Sonam Rana updated Content Curator updated
Content Curator updated
New Delhi: Delhi University, DU is all set to establish two firms to raise funding from the university's alumni to promote innovation.
Delhi University Vice-Chancellor Yogesh Singh announced the establishment of two not-for-profit companies that will seek funds from its alumni and promote innovation. With the university entering its centenary year, some policy reforms should be set up.
According to the latest reports, Singh said that in order to make DU a better place, some policy reforms should be introduced. To make the university a happening place, the varsity has made some investments and sought a loan from HEFA.
Earlier, last month, the Executive Council of DU approved a loan of over INR 1,000 crore from the Higher Education Funding Agency (HEFA) to develop the infrastructure and create the capital assets.
Further, he said that the university is constituting a Section 8 company to generate funds for the company. The Section 8 company will seek funds from alumni and from companies under their CSR activities.
The section 8 company will be an independent company of DU and will have a professional CEO, and the funding received shall be used for the development of the university, Singh said.
He said that the second company will plan and look into the matters related to the incubators and promote innovation. The forms for the companies will be submitted shortly, and after the approval, the varsity will publish a recruitment advertisement for the posts of CEOs for the two companies.
VC also proposed an idea of organising a 'financial mela,' in accordance to a 'job mela,' to raise funds. According to the Companies Act of 2013, the Section 8 companies are generally those that are constituted for the purpose of charity, who prohibit themselves from paying dividends to their shareholders.
The university received the HEFA loan for the infrastructure development and creation of capital assets. According to the HEFA funding pattern, the university will have to repay the loan in 20 half-yearly instalments within 10 years.
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