Delhi University's Executive Council on Thursday approved the sanctioning of Rs 1 crore every year with an annual increment of five per cent for sustaining the activities of a not-for-profit company formed to promote innovation and encourage new startups.
The DU has constituted a company -- Udhmodya Foundation -- for fostering innovations, entrepreneurship and startup culture at the varsity.
The sum will be furnished from the University Development Fund (UDF) to start the activities as envisaged in the Memorandum of Association (MoA) of the company, a senior varsity official said.
Out of the funds provided, 60 per cent will be spent on incubation activities and at most 40 per cent will be used for administrative activities, including salary, the official added.
"The Executive Council has approved the recommendation of the Board of Directors of Udhmodya Foundation, (meeting held on 5 July 2022, regarding sanction of Rs 1 crore) every year with an annual increment of five per cent for sustaining the activities of Udhmodya Foundation," DU Registrar Vikas Gupta said.
DU Vice-Chancellor Yogesh Singh earlier announced the setting up of two companies in the varsity.
Besides Udhmodya Foundation, the VC said that they are also creating a Section 8 company for generating funds for the university.
“The Section 8 company will ask for funds from alumni and from 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 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.