Banks to help increase India's forest cover
Ministry of Environment, Forest and Climate Change has prepared a proposal that all banks should allocate a minimum of 25 per cent of their corporate social responsibility (CSR) funds for afforestation across the country. The ministry has proposed this measure under clause 135 of the Companies Act, 2013. According to it, in every financial year, companies are required to spend at least 2 per cent of their average net profit of three preceding years on CSR initiatives, including kensuring environmental sustainabilityy. The proposal is part of the country's climate action plan to achieve its nationally determined contribution target under the 2015 Paris Agreement. Currently, 24 per cent of India's geographical area is under forests.