The State Government has proposed institutionalisation of CSR (Corporate Social Responsibilities) activities to make them more comprehensive, useful and sustainable.
A high-level meeting to this effect was held under the chairmanship of Chief Secretary AP Padhi at the State Secretariat on Friday wherein Industries Principal Secretary Sanjeeb Chopra outlined the issues for discussion. The Chief Secretary advised to form a State-level council as a facilitating agency to help the CSR planning of the corporate houses in line with development needs of the State.
The representatives of corporate houses, industry associations and chambers of industries present at the meeting welcomed the proposal.
Chopra said the proposed State council would only facilitate the CSR spending by the companies and help them report on developmental outcomes. Such coordinated approach would lead to target-oriented utilisation of the CSR funds. The council is proposed to he set up in the Ipicol with its steering committees both at the State and district levels.
As per the existing provisions of law, companies with net worth of Rs500 crore or more or turnover of Rs1,000 crore or more or with net profit of Rs5 crore or more have to spend at least 2 per cent of their average net profit on CSR activities. Each company constitutes a CSR committee. Formation of a State council would facilitate each of these committees and guide them in a more fruitful spending of the CSR funds.
During 2014-15, around 287 corporate houses spent nearly Rs344.12 crore as CSR fund. Out of this, around Rs96.15 crore was spent on infrastructure development, Rs71.93 crore on education, Rs51.23 crore on health, Rs40.57 crore on environmental protection, Rs29.06 crore on livelihood promotion, Rs11.55 crore on vocational training and Rs44.16 crore on other CSR activities. Around 90 per cent of the funds were spent only in 10 districts. Formation of a State council is expected to help in spending this fund more intelligently across the areas and sectors.