Home Uncategorized Maharashtra govt to meet corporates on January 8 to discuss CSR spending

Maharashtra govt to meet corporates on January 8 to discuss CSR spending

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Maharashtra government is gearing up to get Corporate Social Responsibility (wp) funds spent in a more efficient way from the coming annual year. State government officials would hold a meeting with 100-120 top corporate houses on January 8, 2016 at Raj Bhavan.

The meeting aims to show corporate firms certain social areas that need attention. “We have identified certain sectors where money is needed. We would guide the corporate firms towards them and appeal them to concentrate there in terms of their wp. At the meeting, needs of each social area would be backed up by a presentation with specifications like precise areas of work, geographical locations, statistics, estimated costs etc,” says Sudhir Mungantiwar, Finance Minister of Maharashtra.

State Governor Chennamaneni Vidyasagar Rao is actively involved to get wp exposure to these concerned social areas of necessity and would attend the meeting at Raj Bhavan in the presence of chief minister and finance minister. Ministry with the governor have decided on about seven major areas of need like Swachh Bharat, skill development, forests, renewable energy among few others.

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.

Talking to The wp Journal, Mungantiwar who also holds planning and forest portfolios adds, “We cannot force companies to spend their money in a certain way. But we want to avoid duplication of projects so as to optimize use of resources. So we would direct companies to the areas with estimated cost details. For example, if we need to build toilet blocks in 100 schools under Swachh Bharat, we would appeal them to take up the task and they can choose to build toilets. Our role would be limited to directing them towards the need areas.”

Government may also form a team that would follow up with corporate firms and motivate them to focus on the needy sections of society with regular follow ups.

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.