Inclusive growth calls for intensive collaboration between govt and corporates: Pranab Mukherjee

President launched ‘Sammaan’, a common platform to facilitate corporates and NGOs to comply with the requirement

jasleen

Jasleen Kaur | April 29, 2015 | New Delhi


#cii   #iica   #corporat social responsibility   #CSR   #president of india   #pranab mukherjee  

President Pranab Mukherjee has asked the corporate sector to extend their corporate social responsibility (CSR) in rural areas by meeting the infrastructure requirements in government schools and investing in teacher up-skilling.

He said the companies can adopt blocks or districts for such intervention and this can be synergised with efforts to tackle problems like malnutrition and other health-related issues.

Addressing the national summit on CSR, organised by the Confederation of Indian Industry (CII) at Vigyan Bhawan in Delhi on Wednesday, the president said the Companies Act, 2013 which mandates spending on CSR activities, could help unlock an estimated amount between Rs 8,000 to 20,000 crore yearly, for social sector engagement.

“A structured development strategy is now required to ensure that these funds are efficiently deployed in areas most beneficial to society,” he said.

He said the notion of CSR is not new to India, and Indian industry has displayed keen interest in contributing to the betterment of the society over the years. But now the CSR has received a renewed impetus through a legal framework.

Section 135 of the Companies Act 2013 mandates every company with net worth of Rs 500 crore or more, turnover of at least Rs 1,000 crore and net profit of at least Rs 5 crore, to constitute a separate committee on their board and spend at least 2 percent of their profits on CSR activities.

Mukherjee said that inclusive growth is a strong objective of the public policy and it calls for intensive collaborative efforts of the government and the corporate sector to provide the basics for improving the quality of life in rural and urban areas.

President Mukherjee also launched ‘Sammaan’, a common platform developed jointly by BSE (Bombay Stock Exchange), CII (Confederation of Indian Industry) and IICA (Indian Institute of Corporate Affairs), that will facilitate corporates to comply with the requirement. As of today, 1294 companies listed on BSE are required to adhere to this regulation and expected to spend Rs 7850 cr in CSR activities in FY’16.

‘Sammaan’ will give a credible platform to more than 20 lakh NGOs operating in India. It will adopt a rigorous process to list NGOs on this platform which the corporates can choose from. It will also provide a letter to the CSR committee of corporate houses that fulfil the obligations under Section 135 of the Companies Act. The platform will also be an information warehouse on NGOs and their CSR activities with support from corporate houses which can serve as a useful tool to analyse overall impact of such activities on society at large.

In earlier session, Bhaskar Chatterjee, director general, Indian Institute of Corporate Affairs (IICA), a think tank under ministry of corporate affairs, said, “Civil society is the implementing agency and is an important aspect for implementing CSR.” He added that any kind of trust deficit between the corporate and civil society should be addressed urgently.

Some other representatives of corporate houses found the government to be over regulatory on the issue of implementing section 135 of the Act.

Rakesh Bharti Mittal, vice chairman of Bharti Enterprises said corporate houses are coming forward in complementing various efforts of social development by government of India. But, he added, they face problem in finding the right implementing partner. “More than 95% of NGOs [operating in India] are not transparent. Once you write the cheque, you don’t really know where the money is spent. They should provide complete transparency of every single penny spent."

Prabitra Narayan Roy Chowdhury, advisor, strategic planning and sustainability, Adani group said the regulatory aspect of CSR has been well addressed by the government and now, “Government should not over regulate. Instead it should facilitate."

Harpal Singh, mentor and chairman Emeritus Fortis Healthcare said while the first year of implementing Companies Act and mandating CSR spending has been remarkably successful in bringing CSR from backroom to boardroom activity, there are other aspects that need to be addressed. "If money is spent on social agenda it should be well spent. The inefficiency should be seen as public crime. Government should define the directions but not determine the path for corporate houses. It should invoke industry to do things but do not put conditionality around it," he said.
 

Comments

 

Other News

“UP situation extremely bad, govt hiding data”

India is battling the second wave of Covid-19 and infections are spreading into the interiors of the country, says Dr Anurag Bhadouria, National Spokesperson, Samajwadi Party. It is precipitated by the elections in five states, the Kumbh Mela in Haridwar and also panchayat elections in many states, he says

CoWIN to have new security feature from Saturday

The CoWIN system, the overarching digital platform for citizens seeking appointment for the Covid-19 vaccine, is introducing a new four-digit security code” in the application from Saturday to minimise a peculiar error and subsequent inconvenience to citizens. “It has been notic

Learn from Mumbai model to manage oxygen supply: supreme court

Mumbai, once the epicentre of the pandemic in India, has emerged as a model for all others in mitigating the crisis. The supreme court on Wednesday said the central government should adopt and take lessons from the Mumbai model to manage liquid medical oxygen supply for Covid-19 patients in Delhi.

‘What do they know of history who only history know?’

A Functioning Anarchy? Essays For Ramachandra Guha Edited by Srinath Raghavan and Nandini Sundar Penguin Random House India / 392 pages / Rs 650 In a long and versatile career spanning thirty-five years, Ramachandra Guha has prod

BMC commissioner urges Mumbaikars to come forward for testing

To take preventive steps early and save lives, BrihanMumbai municipal corporation (BMC) commissioner Iqbal Singh Chahal has urged citizens to come forward and get themselves tested.   Mumbai has seen a dip in Covid-19 cases in the last few days after an unprecedented increase in cases s

India records over 3 lakh recoveries, fresh cases down

India reported 3,68,147 new cases on Monday, a number lower than the 4 lakh-plus recorded in the weekend. Also, more than 29.16 crore Covid tests were conducted across the country. As many as 29,16,47,037 have been conducted as on date. India’s cumulative recoveries now stand

Masterminds Masterclass with Rajniesh Duggall on Acting & Modeling



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter