DU officials raise concerns over HEFA loans for hostel expansion plan

Faculty members and officials at Delhi University have raised concerns over the proposed use of loans from the Higher Education Financing Agency (HEFA) to fund hostel construction, arguing that the repayment burden could eventually fall on students through higher fees.

The concerns follow the university’s Executive Council (EC) approval of a Rs 5,889-crore proposal to expand residential facilities for 21,895 students by building new hostels and reconstructing two existing ones.

At an emergent meeting of the Executive Council, EC member Rajpal Singh Pawar supported expanding hostel accommodation but opposed financing the projects through HEFA loans. He demanded that Rs 1,250 crore be the starting amount, after which efforts should be made to raise funds for hostels in colleges and universities.

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An EC member said Pawar insisted on financing the projects through government grants-in-aid rather than loans. Afterwards, the EC agreed to secure government grants, according to a communication shared by faculty members.

“The university administration also reportedly flagged concerns over repayment of HEFA loans during the meeting,” the member said.

Earlier, at the Finance Committee meeting, committee member J L Gupta submitted observations on the building committee’s recommendations for hostel construction and called for open competitive tendering for the proposed projects.

Gupta welcomed the expansion of hostel accommodation but sought safeguards for financial and administrative oversight, noting that the projects involved substantial public funds. Rudrashish Chakraborty, an associate professor of English at Kirori Mal College, also criticised the proposed reliance on HEFA loans, arguing that repaying the principal and interest could place a financial burden on future generations of students.

He said grants-in-aid, a funding mechanism the University Grants Commission has used since 1956, offered an alternative for financing hostel infrastructure without shifting the repayment burden to students.

Chakraborty also linked the urgency behind the hostel expansion proposal to the Satya Niketan building collapse on September 6, which brought student accommodation and safety concerns into focus. Seven people died in the incident in southeast Delhi.

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Under the Rs 5,889-crore plan approved by the EC, new hostels will be built at an estimated cost of Rs 4,027 crore, providing accommodation for 15,758 students. Reconstructing Jubilee Hall and the PG Men’s Hostel will cost Rs 1,862 crore and accommodate another 6,137 students.

Under the EC-approved Rs 5,889-crore plan, building new hostels will cost an estimated Rs 4,027 crore and provide accommodation for 15,758 students. Reconstructing Jubilee Hall and the PG Men’s Hostel will cost Rs 1,862 crore and accommodate another 6,137 students.

The proposed facilities will be located at multiple sites, including the university’s Dhaka Complex, Surajmal Vihar campus, Najafgarh campus, and West Campus in Dwarka.