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The Centre is keen to take industry on board on the vexed issue of corporate social responsibility (CSR) before moving amendments to the Companies Bill in Parliament.
The Government is looking to make CSR mandatory for companies and the level of spend is likely to be mandated at two per cent of net profit. Minister for Corporate Affairs Sachin Pilot said that he will meet captains of industry in the Capital on Tuesday.
This will be his first meeting with industry after assuming charge as Corporate Affairs Minister (independent charge).
“The two per cent norm will stay and be part of the Bill. CSR spend will be mandatory, but it will be through self-compliance,” Pilot told Business Line after launching BL on Campus , which is college edition of the paper.
The Government is likely to keep itself away from the nitty-gritty of the spends, but ensure safeguards. The proposals on CSR (in the Companies Bill) had received mixed response from industry, with some sections keen to ensure that CSR is not made mandatory.
Confederation of Indian Industry (CII) will be represented at Tuesday’s meeting by past President Sunil Kant Munjal. Federation of Indian Chambers of Commerce and Industry (FICCI) will be represented by Siddharth Birla, who is Vice-President of the chamber.
The Companies Bill 2011 in the present form specifies that companies “shall make every endeavour to ensure” that the stipulated percentage of sum is spent on CSR.
But Standing Committee on Finance headed by BJP leader Yashwant Sinha had in its report recommended that CSR should be made mandatory for companies.
It had called for modifications in the language of the Companies Bill 2011 so as to “ensure” that corporates spend two per cent of their net profit on CSR activities.
Companies Bill
Pilot said that the Government is keen to get the Companies Bill enacted in Parliament in the ongoing Winter Session.
He has already written to Parliamentary Affairs Minister Kamal Nath to ensure that this Bill forms part of the legislative agenda.
The Government has readied nearly 100 amendments to be moved in Parliament, it is learnt.
As much as 95 per cent of the recommendations of the Standing Committee on Finance have been accepted by the Government, sources said.
srivats.kr@thehindu.co.in
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