The Government of India (GoI) has announced new corporate social responsibility (CSR) guidelines in an effort to serve the needs of the regional communities residing close to the ports.
The endeavor will make the ports not just sustainable workplaces, but also motivate them to follow the ESG framework that aligns with the UN SDGs for Good health and well being, Clean water and sanitation, Good health and well-being, Affordable and clean energy and Sustainable cities and communities.
The goals of the guidelines are to meet the needs of the local communities and incorporate them into society.
The bracket:
According to the guidelines, a board resolution must be used to establish a CSR Budget that represents a portion of net profit. These have additionally been bracketed as follows:
1. A port may set between 3% and 5% for CSR expenses if its annual net profit is $100 crores or less.
2. Ports with a net profit of $100 million to $500 million per year may set their CSR expenses at 2% to 3% of their net profit, or a minimum of $3 million.
3. Ports can dedicate 0.5% to 2% of their net profit to CSR if their annual net profit exceeds 500 crores.
Distribution:
The ports must set aside money from their CSR budget for the following kinds of activities:
i. 20% of district-level Sainik Kalyan Board, National Maritime Heritage Complex, and National Youth Development Fund CSR costs
ii. 78% for the community’s social and environmental well-being in areas like clean water, education, career development, skill improvement, electricity from non-conventional and renewable sources, health & family welfare, support for those who are less fortunate economically, community centres, hostels, etc.
iii. 2% for the oversight of projects carried out as part of CSR programmes.
Ownership:
The Major Port Authorities Act of 2021’s Section 70 has specific activities that will be impacted by the new CSR guidelines’ projects and programmes. A CSR committee must be established in each port to plan, carry out, and track the projects’ progress. According to a PIB statement, the Committee will be led by the deputy chairperson of the major port and will consist of two additional members. According to the statement, every major port must create a corporate social responsibility plan for each fiscal year and incorporate social and environmental considerations into its business plan.
“The CSR guidelines allow our ports to initiate, undertake, and expedite projects for community welfare through a framework where local communities can also become partners of development & change,” said Sarbananda Sonowal, the Union Minister of Ports, Shipping & Waterways, and Ayush, who also announced the new guidelines. “CSR has the potential to play a significant role in driving change in a place or on an activity to improve the lives of the populace,” he said.
