CSR rules amended to widen canvas for India Inc

The Centre has broad-based the entities available for carrying out corporate social responsibility (CSR) activities.

India Inc can now get CSR implemented through a foundation or trust or society set up by the Centre, State government or any entity established under the Act of Parliament or State legislature.

This could be done without having to worry about existence of three year track record in undertaking similar projects or programmes.

“We have widened the canvas for corporates. They need not bother about floating their own foundations or trusts or society for undertaking CSR. They can now use the vehicles set up by the Central, State governments or entities set up by an Act of Parliament or State legislatures to carry out CSR,” a senior corporate affairs ministry (MCA) official said.

There are many States, which have floated charitable foundations pursuing objects enshrined in the CSR legal framework, and these vehicles could now be utilised by companies for CSR implementation.

The latest rule change may also be helpful for corporate houses to reach out to remote areas where government floated society or trust or foundations are already working.

Reacting to this latest MCA move, SN Ananthasubramanian, a Practising Company Secretary, said that this liberalisation is indeed a welcome step.

“It will facilitate companies to undertake permitted activities through State-established entities of repute in particular spheres. This will also further enhance innovative collaborations in hitherto unexplored areas leading to improved social impact,” Ananthasubramanian told BusinessLine .

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