GSPL shareholders approve Rs 64.40 crore for state's charity proposal

The shareholders of Gujarat State Petronet Ltd (GSPL) have given a green signal to Gujarat government's charity proposal. As part of the proposal, state run PSUs are required to contribute 30 per cent their profit before tax (PBT) for various social causes.

Recently, GSPL shareholders passed the ordinary resolution, by way of postal ballot, to make charitable contribution for social projects.

The company will contribute Rs. 64.40 crore for the financial year 2008-09.

The shareholders passed the resolution related to charity proposal with a majority of 84.03 per cent, while only 15.97 per cent votes were cast against the resolution.

In the year 2008, Gujarat government had come out with a resolution asking all the state PSUs to contribute 30 per cent of their PBT for charity as part of corporate social responsibility. The controversial proposal drew flak from the investors of the state PSUs. Gujarat government holds 49.23 per cent stake in the company.

Gujarat government's proposal was passed by those PSUs where the government holds majority stake. The boards of Gujarat Mineral Development Corproation (GMDC) and Gujarat State Fertilizers and Chemicals Ltd (GSFC) have already given a go ahead to the proposal. However, the shareholders of Gujarat Alkalies and Chemicals Ltd (GACL), India's largest soda ash company, turned down the charity proposal.

Gujarat Narmada Valley Fertilizers Co(GNFC) shareholders also gave a thumb down to the controversial proposal last year.