Lok Sabha Question No. 762 (UNSTARRED), answered on 2018-07-23
Subject: RISE Model
Ministry: HUMAN RESOURCE DEVELOPMENT
Asked by: OM BIRLA

## GOVERNMENT OF INDIA MINISTRY OF HUMAN RESOURCE DEVELOPMENT DEPARTMENT OF HIGHER EDUCATION

## LOK SABHA

## UNSTARRED QUESTION NO. 762 TO BE ANSWERED ON 23.07.2018

## RISE Model

## 762. SHRI OM BIRLA:

## Will the Minister of HUMAN RESOURCE DEVELOPMENT be pleased to state:

(a) the aims, objectives and salient features associated with the Government's Revitalising Infrastructure and System in Education (RISE) model;

(b) the  details  as  to  the  allocation  made  to  the  different  institutions  under  the  model  with special emphasis on the educational institutes of Rajasthan;

(c) whether the Government has earmarked 25% of the fund allocated to the RISE model for the  Indian  Institutes  of  Technology  (IITs)  only  and  if  so,  the  details  thereof  along  with  the reasons therefor;

(d) the details as to mechanism to be followed under the RISE model;

(e) whether the Government acknowledges that there is a need to establish and upgrade the infrastructure  of  the  Universities  which  specializes  in  courses  other  than  engineering  in  the country and if so, the details thereof along with the action taken by the Government to tackle and mitigate such problems therein with special reference to Rajasthan; and

(f) if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF HUMAN RESOURCE DEVELOPMENT

## (DR. SATYA PAL SINGH)

(a)  to  (d):  The  aims,  objectives,  salient  features  and  mechanism  etc  in  respect  of  Revitalising Infrastructure and Systems in Education (RISE)  is given in Annexure.

(e)  &  (f):  The  Government  has  recognized  the  need  for  establishment  and  upgradation  of  the infrastructure of the Central Universities both existing and new, which specialise in courses other than engineering in the country. Suitable models of financing have been designed, based on their age profile and financial capacity, which have also been given in Annexure.

Annexure as referred to in part (a) to (d) of Lok Sabha Unstarred Question No.762 to be answered on 23.07.2018 by Shri OM Birla regarding 'RISE Model'.

'A new Budget announcement at Para 51 of the Finance Minister's Budget speech 201819 was made to step up investments in research and related infrastructure in centrally funded educational  institutions,  including  health  institutions,  to  launch  a  major  initiative  named ''Revitalising Infrastructure and Systems in Education (RISE) by 2022'' with a total investment of Rs.1,00,000 crore in next four years. Higher Education Financing Agency (HEFA) would be suitably structured for funding this initiative.'

2. The Government has approved the proposal of 'RISE by 2022' on 4-7-2018.
3. The  HEFA,  a  not  for  profit  company  established  in  2017,  through  RISE  by  2022 financing  model,  would  service  the  requirements  of  educational  institutions  under  higher education, school education and institutions under the Ministry of Health.  In order to address the requirements of various categories of institutions to be financed, there would be five financing windows as below:
- I. Technical Institutions more than 10 years old: Repay the whole Principal Portion from the internally generated budgetary resources.
- II. Technical  Institutions  started  between  2008  and  2014:  Repay  25%  of  the  principal portion from internal resources, and receive grant for the balance of the Principal portion.

III. Central  Universities  started  prior  to  2014:  Repay  10%  of  the  principal  portion  from internal resources, and receive grant for the balance of the Principal portion.

IV. Newly established Institutions (started after 2014), for funding construction of permanent campuses:  Grant  would  be  provided  for  complete  servicing  of  loan  through  OH-31.  Other Institutions of MHRD with no scope for fee revision or internal resource generation would figure in this category.

V. Other  educational institutions and  grant-in-aid institutions of Ministry of Health: Sponsoring Department/Ministry to give a commitment for complete servicing of the principal and interest by ensuring adequate funds in the OH-31 for the institution.

4. The Institutions in above Windows II/III/IV will have to improve their internal revenue generation  and  shall  repay  the  outstanding  Principal  amount  after  a  period  of  2/3/5  years respectively from the date of completion of project period. HEFA will assess the performance of each institution on a continuing basis and with prior approval of MHRD, fix a moratorium period beyond  which  servicing  of  interest  shall  also  be  taken  over  by  the  institution  in  part  or  full. However,  considering  the  limited  possibility  of  generation  of  internal  revenues  by  some institutions  like  IISERs  and  Central  Universities  etc,  it  is  proposed  that  the  above  provisions would be made applicable only after due joint review by the Department of Higher Education and the Department of Expenditure.
5. In  order  to  enable  the  HEFA  for  raising  the  required  resources,  the  authorised  share capital of Higher Education Financing Agency (HEFA) has been raised to Rs. 10,000 crore from the  existing  Rs.  2,000  crore.  An  additional  Government  equity  of  Rs.  5,000  crore  would  be provided, the actual provision of which would depend on the assessment of requirement of funds and subject to the leveraging and utilisation of funds by HEFA.

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