CB BureauIn a communiqué to all government-run ports, the shipping
ministry said, ‘Considering the economic, social and environmental impact the
activities of ports have on the society and the environment, it is felt that
the ports should serve the interests of the society by taking responsibility
for the impact of their activities.’
The ministry has made it mandatory for these ports to allocate
CSR budgets every year. They have been asked to set aside a percentage of their
net profits. Ports with net profits less than Rs 100 crore in the previous
financial year should earmark 3-5 per cent as CSR budget, while those with net
profits of Rs 100-500 crore will have to set aside 2-3 per cent. Ports earning
net profits of Rs 500 crore or more should allocate 0.5-2 per cent.
The order has been sent to 12 of the 13 ports (Ennore port, Tamil
Nadu, is excluded) that are controlled by the government. Although all these ports
operate as trusts or non-profit-making entities under Major Port Trusts Act,
1963, they will still have to undertake corporate social responsibility
activities.
The government has been trying to convert the 12 port trusts
into corporate entities, but faces opposition from workers’ unions.
According to the ministry’s guidelines, ports may undertake CSR
activities related to their business and make CSR a natural part of their
business in their periphery. Ports cannot execute these activities through their
own staff but through voluntary agencies, self-help groups and trusts.