A Faculty member willing to involve himself/herself in entrepreneurial activity will be allowed to hold an office like President/Chairman/Director of the company under TBIU during the period of incubation. The financial advantages to the faculty member, if any, during this period will be as per the honorarium/consultancy norms of the Institute.
GUIDELINES FOR TBIU RESIDENT MEMBERS
Preamble:
Application for membership of TBIU in IIT Delhi will be made to FITT. All applications will be evaluated by the Standing Screening Committee, who will recommend to the TBIU Board the most suitable applicants for residency in the TBIU in one of the three following categories:
Category I:
Ventures that qualify as a nursery incubation project – initiated by one or more members of the academic staff, students and/or alumni of one of the IITs or other premier institutes, supported by the Institute, FITT or some other technology promotion agency (government or non-government) like TDB, TIFAC, DST, DSIR, ICICI etc, with a view to trying out a novel technological idea for upgradation to a commercial proposition, scaling up a laboratory proven concept, and setting up a technology business enterprise.
Category II:
Technology-based start up company promoted by a 1st Generation Entrepreneur desirous of R&D partnership with the Institute.
Category III:
Technology/R&D unit of an existing small/medium size enterprise, industry association or an R&D Company who desires to have close technology interface with IIT Delhi.
Each successful applicant approved for membership by the TBIU Board and hereinafter called TBIU Resident Member will have to execute a License Agreement for space utilization with the Institute as well as a bilateral MOU on Synergistic collaboration with the Institute through FITT. If there is any conflict in the rules and byelaws given below with any of the clauses of the agreements mentioned above, the rules/clauses of the said agreements will prevail.
RULES AND/OR BYELAWS :
Rule-1
Residency period will be normally for two years, extendable by another year in special cases, depending on progress of incubation. Under no circumstance, however, the total period of residency will exceed five years.
The purpose of TBIU is to support emerging companies through their infancy. After two years the concessions and the facilities provided to incubatee companies will be gradually withdrawn
Rule-2
Each successful applicant, admitted as a resident member of the TBIU, will have to pay to the Institute a charge for utilization of space, at a rate concessional to the Benchmark rate which is the prevailing market rent realizable (which at present is Rs. 80/- per sq. ft. per month). The space utilization charges for each admitted member will be fixed on the basis of recommendation of the Standing Screening Committee and subsequent decision/approval of Director, IIT Delhi. Normal tariff are illustrated as below:
S.No. |
Particulars |
Category I & II |
Category III |
1. |
Space utilization – 0 to 3 months |
Free |
Upto 50% concession on benchmark |
2. |
Space utilization – 4 to 24 months |
Upto 75 % concession of benchmark |
Upto 50% concession on benchmark |
3. |
Charges for maintenance of common facility |
@20% on the physical space occupies by an incubatee |
@ 20% on the physical space occupied by an incubatee |
4. |
Charges for utilities such as electricity/telephone |
At actuals |
At actuals |
5. |
Charges for consultancy R&D assistance, use of labs/workshops/other facilities etc |
As per Institute norms |
As per Institute norms |
e.g. for 200 sq. ft. charges payable will be as follows:
S.No. |
Particulars |
Category I & II |
Category III |
1. |
0-3 Months |
Free |
Rs. 9600 p.m. |
2. |
4-24 Months |
200 x (80+(80x.2))x.25 = Rs. 4800 p.m. |
Rs. 9600 p.m. |
A clause on this will be incorporated in the MOU with the Institute and the Resident Member through FITT
Rule-3
The concession granted on space utilization charges accrued during the total period of stay (residence) in the TBIU (referred hereinafter as deferred charges) or 5% of the paid up capital, whichever is higher will normally form the equity share of the Institute in the start-up Company established before or after the entry of the applicant into the TBIU. The Resident Company will undertake to buyback the entire equity holding of the Institute, after a given number of years, or at the time of declaration of the IPO (Initial Public Offer) at a Stock Exchange or on the date of exit from the TBIU, whichever is agreed between the institute and the Resident member, at a price which is the highest of the following:
Book value of the Shares.
