DU Takes a HEFA Loan of Rs. 950 crore for Infrastructure Expansion

The Delhi University (DU) plans to borrow a loan of Rs. 950 crores from the Higher Education Financing Agency (HEFA). This money will be used to create capital assets and develop infrastructure. Academic blocks will be created with the borrowed money in two areas—Surajmal Vihar and Roshapural.

The varsity has already acquired the land for the blocks a while back. New buildings will be constructed for the faculty of technology, two academic blocks for expanding the Delhi School of Economics, and new girls’ hostel at the Daka complex. Apart from this, the varsity will also be renovating the Gwyer Hall Hostel, Convocation Hall, Art Faculty, Shankar Lal Kall, Tagore Hall, and Jubilee Hostel, among other buildings located on the south campus.

According to the Education Ministry, the HEFA loan will be used for the infrastructure projects of the university, and there won’t be any budgetary support funds allocated. As per the HEFA funding pattern, the loan will be repaid in 10 years in 20 half-yearly installments. The loan comes at a 7% per annum interest rate.

Initially, Delhi University’s finance committee approved a loan request of Rs. 1,045.75 crores. But, after a discussion with the education ministry, the loan amount was reduced to Rs. 950 crores. Apart from this, the varsity has been given Rs. 120 crore for constructing other infrastructure projects under the EWS—Economically Weaker Section scheme.

Many teachers fear that the burden of this loan will fall on the students. DU has already increased its University Development Fees (UDF) by Rs. 300, making it a total of Rs. 900. Also, several categories have been added to the fee structure, including an EWS-supporting university fund and university facilities charges.