PSU, private entities not spending 2% of their profits on CSR activities in Assam: assembly panel
The panel suggested the formation of committees at district level, for the selection and appropriate monitoring of programs within the framework of CSR.
Large PSUs, including Oil India, Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC) and Coal India, and private sector entities do not spend the mandatory 2% of their annual profits on social responsibility activities (CSR) companies in Assam, despite having their production units in the state, an assembly committee observed.
The assembly panel 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 5% of their total CSR funds. in the state.
“The committee observes with a serious note that the performance of CSR activities of PSUs and private sector industries in the state is very dismal,” said the Standing Committee on Development (A) of the departments linked to the departments in its report. .
“… private sector industries and PSUs such as OIL, ONGC, IOC, NRL, IOCL (BGR), Coal India Ltd, with their production units in the state do not spend the mandatory two percent of their annual profit (s) for profit, ”he added.
“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 is lagging far behind in regarding development indices and SDGs. objectives, ”the report says.
“As a result, the panel ordered PSUs and private sector industries with their production units in Assam to compulsorily spend 2% of their annual profits on CSR activities and to” distribute their CSR funds evenly throughout state instead of focusing only on a few neighboring districts. ”.
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.
“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). ) within six months, ”he added.
According to the Companies Act 2013, each entity with a net worth of 500 crore or more, or a turnover of 1000 crore or more, or a net profit of 5 crore or more must spend at least 2% of the average net amount profits made during the three immediately preceding financial years, focusing on the surrounding localities where it operates.