Centre makes it must for profit-making PSUs to fund CSR activities
Making amendments to the Companies Act, the corporate affairs ministry on Sunday said that contributions to "Swachh Bharat Kosh" and "Clean Ganga Fund" would come under CSR framework. (Photo: DC/File)
New Delhi: In a bid to get corporate funds for its flagship schemes, like Swachh Bharat and Clean Ganga initiatives, the government has decided to widen the scope of corporate social responsibility as funds from business entities for the programmes will be considered as welfare spending.
Making amendments to the Companies Act, the corporate affairs ministry on Sunday said that contributions to “Swachh Bharat Kosh” and “Clean Ganga Fund” would come under CSR framework.
“Swach Bharat Kosh” has been set up to attract funds from various entities, including corporates, for activities related to Swachh Bharat initiative. The “Clean Ganga Fund” is also aimed at pooling money for taking up works to clean the river Ganga.
These two initiatives are the latest ones to be brought under the CSR ambit where contributions made to the Prime Minister’s National Relief Fund have been included.
Through a notification, the ministry has inserted the words “including contribution to the Swach Bharat Kosh set up by the Central government for the promotion of sanitation” in Schedule VII of the Act.
Besides, the words “including contribution to the Clean Ganga Fund set up by the Central government for rejuvenation of river Ganga” have been inserted in the Schedule.
Schedule VII of Companies Act, 2013, pertains to CSR activities.
Swachh Bharat and Clean Ganga are among the major initiatives of the Modi government, which has embarked on a major drive to ensure cleanliness across the country.
Livelihood enhancement, rural development projects, protection of national heritage, setting up public libraries, promotion and development of traditional arts and handicrafts, are among the activities coming under the CSR ambit.
Among others are: eradicating hunger, poverty and malnutrition, promoting healthcare and sanitation and making available safe drinking water. Promoting gender equality and rural development projects would also be considered as social welfare spending.
The government has made it mandatory for all profit-making central public sector companies to spend money on CSR activities. Besides, these enterprises cannot include money spent on sustainable development efforts under the Corporate Social Responsibility ambit.
( Source : dc correspondent )
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