Government plans to form new company to manage CSR funds of PSUs

NEW DELHI: The Union government is looking at a proposal to float a company to manage corporate social responsibility (CSR) funds of all central public sector enterprises, to ensure efficient implementation of this social initiative and to free companies from additional responsibility.

 

The ministry of heavy industries and public enterprises is working on a proposal to set up a company under Section 25 on the ground that an independent entity will have the scale and resources to plan and execute CSR and sustainability activities, a ministry official said. "It (the proposal) is still in the works. We have sought some clarity from the ministry of corporate affairs," the person said.

 

Under the new Companies Act, 2013, corporates must spend 2% of their profit on CSR from next fiscal year, provided they have a turnover of Rs 1,000 crore and more, or net worth of Rs 500 crore and more, or a net profit of Rs 5 crore and more.