The fund spent by the corporate under the social responsibility head would not be channeled through the district authorities in Chhattisgarh.
The move is aimed to ensure full utilization of the fund earmarked by the industrial houses for the corporate social responsibility (CSR). The activities carried from the fund were in question as public representatives have been alleging that the corporate used only a nominal percentage for social welfare.
“The corporate cannot use the CSR fund of its own and it will now be channelized through the district authorities,” Chief Minister Raman Singh said. A committee would be formed in each district headed by District Collector that would decide where to use the CSR money and in which project, he added.
The Raigarh district administration had earlier started the practice that would now be followed in the entire state with the announcement from state’s chief minister on Wednesday. Raigarh, which is located about 250 east of state capital, is fast emerging as the industrial town of Chhattisgarh with many steel and power projects coming up in the area.
The committee in Raigarh had approved road building project besides other infrastructure development works in the district. The estimated cost of the projects was calculated at Rs 70 crore and would be incurred by the corporate houses having facilities in the area.
Congress legislator and former minister Mohammed Akbar said most of the industries in Chhattisgarh were misusing the CSR fund and had not used even 10 per cent of it. “The state government had admitted it in the state legislative assembly,” he added.
The corporate had welcomed the move and hoped that it would help the industry from facing allegation of misuse or non ulitisation of fund. “The announcement would regulate the activities taken up by the corporate houses in the area,” PHD Chamber Chairman Pradeep Tandon said.
The projects approved and engineered under the supervision of the district administration would also help in satisfying the public representatives and people in the area, Tandon added.