CHENNAI: Anna University has decided to start a Section 8 company under the name Anna University Strategic Technology Research and Innovation Park (AUSTRIP) to boost its research activities and encourage its students and faculty to venture into entrepreneurship.
Taking a cue from the IIT Madras Research Park, Anna University had proposed to set up AUSTRIP and the proposal was approved by its syndicate in January 2024 and subsequently a policy was chalked out to ensure its smooth functioning.
Recently, designs for the research and innovation park were finalised and work on the project is likely to start soon. Hence, in the recent syndicate meeting, it was decided to register this project as a Section 8 company.
The syndicate has directed the university administration to elaborately discuss starting a Section 8 company, AUSTRIP, with higher education secretary to seek his approval in this regard.
“The move holds immense importance because if AUSTRIP is registered as a not-for-profit company under Section 8 of the Companies Act, 2013, it can function independently and the company’s profits will be reinvested in its growth instead of being utilised by the university.
Adding to it, the central government grants these companies special status, exempting them from some taxes and requirements applicable to other commercial companies,” said a faculty member of the varsity.
He further stated that the IIT Madras Research Park is also an independent Section 8 company promoted by IIT Madras and governed by a board of directors consisting of industrialists and academicians.
“On the same lines, we had also proposed to make AUSTRIP a Section 8 company to avoid any interference in its functioning. Support from industrialists and the academia will aid our students and faculty in starting their own startup ventures. However, the then higher education secretary had not given approval for it. Hence, we proposed the idea again in the syndicate,” said a faculty member.
“The AUSTRIP will also help the ongoing multidisciplinary research work in the university to take the shape of commercial products”, said another faculty member.