Companies need to form CSR panel, says Ranjan

LUCKNOW: Chief secretary Alok Ranjan has said that the board of directors of private and public sector companies with a net worth of Rs 500 crore or a turnover of Rs 1000 crore or net profit of Rs 5 crore need to form a corporate social responsibility (CSR) committee.

The step is meant to facilitate the Corporate Social Responsibility (CSR) activities in Uttar Pradesh.

He said that in addition to compliance with The Companies (Corporate Social Responsibility Policy) Rules 2014, this committee would recommend the amount of funds to be spent on CSR activities. The CSR fund will be utilised mainly in the fields of health, cleanliness, education, women empowerment, environmental sustainability, rural development and sports and slum area development among others.

Ranjan said that these directions had to be followed by private and public sector companies operating in the state. The chief secretary has issued these directives to streamline the philanthropic and welfare activities and to ensure more transparency and accountability in CSR activities through a circular.

He said that with the ever increasing demand in welfare schemes, the CSR seeks to address the problems of the society in a cost effective manner. He said that a number of large private and public sector companies are operating in Uttar Pradesh. These companies are already engaged in contributing to the development of the society in a big way.

He said that the government would develop database of projects suitable for the CSR to assist the companies in selection of social projects. Ranjan has directed for constitution of a 15-member high-level monitoring committee, headed by chief secretary with infrastructure and industrial development commissioner, principal secretaries of concerned departments along with director, industries and executive director, Udyog Bandhu as its members. This committee will meet every two months. Similarly, the chief secretary has ordered for formation of district-level committees under the chairmanship of the district magistrate with eight members to locally monitor and coordinate the execution of projects under the CSR activities.