The objective of Indian Government behind the setting up of HEFA (Higher Education Finance Agency) is to provide financial support for

HEFA (Higher Education Finance Agency) 

• The Higher Education Financing Agency (HEFA) is a collaborative effort between the MHRD Government of India and Canara Bank (equity participation in the ratio of 91% and 9% respectively) to fund capital resources development in premier educational institutions of the country.
• It was incorporated on 31st May 2017.
• The primary objective of  HEFA is to leverage funds from the market and provide low-interest loans to universities for infrastructure and R&D.
•  Higher Education Financing Agency (HEFA) to give a major push for the creation of high-quality infrastructure in premier educational institutions like the development of world-class Labs  IITs/IIMs/NITs/AIIMSand such other institutions.
• Basically, HEFA is a non-banking finance company set up by the MHRD to extend infrastructure loans to public educational institutions.
• HEFA is registered under Section 8 [ Not-for-profit] under the Companies Act 2013 as a Union Govt company and as Non–deposit-taking NBFC-ND with RBI.
• Government of India allotted to HEFA Rs 2,200 Crore In the financial year 2020-21.
• HEFA’s scope has been expanded to cover school education, educational institutes under the Ministry of Health, etc.

Thus, option 1 is the correct answer.