to this paper, Union HRD minister Kapil Sibal stated that the proposal which has been pending for several months may soon be given a go-ahead.
“The government plans to set up two separate entities within the corporation. One dealing with education loan guarantees for students while the other providing financial support to the educational institutions requiring loans,” Mr Sibal stated.
The minister stated that the creation of two separate entities within one organisation for loans to the educational sector comes after the Planning Commission suggested this change to the HRD ministry.
The creation of the National Higher Education Funding Corporation is expected to provide much-needed relief to the education sector which is facing a funds shortage both at the student and institutional level.
Through the establishment of this corporation the government aims to provide subsidised loans to students pursuing recognised professional courses. The government also wants the corporation to be in position for the expansion of universities, technical institutes and higher education.
According to HRD ministry estimates the requirement of funds for the education sector could grow to as high as Rs 1.55 lakh crore in 2016-17. Currently the requirement stands at approximately Rs 60,000 crore. Through the corporation the government wants to ensure lendable funds of an estimated Rs 38,000 crore by next year and Rs 1 lakh crore by 2016-17. This paper was the first to report on November 8 last year that Mr Sibal had written a letter to Dr Montek Singh Ahluwalia for the establishment of this corporation.