Chandigarh: In a bid to streamline various CSR activities and to create a neutral platform involving all the stakeholders, the Punjab Cabinet on Friday approved the constitution of Punjab Corporate Social Responsibility (CSR) Advisory Board under the Chairmanship of the Chief Minister, as well as a CSR Authority under the Chief Secretary.
Disclosing this here today, a spokesperson of the Chief Minister’s Office said that the Board and Authority would ensure systematic channelization of CSR funds into the most needed sectors and projects, according to the developmental priorities of the state.
The Board would be constituted under the Chairmanship of the Chief Minister, with members including Health & Family Welfare Minister, Finance Minister, Industries and Commerce Minister, Chief Secretary, Administrative Secretary (Industries & Commerce, Administrative Secretary Finance, Director Industries and Commerce, besides maximum five representatives/experts from industry to be nominated by the chairman.
It has also been decided that the Board may co-opt any other Minister or officer, if necessary, as its members, with the Chief Minister authorised to take a decision in the matter.
The the Board would meet twice a year to review the CSR activities in the state, besides providing requisite guidance and advice to the Punjab CSR Authority for taking up appropriate CSR projects in the state.
The Punjab CSR Authority would consist of the Chief Secretary as its Chairman, with Administrative Secretaries (Industries & Commerce), Finance as its members, besides Chief Executive Officer (full time professional) as Member Secretary. The Chairman, CII Punjab Chapter, Chairman FICCI Punjab Chapter, Chairman PHD Chamber, Chairman ASSOCHAM Punjab Chapter and any other institution/individual as decided by the Authority/Government of Punjab would be invitees. The authority may also co-opt any other officers as may be necessary as its Members.
Notably, under Section 135 of the Companies Act, 2013, all the Companies, having net worth of Rs.500 crore or more, or a turnover of Rs.1000 crore or more, or net profit of Rs.5 crore or more during any financial year are expected to set aside and spend in every financial year 2% of the average net profits during the three immediately preceding financial years towards Corporate Social Responsibility (CSR) activities as mentioned schedule VII of the Act.