Govt to revise social welfare spending norms of PSUs
23/06/2014 13:29
The Government is set to modify the social welfare spending norms to replace the existing Corporate Social Responsibility (CSR) spending based on guidelines issued by the Department of Public Enterprises (DPE). Public sector companies will soon have to follow the social welfare spending norms as prescribed under the new companies law that will replace existing guidelines in this regard. Under the Companies Act, 2013, certain class of profitable entities is required to spend at least two per cent of their three-year average annual net profit towards CSR activities. According to an official, DPE would be harmonising CSR norms for public sector enterprises with that of provisions in the new Companies Act. DPE would get it vetted by the Corporate Affairs Ministry before coming out with the amended rules, the official added. Meanwhile, the Ministry has asked stakeholders to liberally interpret the provisions in Schedule VII (Companies Act) -- that relates to CSR works. "One-off events such as marathons/awards/charitable contribution/advertisement/sponsorships of TV programmes etc would not be qualified as part of CSR expenditure," the Ministry said in a recent circular.
23/06/2014 13:29
The Government is set to modify the social welfare spending norms to replace the existing Corporate Social Responsibility (CSR) spending based on guidelines issued by the Department of Public Enterprises (DPE). Public sector companies will soon have to follow the social welfare spending norms as prescribed under the new companies law that will replace existing guidelines in this regard. Under the Companies Act, 2013, certain class of profitable entities is required to spend at least two per cent of their three-year average annual net profit towards CSR activities. According to an official, DPE would be harmonising CSR norms for public sector enterprises with that of provisions in the new Companies Act. DPE would get it vetted by the Corporate Affairs Ministry before coming out with the amended rules, the official added. Meanwhile, the Ministry has asked stakeholders to liberally interpret the provisions in Schedule VII (Companies Act) -- that relates to CSR works. "One-off events such as marathons/awards/charitable contribution/advertisement/sponsorships of TV programmes etc would not be qualified as part of CSR expenditure," the Ministry said in a recent circular.