Price that will give IITD a net return of 12% p.a. compounded annually over the amount accumulated as deferred charges aforesaid.
Market Price of the shares.
In the event the Resident Company fails to buyback the shares from the Institute at the appointed time as indicated above, the Institute will be free to dispose of the share without further reference to the Company.
Clauses on the above requirements will be suitably incorporated in the bilateral MOU on Synergy the Institute and the Resident Member.
Rule-4
No routine sales/marketing operation will be permitted from the TBIU.
Rule-5
The TBIU address in the IIT Delhi Campus cannot be used as the address of the Registered Office of the Resident Company.
Rule-6
Subleasing of any kind of the space given at TBIU is not allowed. Non-observance of this rule will result in immediate expulsion.
Rule-7
If a Resident Company require more space or has vacant space, they are required to inform FITT in writing.
Rule-8
Resident Companies are required to provide a list, as per the following format, of their full time and part time employees:
S.No. |
Name |
Age |
Sex |
Full time or part time |
Qualification & Experience |
Designation & Responsibility/Duty |
Address |
Signature |
Rule-9
All the visitors to the TBIU Complex are required to sign in the visitors register and collect their visitor’s badges/passes. They must bear these passes/badges at all times while in the TBIU complex. They are required to return these passes/badges while leaving the building.
Rule-10
The space given at TBIU complex is without any furniture. Resident Companies are required to submit their lay out plan for any modifications, permanent fixtures etc which they are planning in their module. Without the prior approval of the lay out plan from FITT/IITD they cannot undertake such work. After incubation, the space should be returned as it was given in the beginning excluding normal wear and tear, unless agreed by the Institute.
Rule-11
Resident Companies should observe that noise levels are kept at minimum and, no abnormal noise by any machine or by their employees or visitors should be made. Any complaint of high noise level will result in appropriate action by FITT/IIT Delhi.
Rule-12
All Resident Companies are required to observe health and safety standards. No hazardous material can be brought inside the complex without the prior approval of FITT/IITD. All the resident companies are required to keep a first aid kit in their modules.
Rule-13
No resident company or its employee can display notices or signage except on the provided notice boards and the space provided for such signage.
Rule-14
It is the responsibility of all the resident companies to use the common facilities e.g. common area, fax & other machines etc with care.
Rule-15
Resident Members will be required to periodically submit the TBIU Board (through FITT) a report on the progress on the incubation projects and should make presentations to the Board as and when invited to do so. The Resident Member Company is also obliged to submit to FITT one copy each of the MOA, AOA, Partnership Deeds (if applicable), and Annual Report (as and when approved by their Board of Directors).
Rule-16
It will be obligatory for incubatee companies to involve IIT area experts and use existing lab facilities during the developmental activities for mutual benefits.
Rule 17
Notwithstanding any issue pending between the member and the Institute/FITT at the time of completion of the agreed tenure of incubation period, or if given an exit notice by the Institute on the recommendations of the TBIU Board, the TBIU resident member must vacate the given space unconditionally.
Rule-18
The Resident member will follow all the rules and/or byelaws prescribed and /or modified from time to time, by the TBIU Board and/or Institute.
Rule-19
On issues wherein no rules and/or byelaws are clearly defined, IITD rules and/or byelaws will prevail.
Rule-20
Resident members are required to keep the Institute informed about any visitor from abroad, foreign collaboration and/or foreign partner/director, and abide by the rules/procedures in vogue in the Institute.
Rule-21
The Resident member is required to appoint one representative each from the Institute & FITT on their board and /or any other decision making body in advisory capacity.
Rule-22
Resident members are required to keep the Institute informed in advance and obtain their concurrence in writing for the followings:
Change of Name incubation company or any other form of legal entity
Any Major change in their incubation/business plans
Change in their ownership pattern
Change in their Board of Directors
SEE ALSO: Key Performance indicators (as on 31-03-2005)
