PSU, private entities not spending 2pc of their profits on CSR activities in Assam: Assembly panel

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Large PSUs, including Oil India, ONGC, IOC and Coal India, and private sector entities do not spend the mandatory two percent of their annual profits on CSR activities in Assam, despite the fact that their production units are in the state, observed a committee of the assembly. .

The task force in its report for the Department of Industries for 2021-2022 suggested that PSUs and private companies with production units outside Assam should spend at least five percent of their total funds on social responsibility. of companies (CSR) in the State.

The committee observes with serious note that the performance of CSR activities of PSUs and private sector industries in the state is very dismal.

“ … private sector industries and power units such as OIL, ONGC, IOC, NRL, IOCL (BGR), Coal India Ltd, with their production units in the state do not spend both on mandatory hundred of their annual profit (s) for profit, ”said the Standing Committee on Development (A) government departments in its report.

The CSR activities undertaken by the companies are mainly concentrated in the areas neighboring their units, while this work was not distributed evenly throughout the state, the panel said. The committee further observes that PSUs and private sector industries with their out-of-state production units spend virtually no amount of CSR funds in Assam, although the state lags behind. with regard to development indices and SDG targets, ”the report said.

After looking at business disruptions, the panel recommended that companies with no production units in Assam spend at least five percent of their total CSR funds in the state.

“PSUs and private sector industries with their production units within the state such as OIL, ONGC, IOC, NRL, IOCL (BGR), Coal India Ltd, etc. are required to devote 2% of their annual profits to CSR activities, ”“ Entities should “distribute their CSR funds evenly across the state instead of focusing only on a few neighboring districts,” the Assembly.

The panel suggested the formation of district-level committees, comprising deputy commissioners, MPs and MPs, for the selection and appropriate monitoring of programs within the framework of CSR.

” The details of the plans along with their location and the amount spent on each plan in the state over the past five years under the CSR fund by PSUs and private sector industries should be submitted to the committee (s) ( s) within six months, ” he added.

According to the Companies Act 2013, each entity with a net worth of Rs 500 crore or more, or a turnover of Rs 1,000 crore or more, or a net profit of Rs 5 crore or more must spend at least two percent of the average net profits made during the three years immediately preceding it, focusing on the surrounding localities where it operates. Small businesses do not fall under mandatory CSR.

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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