Govt does not have mechanism to handle CSR funds

The Madhya Pradesh government has said it does not have mechanism of use the funds and support offered by various corporate houses under corporate social responsibility.

The much awaited Corporate Social Responsibility (CSR) rules have been notified by the Union ministry of corporate affairs and the provisions on CSR and sustainability are covered in the Companies Bill. The Bill, that came into force from May 1, seeks an effective initiation of CSR activities by the industry.

"We do not have mechanism to this kind of support offered by corporate houses under corporate social responsibility. We do not know how to monitor it," said Sanjay Kumar Singh principal secretary, technical education and skills development department here while speaking to a Conclave organized by confederation of Indian Industry to educate the industries on the Companies Bill.

"But," he further said, "discussions and various sessions would yield some results in this direction."

According to an estimate as many as 251 public sector undertakings chips in Rs 20,000 crore each year under corporate social responsibility. "As many as seven per cent of the total fund comes from corporate responsibility is from PSUs," said a senior executive in GAIL India.

CII today explored a mechanism so that various industries can conform to the norms of the Bill and contribute to mandated CSR fund. "CII has envisaged a national movement for mainstreaming CSR for sustained inclusiveness as part of its social development agenda," said CE Fernandes, Chairman, Madhya Pradesh State Council.

Corporate social responsibility and sustainability is a company's commitment to its stakeholders to conduct business in an economically, socially and environmentally sustainable manner.