The Ministry of Ports, Shipping & Waterways, under the leadership of Union Minister Sarbananda Sonowal, has introduced a set of new corporate social responsibility (CSR) guidelines called ‘Sagar Samajik Sahayog.’ These guidelines aim to enable ports in effectively addressing local community issues in a collaborative and efficient manner.
Establishment of Corporate Social Responsibility Committee:
To ensure effective planning and implementation of CSR projects, each major port will constitute a Corporate Social Responsibility Committee. This committee will be responsible for strategizing and executing CSR initiatives aligned with the social and environmental concerns related to the port’s business.
Integration of CSR in Business Plan:
Under the new guidelines, each major port will prepare a Corporate Social Responsibility Plan for every financial year. It will integrate CSR activities with the overall business plan of the port, emphasizing the social and environmental aspects of the port’s operations. This integration ensures a holistic approach towards CSR implementation.
Allocation of CSR Funds:
The new CSR guidelines require ports in India to allocate a specific percentage of their net annual profit towards CSR activities. The allocation will be based on the turnover of each port for the year. This approach ensures that CSR efforts are proportionate to the financial capabilities of the ports.
Different Slabs for CSR Expenses:
The guidelines establish different slabs for CSR expenses based on the annual net profit of the ports. Ports with an annual net profit of Rs 100 crores or less can allocate between 3% to 5% for CSR expenses. For ports with a net profit between Rs 100 crores to Rs 500 crores annually, CSR expenses can range between 2% and 3%, with a minimum of Rs 3 crores. Ports with a net profit above Rs 500 crores per year can allocate between 0.5% and 2% of their net profit for CSR activities.
Emphasis on Key Areas:
The new CSR guidelines highlight specific areas where a portion of the CSR expenses must be earmarked. 20% of CSR expenses should be allocated to the Sainik Kalyan Board at the district level, National Maritime Heritage Complex, and National Youth Development Fund. This allocation ensures support for the welfare of armed forces personnel, preservation of maritime heritage, and the development of youth.
Understanding Corporate Social Responsibility:
Corporate Social Responsibility refers to a corporate initiative aimed at assessing and taking responsibility for the company’s impact on the environment and social welfare. In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013. It applies to companies meeting specific financial thresholds.
CSR Activities:
CSR activities encompass a wide range of initiatives aimed at promoting social welfare and environmental sustainability. Some common CSR activities include the promotion of education, gender equality, poverty eradication, healthcare initiatives, environmental conservation, and support for maternal and infant health. Contributions to the Prime Minister’s National Relief Fund are also encouraged as part of CSR efforts.
