CB BureauWith the change of regime in the centre, a section of supposed experts on corporate social responsibility had started assuming that the new government might not focus on CSR as much. And with the regime’s liberal attitude towards industries and granting environmental clearances to projects on hold, the experts’ predictions seemed correct.
However, Minister of State for Corporate Affairs Nirmala Sitharaman have attempted to clear all doubts and explained the government’s stance on CSR in a single statement.
Replying to a question in Rajya Sabha, the minister said that the government was ‘keenly watching the companies and in case a company does not meet the norms, we will certainly ask for reasons.’ The minister stated that the government would keep a close watch on CSR spending of corporate groups and would surely check whether they were complying with the law as mandated in the new Companies Act.
Certain class of profitable companies are required to spend at least two per cent of their three-year average annual net profit towards CSR activities. The norms came into force on1 April.
Answering to a query on amendments in the CSR rules, the minister in a written reply said, ‘The issue of amending rules relating to CSR with a view to plugging any loophole can be examined only after some information about the actual implementation is available.
‘As relevant provisions of the law have come into force this year and CSR policies of companies are in the process of formulation, specific details would be available once Board reports are available after September 2015.’
The minister also made it clear that there would be no tax exemptions on CSR spends.