Seven-page official circular just issued by the Union Corporate Affairs Ministry has widened Corporate Social Responsibility (CSR) of private sector companies by including their operation in sanitation, hygiene and health care for underprivileged forming main components. Under the new Companies Act enforced on April 1 this year, housing for Economically Weaker Sections (EWS) having the facility of toilets and clean potable water, disaster management, rural development, road safety and skill development of agriculture labour have been included in the CSR programmes.
Private sector companies and PSUs, having at least Rs5 crore net profit, or Rs1,000 crore turnover, or Rs500 crore net worth, now are required to spend at least 2% of their three-year annual average net profit towards CSR activities.
