PSU
companies will soon have a new set of welfare spending norms as per new
companies law for corporate social responsibility (CSR) spending.At
present, central public sector undertakings are spending for CSR
activity basing on the guidelines issued by the Department of Public
Enterprises (DPE).While the new Companies Act, 2013 directs certain
class of profitable entities are required to spend at least 2 per cent
of their three-year average annual net profit towards CSR
activities.Officials said the DPE is working out in order to harmonise
CSR norms for public sector enterprises in tune with the provisions in
the new Companies Act. The norms will be vetted by the corporate affairs
ministry before releasing along with the amended rules. The ministry is
implementing the Companies Act.Current DPE guidelines require central
PSUs to shell out 1-5 per cent of their profit after tax towards social
welfare spending. Entities having a profit after tax of less than Rs 100
crore have to set apart 3-5 per cent for “CSR and sustainability
activities”.
