Chief Secretary Alok Ranjan directed that every company in state with a Board of Directors and a net worth of Rs 500 crore or a turnover of Rs 1000 crore or net profit of Rs 5 crore, have to form a Corporate Social Responsibility (CSR) Committee.
These companies during any financial year shall ensure that the company spends at least 2% of the average net profits of the company made during the three immediately preceding financial years
“In addition to compliance with the Companies (Corporate Social Responsibility Policy) Rules 2014, this committee will recommend the funds to be spent on CSR activities. The fund will be utilised in the fields of health, cleanliness, education, women empowerment, environmental sustainability, rural development and sports, slum area development, etc.
Ranjan stressed said that the direction has to be followed by all private and public sector companies operating in UP. He said that with the ever increasing demand in welfare schemes, CSR seeks to address the societal problems. A large a number of large companies are operating in UP and are contributing to development of society in a big way. He said that the government would develop database of projects suitable for the CSR to assist the companies in selection of social projects.
Ranjan has directed for constitution of a 15-member high-level Monitoring Committee, headed by Chief Secretary with Infrastructure & Industrial Development Commissioner, Principal Secretaries of concerned departments along with Director, Industries and Executive Director, Udyog Bandhu as its members. Under its mandate of rigorous monitoring and to decide on policy related issues of CSR activities, this committee will meet every two months.
Similarly, Chief Secretary has directed for formation of District-level committees under the Chairmanship of District Magistrate with eight members to locally monitor and coordinate the execution of projects under the CSR activities. Besides government officials, representatives of NGOs and reputed institutions of learning, like IIM, IIT, Medical Colleges, etc. could also be nominated as members of this committee.