Govt expects PSEs to meet high standards in CSR: Radhakrishnan

Under new Companies Act, certain class of profitable entities required to shell out at least 2% of their three-year annual average net profit towards CSR

Asking public sector enterprises to weave their CSR activities around long-term sustainable development, the government has said state-run units should earmark more resources towards areas like health, education, drinking water and skill development.

"Our government encourages and expects PSEs to meet high standards in CSR and discharge their responsibilities in a planned manner. Their approach towards CSR planning should be based on long term sustainable development," MoS Heavy Industries & Public Enterprises P Radhakrishnan said at a function organised by public sector body SCOPE.

"I appeal to PSEs to further leverage your CSR efforts in the area of health, education, drinking water, skill development etc. For underprivileged and marginalized persons so as to develop our society, economically socially and environmentally," he added.

Under the new Companies Act, certain class of profitable entities are required to shell out at least two% of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities.

The government is also working on rationalising the CSR norms for public sector enterprises in tune with the new companies law.

At present, public sector entities (PSEs) follow CSR guidelines of the Department of Public Enterprises.