CSR
Chhattisgarh Wants all CSR Spending to Go to CM Development Fund
NEW DELHI: The Chhattisgarh government has sprung a unique and potentially illegal interpretation of the new Companies Act’s mandatory Corporate
Social Responsibility (CSR) provision on private sector players in the State, by asking firms to deposit their contributions to the Chief Minister
Community Development Fund rather than undertake CSR projects on their own.
The Chhattisgarh government has adapted this to set up a Chief Minister Community Development Fund “for the purpose of holistic development of
affected districts/district related with the industries (specially the setting up of mega and ultra mega industrial projects)… with the amount to be obtained under Corporate Social Responsibility (CSR)… The abbreviated name of this policy is Corporate Social Responsibility Policy 2013.”
The policy published in the Gazette of Chhattisgarh on May 3, 2013, mandates that public/private companies with net profits (in the previous year) of less than Rs 500 crore will contribute 3% of their annual profits towards CSR to the Chief Minister Community Development Fund, while public/private enterprises with net profits above Rs. 500 crore will have to pay 2% of their annual profits towards CSR with a minimum threshold of Rs. 15 crore
“This amount will be deposited by the industrial unit by 30th September every year by Chhatisgarh State Industrial Development Corporation (CSIDC) in the operated fund mandatorily through cheque or other mode (not cash). CSIDC will issue it to the concerned district every year according to the laid down procedureIndia CSR .in ., The Hindu
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