Press Trust of India|Dec 1, 2023
Delhi University: Proposal for DU to sanction Rs 50 lakh per year towards its non-profit
Delhi University (DU) will provide the funds for the company from the University Development Fund, which is collected from student fees.
NEW DELHI: Delhi University is likely to sanction Rs 50 lakh per year for the first three years, with an annual increment of five percent, towards its new company, the University of Delhi Foundation, according to a proposal submitted in the DU Executive Council. The EC is set to meet on April 10, 2023.
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The University of Delhi Foundation, erstwhile Friends of DU, is a non-profit company set up by the university in 2022 to manage the DU Endowment Fund, enter into agreements with government and private bodies, purchase and sell properties, and release scholarships for needy students.
The foundation will use 60 percent of the sanctioned funds towards its objectives and 40 percent of the funds towards administrative activities such as salaries.
“Pursuant to the resolution of the Board of Directors' meeting of the Foundation, held on August 25, 2022, regarding the funds for the Company, the Company should request the University of Delhi to sanction Rs Fifty Lakhs per annum initially for a period of three years with an annual increment of 5% for sustaining the activities of Friends of DU Foundation,” the minutes for the Executive Council meeting held on February 3 said.
DU will provide the funds for the University of Delhi Foundation from the University Development Fund, which is collected from students. Earlier, the university had passed a proposal to increase the student contribution to the University Development Fund by Rs 300. Students will now have to pay Rs 900 instead of Rs 600 as was the case earlier.
All shares held by DU VC
The University of Delhi Foundation will be responsible for managing, monitoring and even investing the funds collected from the DU endowment fund. The company can also apply for funds and grants from the government, public companies, private companies, corporations, etc. It can enter into agreements with institutions, companies or corporations within or outside India. The company can also purchase or take on lease any land or build buildings as it deems fit. However, the company cannot sell, lease or transfer any of its assets “without prior written consent from University of Delhi”.
Almost all of the company shares will be held by the DU Vice Chancellor.
The initiative to form such a company for income generation had met with criticism from teachers who said that this will lead to the commercialisation of the university. Teachers also said that such a move will let the administration bypass the elected bodies such as the Academic Council and the Executive Council.
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