Thaindian News

Mumbai, March 21 (IANS) The corporate sector cannot avoid its responsibility of improving the lives of people, union Heavy Industries and Public Enterprises Minister Praful Patel said here Monday.

He was speaking after inaugurating the National Corporate Social Responsibility (CSR) Hub at the Tata Institute of Social Sciences (TISS) in central Mumbai.

He said the corporate sector had benefitted from the overall development process, hence it should not have any problems with CSR related provisions in the new companies bill, mandating it to put aside a certain portion of profits for the welfare of society.

Patel added that the government cannot take all the responsibility as there is a large section of society that is still marginalised and impoverished.

“If everybody thinks that government can solve all the problems of people, then it is impossible,” he said.

The government had, in April 2010, issued CSR guidelines for all central public sector enterprises (PSE). Under CSR, the companies have to create CSR budget as a specified percentage of net profit of the previous year.

If the profit is less than Rs.100 crore, CSR budget would be 3-5 percent of the net profit.

If the profit is between Rs.100 crore and Rs.500 crore, CSR budget allocation would be 2-3 percent, subject to a minimum of Rs.3 crore.

For profits above Rs.500 crore, the CSR allocation would be 0.5-2 percent of the net profit.

National CSR Hub will undertake activities like nationwide compilation of data, creation of data base, advocacy, research and promotional activities.

The national hub at TISS will monitor projects which would be implemented in remote areas.

Sharit K. Bhowmik, professor of labour studies and dean of the school of management and labour studies at TISS, will be overall in charge of the hub.