Fund crunch and near-stagnant sources for revenue generation seem to have prompted the State Government to turn towards corporate houses and that also in a more assertive manner.
The State Government is eyeing massive fund available under corporate social responsibility (CSR) with over 16,000 companies operating in Jharkhand in order to run host of its welfare activities and to deal with frightening problem of naxalism.As per an estimate the companies with over Rs5cr annual turnover have more than Rs20,000cr of fund under their CSR activities heads which have to be utilised for the wellbeing of the masses, especially living in deprivation.
“What we want that the massive amount accumulating for CSR activities with companies should be spent in conformity with us. We can have a separate budget with the fund that can be used in taking up works under watershed management, health sectors and adopting even panchayats. Jharkhand’s budget is largely dependent on the grants coming from the Centre and we face shortage of money to run our own activities here,” said KN Tripathi, Rural Development and labour Minister on Thursday at a CII function.
The programme was to share ideas with the corporates about spending money being generated after the amended CSR Act came into force from April, 2014. Under the new provisions, the companies with over Rs5 crore turnover have to keep aside two per cent of their profit for CSR activities preferably undertaken in their area of operation. Jharkhand is yet to pass a law in this direction though.
The Minister elaborating more pleaded the representatives present to work on the ideas like having a society comprising Government and their officials or share handsome percentage of the fund available with it. “Health, water management, adopting over 500 panchayats which are lWE-hit are the areas where your money can be routed so that things can change for better. A policy should be in place on which we can walk together from next year,”added Tripahti.
He also instructed companies to share their ideas with his Department with 10-point quick action plan. Chief Secretary Sajal Chakravorty also stressed for a centrally coordinated kind of funding for CSR activities which can be managed by ‘“CSR council of Jharkhand kind’ of thing.” The intervention holds some water as well. Three public sector coal companies — CCl, ECl and BCCl operating in the State — have amassed over Rs395 crore for last three years under CSR head but they together have been able to spent not more than Rs100 crore for the areas of skill development, providing health, education to the poor of affected areas or in the field of environmental protection.