CSR Rules Finalised After Extensive Consultations - Sachin Pilot

Notifications were issued here today to give effect to Section 135 and Schedule VII of the Companies Act, 2013, which relate to CSR (Corporate Social Responsibility) related spending by companies. Shri Sachin Pilot, Minister for Corporate Affairs, has said that the concerned rules have been finalised after extensive consultations with all stakeholders. He elaborated that the Rules provide for the manner in which CSR Committee shall formulate and monitor the CSR Policy, manner of undertaking CSR activities, role of the Board of directors therein and format of disclosure of such activities in the Board’s report.

After issuance, the Notifications have been sent for publication in the Official Gazette. They are available on the website of the Ministry of Corporate Affairs and would be effective from 1st April, 2014.

The following important new activities have been included in Schedule VII:

(a) Promoting preventive health care and sanitation and making available safe drinking water;

(b) Setting up homes and hostels for women and orphans; setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups;

(c) Ensuring ecological balance, protection of flora and fauna, animal welfare, agro-forestry, conservation of natural resources and maintaining quality of soil, air and water;

(d)  Livelihood enhancement projects;

(e) Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional arts and handicrafts;

(f) Measures for the benefit of armed forces veterans, war widows and their dependents;

(g) Training to promote rural sports, nationally recognised sports, paralympic sports and Olympic sports;

(h) Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government;

(i)   Rural development projects.