About 100 corporate houses and organisations engaged in the wp space are expected to attend the conference hosted by the state Governor Chennamaneni Vidyasagar Rao at Raj Bhavan on the evening of January 8. The state government of Maharashtra is all set to talk and guide corporate firms to spend their Corporate Social Responsibility (wp) funds effectively in the needy areas and avoid duplication of projects.
The wp Journal was the first to publish this news on November 23.
Sudhir Mungantiwar, minister of finance, planning and forests with his team and the state Governor have decided on nine priority areas like Swachha Bharat, skill development, forests, renewable energy among few others. The government wants money to be used for projects in a more efficient way by avoiding duplication of projects.
“The government would act as enablers by identifying the relevant areas of development and help the organisations to invest in not only causes they believe in but also to the growth of the state. We welcome all the corporate firms whose participation will encourage the collective initiatives to bring socio-economic change in the state of Maharashtra through wp activities in focused and measureable manner,” says Mungantiwar.
The conference aiming at optimisation of effects of wp spending is supported by KPMG India as the knowledge partners for the event.
Underlining the purpose of the event, Narayanan Ramaswamy, Head and Partner Social Sector Practice, KPMG in India, says, “To help implement the wp regulation in its true spirit it is very important that the corporates are aligned with the existing government programs and agenda in this direction. Towards this, it is a great initiative by the Government of Maharashtra to invite corporates and showcase their existing and proposed programs in those areas suggested for mandatory corporate wp spending. This will help corporates get a better understanding of the larger and deeper programs by the government and look at synergizing their wp programs.”
Maharashtra being a hub of various corporate houses the saw highest wp funds being spent in the state in the first year of law’s implementation. The government wants money to be used for projects in a more efficient way by avoiding duplication of projects.
The Government may also form a team that will facilitate and assist corporate firms and point them in the right direction so as to focus on the marginalized and under privileged and maximise impact.
The new Companies Act, 2013 lays down every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall spend at least 2% of their average net profits. But not all companies have followed the rule in its first year.
According to Schedule VII of The Companies Act 2013, Swachh Bharat, hunger and poverty eradication, malnutrition, sanitation, employment, education, environment sustainability, conservation of natural resources, healthcare services training to promote sports, etc are considered as valid wp spending areas.