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DU approves Rs. 1 crore budget for Udhmodya Foundation

The Executive Council of DU on Thursday approved the authorization of Rs 1 crore annually with a 5% annual increase for supporting the operations of Udhmodya Foundation, a not-for-profit corporation established to foster innovation and support new start-up companies. 

Udhmodya Foundation is a non-profit company established by the university to facilitate and promote innovation, entrepreneurship and startup culture at the varsity. According to the officials out of the one crore, 60% of the funding would be used for incubation activities and no more than 40% will go towards salary and other administrative costs. 

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,”  

Dr Vikas Gupta, DU registrar

According to a senior university official, the money will come from the University Development Fund (UDF) to start the activities as planned in the company’s Memorandum of Association (MOA). 

Yogesh Singh, Vice Chancellor of the university, has already announced the formation of two more enterprises. The VC stated that in addition to the Udhmodya Foundation, a Section 8 corporation is being established to raise money for the university. 

The Section 8 company 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,”  

Yogesh Singh, DU VC

Section 8 companies, according to the Businesses Act of 2013 are often those enterprises that are established for philanthropic purposes and forbid the payment of any dividend to its members. 

Read also: The Pandemic B-Plan: A Wave of Entrepreneurship 

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Aayat Farooqui 

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From Keats to Faiz, Aayat is fanatic over poetry and Literature. This self proclaimed connoisseur of chats and mughlai food could be found wondering in old food gullies of purani Lucknow and Dilli.