Maha mulls emulating Gujarat's model of CSR spending

Taking a cue from Gujarat model, Maharashtra Government is mulling to set up an authority that will play an advisory role for companies to spend their money as part of their corporate social responsibility (CSR) plans on key development and welfare projects.
An official from the state Finance Department today said that a delegation recently visited Gujarat to understand its Government's methods of ensuring that CSR funds received from corporates are utilised to optimum levels.
"We recently visited Gujarat to understand how are CSR funds used for development projects there. They have made a very simple website which companies can use to select where they want to spend their money. The CSR team ensures there is proper utilisation of CSR funds and high level of accountability is maintained," he said.

Maharashtra's proposed CSR Authority would be given the task to ensure that corporates get to choose the sector, district and the town where they would like their money to be used, the official said.
"Based on the company's preference, the Government will then advise them the top 10 NGOs that are actively working in the region and their preferred sector. At the same time, the role of middlemen will become obsolete. The funds will be absolutely clean and every penny used for development," the official said.
If a company wishes, the Government will help it execute its plan of development by charging a nominal fee, like the Gujarat Government currently does, he said.

"During our trip, we met Gujarat Finance Secretary Sanjiv Kumar and tried to understand every aspect of the model they have put in place. A feasibility test will be done in Maharashtra and, based on results, a final decision on setting up a CSR Authority authority will be taken."
The Companies Act, 2013 mandates that corporates with more than Rs 5 crore of net profit must use at least 2 per cent of it over three years for a list of activities mentioned under CSR rules.