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Odisha to frame new CSR guidelines soon

The industries department is collecting information pertaining to the CSR activities undertaken by the companies in the state

BS Reporter  |  Bhubaneswar 

The state government is in the process of formulating a new set of guidelines for corporate social responsibility (CSR) activities in the state.

"The state government is preparing a status paper on the CSR activities. We are bringing out a CSR guideline as per the need of the state," said state industries minister, Debi Prasad Mishra at Corporate Governance and CSR Symposium 2015, organised by Indian Chamber of Commerce here.

The industries department is collecting information pertaining to the CSR activities undertaken by the companies in the state.

The guidelines will be finalised this year, he added.

It may be noted that the section 135 of Companies Act, 2013 mandates that all companies, including foreign firms, either with a minimum net worth of Rs 500 crore or turnover of Rs 1,000 crore or net profit of Rs 5 crore, spend at least two percent of their profit on CSR. Every eligible company has to constitute a Corporate Social Responsibility Committee of the board consisting of three or more directors, out of which at least one director shall be an independent director.

The guidelines will make it incumbent on the companies to specify on which sectors the corporate are spending their money in consultation with the local stake holders after assessing their needs, so that there is no duplication of efforts relating to CSR activities and various government schemes, said Sanjiv Chopra, secretary, state industries department.

Instead of distributing their spending across sectors, they (corporates) must spend the CSR money on specific sectors in selected districts, he added.

The act has given a free hand to the corporates to choose the locations and sectors where the fund can be deployed. Among others, chief secretary, GC Pati, mines secretary, RK Sharma, Director General of ICC, Rajeev Singh spoke on the occasion.

First Published: Wed, May 13 2015. 20:20 IST
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