News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

Rediff.com  » Business » PSUs may have to fund CSR from net profit

PSUs may have to fund CSR from net profit

Source: PTI
Last updated on: February 10, 2010 12:37 IST
Get Rediff News in your Inbox:

Corporate social responsibility for a state-owned firm may no more be a "photo opportunity" for its chairman but would involve people-centric projects to be funded by 2-5 per cent of the company's net profits.

The Department of Public Enterprises (DPE) is in the final stage of preparing guidelines for the central public sector enterprises (CPSEs) to take up important corporate social responsibility (CSR) projects, DPE Secretary Bhaskar Chatterjee told PTI.

The proposal, cleared by the Committee of Secretaries and awaiting approval by Heavy Industries and Public Enterprises Minister Vilasrao Deshmukh, involves contribution of 3-5 per cent of net profits of up to Rs 100 crore (Rs 1 billion).

Those earning net profit of more than Rs 100 crore may be asked to contribute up to two per cent of the amount, he said. The CSR would no more be confined to organising blood donation camps or some charity event.

The CPSEs would be obliged to take up specific projects to help people affected directly or indirectly by their businesses. "The government has taken a very firm step. There is no escaping from CSR, which will no longer be a photo opportunity for the chairman," Chatterjee said.

This would be their primary obligation, out of the profits that they make. "You (CPSE) must recycle it to help the society," Chatterjee said. He said the CSR norms would be finalised within a month. "I would put a timeline of two to three weeks".

What do you expect from the forthcoming Budget for 2010-11? Tell us!

Get Rediff News in your Inbox:
Source: PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 

Moneywiz Live!