Corporates to Pump in 14000 Crore

Corporates to Pump in 14000 Crore

New Delhi: Indian companies are expected to pump in close to Rs. 14000 Crores towards the Corporate Social Responsibility (CSR), said Finance Minister Arun Jaitley on Tuesday.

The amount is expected to increase in the years ahead. Under the new Companies Act, companies with a net worth of more than Rs 500 crore or a revenue of over Rs 1,000 crore or a net profit of more than Rs 5 crore need to spend at least 2% of the average net profit of the preceding three years on CSR activities.

Finance Minister Arun Jaitley

Corporate Social Responsibility is a management concept where companies integrate social and environmental concerns into their business operations and interactions with the stakeholders. This way companies are able to achieve a balance of social, economic and environmental imperatives.

“… CSR alone in its very first year is going to contribute about Rs 14,000 crore into the (social) sector and that’s reasonably a large amount of money. This is going to increase year after year as corporate profits increase,” quoted Finance Minister Arun Jaitley at a function organized by Jubilant Bhartia and Schwab foundations.

Finance minister Arun Jaitley speaking at the function organized by Jubilant and Schwab Foundations.

There are certain activities that are eligible for spending the revenue earned through CSR. The new government has added contributions to Swachh Bharat Fund and Clean Ganga Fund as eligible to be spent under this law.

The finance minister also quoted that the corporates have been a late entrant to the idea of charitable causes and that the best of Indian society is yet to be realized.