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To Encourage New Startups and Innovation, DU sets up a new company
Vice Chancellor Yogesh Singh announced that Delhi University launched a not-for-profit organization to promote new entrepreneurs and innovation.Earlier this month, he told PTI that two companies are being set up to boost innovation.
by Pragti Sharma / 27 Jul 2022 19:05 PM IST / 0 Comment(s) / 320
Vice Chancellor Yogesh Singh announced that Delhi University launched a not-for-profit organization to promote new entrepreneurs and innovation. He added that till now, another company, a Section 8 corporation to raise money for the first business, is approaching completion. According to the Businesses Act of 2013, Section 8 companies are often launched for philanthropic purposes and prohibit the payment of any dividend to its members.
Earlier this month, Yogesh Singh told PTI that two companies are being set up to boost innovation. One company is to encourage new startups and innovation in the varsity and is searching for its CEO. The company will work on incubators and promotion. The inauguration of a second company for funding is also in the final stage that will request funds from alumni and other companies under their CSR activities. He also said that it will be an independent company of Delhi University with professional CEO. All of the funds will be used for the development of the university.
Delhi University is counting on alums and business enterprises' CSR (Corporate Social Responsibility) activities to gain financial support. As per the reports, DU has also asked for a loan of Rs 1,000 crore from the Higher Education Funding Agency to construct infrastructure and acquire necessary capital assets. Speaking about the loan, Yogesh Singh conveyed that they are hopeful that the two companies will help accumulate funds, and the HEFA loan is being processed and should be approved soon. He further said they are hoping that alums will contribute, and the CSR activities of the companies will also support them financially.
The Delhi University's Executive Council approved the request for a loan of more than Rs 1,000 crore from HEFA in March. Following the HEFA funding pattern, Delhi University will have to pay back the loan in 20 half-yearly installments over a period of ten years.
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