The Delhi University (DU) has set up a not-for-profit company to promote innovation and encourage new startups, Vice-Chancellor Yogesh Singh has said. Meanwhile, another Section 8 firm to generate funds for the company is in the final stage, he said.
Section 8 companies are generally those that are set up for charitable objectives and prohibit payment of any dividend to its members, as per the Companies Act, 2013.
"We have set up one company to encourage new startups and innovation in the varsity and we are in search for its CEO. The company will work on incubators and promote innovation," Vice-Chancellor had told PTI earlier this month. "The setting up of a second company for funding is also in the final stage. It will ask for funds from alumni and companies under their CSR activities. It will be an independent company of DU (Delhi University) and will have a professional CEO. The funding will be used for developing the university," he added.
The university is banking on the alumni and corporate social responsibility (CSR) activities of business firms for funding. It has also sought a loan of Rs 1,000 crore from the Higher Education Funding Agency (HEFA) for infrastructure development and creation of capital assets. In its loan proposal to the Ministry of Education, the varsity has said it has been receiving a very limited allocation for the creation of capital assets for the last three to five years and has been unable to purchase lab equipment.
It also said several of its buildings are in a dilapidated state. "We are waiting for the HEFA (Higher Education Financing Agency) loan. Moreover, we are hopeful that these two companies will help in the generation of funds. We are hoping that alumni will contribute and CSR activities of the companies will help in generation of funds," he said. On HEFA loan, VC Yogesh Singh said it is under process and will hopefully be cleared soon.
In March, DU's executive council had approved the seeking of loan of over Rs 1,000 crore. According to the HEFA funding pattern, DU will have to repay the loan in 20 half-yearly installments in 10 years.
(Except for the headline, this story has not been edited by our staff and is published from a syndicated feed.)