After seeking 30 per cent of the annual profit before tax (PBT) of its public sector enterprises (PSEs) to fulfil their corporate social responsibility (CSR), the Narendra Modi Government now proposes to rope in private corporate houses and industry associations to undertake CSR activities across the state.

The proposal is contained in a draft industrial policy prepared by the State Industries Department. The Government is expected to announce its new industrial policy before the Vibrant Gujarat Global Investors’ Summit which is slated for January 12-13, 2009, according to a senior official in the Industries Department. The chapter on “Corporate Social Responsibility” in the draft document says, “By and large corporates undertake CSR activities. However, the efforts are scattered and dispersed because of which the outcome is not visible to the public at large. (Hence) there is a need to synergise CSR activities with government initiatives to ensure better visibility, sustainability and outcome.”

The document proposes that the corporate houses and industry associations may take specific welfare activities in villages, cluster villages and also at the taluka/district-level. The area to carry out such activities may be allocated by the Government, depending on the size/scale of operation of an industrial unit/corporate house/industrial association.

The Government has suggested that a committee consisting of director, CSR (of a company), an officer attached to the District Rural Development Agency (DRDA) and an officer nominated by the district collector be constituted. This committee may decide CSR activities, allocate funds provided by corporates and Government and monitor the progress of such activities. The corporate houses and industry associations may undertake various CSR activities, such as adopting primary and community health centres on the PPP model, supporting nutritional programmes in villages, enhancing capacities and reach of NGO services, enhancing technical competence and manpower (including vocational training), besides helping the Government implement sanitation and environment-related programmes.

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