CSR | NEWS
Slum Redevelopment a CSR Activity
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lum-redevelopment, road safety awareness and consumer protection services will be treated as Corporate Social Responsibility (CSR) activities, according to clarifications issued by the ministry of corporate affairs in response to queries from stakeholders.
BJP’s election manifesto had promised to usher in a low-cost housing policy that would ensure every family in India a home by 2022. The ministry, in a circular, has clarified that slum-redevelopment or housing for economically weaker sections could be covered under the eligible CSR category of ‘measures taken for reducing inequalities
CSR Policy for Schools too
faced by socially and economically backward groups’. Activities relating to road safety promotion, which is a dire need in India, are also likely to get a major fillip as the ministry has clarified these would also be treated as eligible CSR activities. Promoting road safety awareness through print, audio and visual media would qualify as a CSR activity under the broad head of ‘promoting education’; providing trainers to drivers would fall under ‘promoting vocational skills’; and social projects like giving medical and legal aid, treatment to road accident victims would fall under the eligible category of ‘promoting health care’, explains the circular. Any project meant for development of rural India will be treated as a ‘rural development’ project and will be an eligible CSR activity. Likewise, supplementing government schemes like mid-day meals would also qualify as CSR for alleviation of poverty and malnutrition. Renewable energy projects would be eligible for promoting ‘environmental sustainability’.
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fter higher education, the state government has now introduced a dedicated policy for the implementation of CSR activities associated with the school education and sports department. “The provision regarding CSR in the New Companies Act 2013 has brought within its ambit all the companies with at least Rs 5-crore net profit or Rs 1,000-crore turnover or Rs 500-crore network, making its mandatory for them to spend 2 per cent of the three years’ average net profit on CSR activities. This present a big opportunity for the department to seek CSR funding, further accentuating the need to have a fullfledged CSR policy,” reads the GR. As part of the policy, a state-level CSR committee, having secretary, school education and sports department, as its chairman, will be formed. It will have education commissioner and sports commissioner among the six members with deputy secretary (training) as member secretary.
IICA Signs MoU with Grant Thornton
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he Indian Institute of Corporate Affairs and Grant Thornton India LLP have signed a memorandum of understanding. The objective of the MoU which was signed yesterday in Delhi is to develop capacity of the Indian companies for effective implementation of the CSR Rules laid down as per Section 135 of the Companies Act 2013. The MoU was signed by Dr. Bhaskar Chatterjee, DG&CEO, IICAand Mr. Vikesh Harish Mehta, Partner, Grant Thornton India LLP. Dr. Chatterjee pointed out that “With the notification of the rules the agenda has been set for knowledge and awareness building and to show the corporates what they can do for national development.” He added that “IICA creates directional sense and disseminates information. We need partners who share our vision and we are privileged & optimistic to have found GT because this has a kind of connect and synergy that will lead to value creation
all around”. Mr. Mehta said that “The legislation for CSR is a revolutionary concept. Tying up with IICA is a complementary partnership, which will create solid infrastructure for common clients.” He further said that “So far regulation had been compliance driven and the new law takes CSR beyond compliance.” Mr. Rajib Kumar Debnath, Executive Director, Sustainability, CSR and Energy Services, gave an overview of Grant Thornton’s orientation towards CSR projects. Others present at the MoU signing ceremony wereSwarnimaChouhan, Associate Vice President from Grant Thornton, and Mr. Atul Dev Sarmah, Head, Centre for Institutional Partnerships and Corporate Communications (IP&CC), Ms. GayatriSubramaniam, CPE, NGO Hub, National Foundation for CSR (NFCSR), Ms. Swagata Sen Pillai, Sr. Programme Executive, IP&CC, M. Mukesh Kumar, CPE, Data Centre, NFCSR, and Mr. Nikhil Pant, L&D, NFCSR from IICA. July 2014 | CSR Today | 5