Setting up of Private Universities the latest trend in Indian Education sector. Private Universities are setting up in different states as per the conditions of State Governments. A private University can be set up with minimum of Approximate Rs. 40 Crore Investment. This may vary according to state by state expenditure ratio. A better planned Private University have low risk, if it start with quality staff, modern infrastructure facilities, updated course curriculum and better placement tie-ups. A Private University can be sponsored by a Charitable Trust, Charitable Society or a Section 25 Company formed under Indian Companies Act 1956. The conditions for setting up charitable Society will vary according to state wise regulations. A minimum of one year will be allowed to setup the infrastructure facility after getting LOI from the Government.
After receiving application with requisite fee, project viability, Project plans, Financial capability details of Sponsoring body etc, the state government will setup committees like Academic Committee, Financial Committee, State Level Committee etc with eminent scholars and experts in the particular fields. If the committees are satisfied with the proposal of Sponsoring body the government will setup the proposed university as per the guidelines of different state Private University Acts.
The Sponsoring body for setting up a Private University can be:
A Charitable Trust
A Charitable Trust Registered with the Registrar can sponsor for setting up of a Private University. Approval u/s 12A and exemption u/s 80-G will be an added advantage for setting up a Private University. If the Charitable Trust have sufficient fund, remarkable experience in running educational institutes with good reputation, then setting up the Private university will be easier.
A Charitable Society
A Charitable Trust Registered with the Registrar of Societies can sponsor for setting up of a Private University. Approval u/s 12A and exemption u/s 80-G will be an added advantage for setting up a Private University. If the Charitable Society have sufficient fund, remarkable experience in running educational institutes with good reputation, then setting up the Private university will be easier.
A Section 25 Companies
A Section 25 Company Registered with the Registrar of Companies can sponsor for setting up of a Private University. Approval u/s 12A and exemption u/s 80-G will be an added advantage for setting up a Private University. If the Charitable Society have sufficient fund, remarkable experience in running educational institutes with good reputation, then setting up the Private university will be easier. Section 25 Companies have wider acceptance in the society and before various authorities. These kind of companies have various privileges mentioned in Section 25 of Indian companies Act, 1956