IIM-A Setting Up Company to Raise Funds from Alumni

Ahmedabad: The Indian Institute of Management - Ahmedabad (IIM-A) will set up a company to collect funds from its well-off and influential alumni. The fund collected will be utilized in the areas of infrastructure expansion, case studies and also help students belonging to the economically weak backgrounds in the institute. As per sources, the company, Vidya Vardhini Education Foundation (VVEF), is being set up under Section 25 of the Companies Act.

Atanu Ghosh, Dean, Alumni and External Relations, IIM-A has said that the board for VVEF is being set up. It is proposed to be run by alumni members and representatives from the institute. These funds will be utilized in the areas of infrastructure expansion, case studies and also help students from economically weak backgrounds in the institute. Also, the company has applied for registration and incorporation. Mr Ghosh has said that all procedures and documentation formalities for the incorporation have already been completed. He said that the certificate of incorporation is likely to be received by the end of March.

As per sources, the concept of setting up such a company was proposed by a group of 1984 alumni at their silver jubilee reunion in December 2008. Ghosh added that this proposal was presented to the board of governors which subsequently approved it. He said that they hope to raise Rs 250 crore over a period of time. He also added that it is a far-fetched thing and would also require a large amount when asked if the money will be used for setting up campuses abroad. But if the contribution is large and if there is such a necessity in future, they may consider it, he added.

A Section 25 company is a non-profit company formed for the purpose of promoting commerce, art, science, religion, charity or any other useful object and is granted a licence by the Central government. It should intend to apply its profits or other incomes only in promoting its objectives. Sources say that over a period of five decades, about 34,000 students have graduated from the institute. Nayan Parikh, president of IIM-A Alumni Association (Ahmedabad chapter) has said that most world-class institutions have involved the IIM-A alumni in their development. He said that the idea of setting up a company is to get support from alumni and involve them in various activities.