New Delhi: According to Vice-Chancellor Yogesh Singh, the Delhi University (DU) has established a not-for-profit business to foster innovation and support new entrepreneurs. He added that another Section 8 corporation to raise money for the business is nearing completion.
As per the Businesses Act of 2013, Section 8 companies are often those that are established for philanthropic purposes and forbid payment of any dividend to its members.
"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 the media 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.
For financial support, the institution is relying on alumni and business corporations' corporate social responsibility (CSR) initiatives. Additionally, it has asked the Higher Education Funding Agency (HEFA) for a loan of Rs 1,000 crore so that it can build infrastructure and acquire capital assets.
The university claimed in its loan proposal to the Ministry of Education that it has not been able to purchase lab equipment since it has only received a relatively small allocation for the development of capital assets over the previous three to five years.
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.
The executive council of DU gave its approval in March to the request for a loan of more than Rs 1,000 crore. DU will have to pay back the loan in 20 half-yearly instalments over the course of 10 years in accordance with the HEFA funding pattern.
