The Union Minister of Ports, Shipping & Waterways and Ayush Shri Sarbananda Sonowal launched ‘Sagar Samajik Sahayyog’ – the new guidelines of Corporate Social Responsibility (CSR) by the Ministry of Ports, Shipping & Waterways. The new guidelines empower ports to undertake CSR activities directly. The event was also attended by Union Minister of State for Ports, Shipping & Waterways, Shri Shantanu Thakur & Union Minister of State of Ports, Shipping & Waterways, Shri Shantanu Thakur held here yesterday.
Speaking on the occasion, the Union Minister, Shri Sonowal said, “We remain firmly committed to the idea of minimum government, maximum governance. The renewed guidelines for Corporate Social Responsibility activities allow our ports to initiate, undertake and expedite projects for community welfare through a framework where local communities can also become partners in development & change.
CSR has the ability to become a major agent of change in a location or in an activity to bring positive change in the lives of the people. Under the dynamic leadership of Prime Minister, Shri Narendra Modi ji, we are striving towards empowering our people, and our institutions in a way that caters to the needs of the community as well as makes the community a partner in the process of change & progress India to become Atmanirbhar”, the Minister added.
Ports with an annual turnover of less than ₹100 crores to spend 3-5%, less than ₹500 crores to spend 2-3% and more than ₹500 crores to spend 0.5-2% of their net annual profit
The new CSR guidelines unveiled yesterday will impact projects and programmes relating to activities specified in Section 70 of the Major Port Authorities Act, 2021. For the purpose of planning and implementing CSR projects, a Corporate Social Responsibility Committee shall be constituted in each major port. The Committee shall be headed by the Dy. Chairperson of the Major Port and shall have 2 other Members. Each major port shall prepare a Corporate Social Responsibility Plan for every financial year, and integrate its CSR in Business Plan with the social and environmental concerns related to the business of the entity.
CSR Budget will be mandatorily created through a Board Resolution as a percentage of net profit. A port with an annual net profit of ₹100 crores or less can fix between 3% – 5% for CSR expenses. Similarly, ports with a net profit between ₹100 crores to ₹500 crores annually, can fix their CSR expenses between 2% and 3% of their net profit, subject to a minimum of ₹3 crores. For ports, whose annual net profit is above ₹500 crores per year, the CSR expenses can be between 0.5% and 2% of its net profit. 20% of CSR expenses must be earmarked to Sainik Kalyan Board at the district level, National Maritime Heritage Complex and National Youth Development Fund.
78% of funds should be released for the social & environmental welfare of the community in areas like drinking water, education, vocational training, skill development, electricity through non-conventional & renewable sources, health & family welfare, promotion of livelihood for economically weaker section of society, community centres, hostels etc. A sum of 2% of total CSR expense has been earmarked for monitoring of the projects under the CSR programmes by the Ports.
Disclaimer: This is an official press release by pib.