Spending on profit earning ventures cannot be CSR, says Pilot

New Delhi: As India Inc readies itself for mandatory social welfare spending, Corporate Affairs Minister Sachin Pilot on Wednesday said money spent on activities that earn profits will be a grey area while considering it as a CSR initiative. The rules on what activities should qualify as such a CSR (Corporate Social Responsibility) initiative would be finalised after taking into account suggestions from an independent panel and other stakeholders.

However, spending on profit-making ventures for meeting CSR requirements is a "grey area", Pilot said. The Minister was participating in nearly an hour long interaction with various people on 'Google Hangout' -- a multi-person online video chat facility -- today.

His comments came during a chat with leading industrialist Anand Mahindra who sought to know how any activity that brings in commercial profit would not fall into CSR category. He is the chairman of diversified M&M group. "I think it is too early to do hair splitting on each and every nuance of how CSR will play out. We will learn as we go on. We have just made the structure and it has not come overnight," Pilot said. ZEE NEWS