NEW DELHI: The Delhi University has set up a not-for-profit company to promote innovation and encourage new startups, Vice Chancellor Yogesh Singh said on Monday. Meanwhile, Section 8 firm will 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,” Singh said.
“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 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.