Sagar Samajik Sahayog: New CSR guidelines for ports in India unveiled
New Delhi, June 27, 2023
Ports in India will need allocate a specific percentage of their annual turnover for their corporate social responsibility projects
The Union Minister of Ports, Shipping & Waterways and Ayush, Sarbananda Sonowal, has unveiled the new corporate social responsibility (CSR) guidelines called 'Sagar Samajik Sahayog' by the Ministry of Ports, Shipping & Waterways. These guidelines aim to empower ports to address local community issues in a more cooperative and swift manner.
CSR funding guidelines
Under the new guidelines, ports in India will allocate a specific percentage of their net annual profit towards CSR activities. The CSR budget for ports will be based on their respective turnover for the year, the division will be as follows:
- Ports with an annual turnover of less than Rs 100 crores will spend 3-5 per cent on CSR,
- Ports with a turnover between Rs 100 to 500 crores will spend 2-3 per cent
- Ports with a turnover exceeding Rs 500 crores will spend 0.5-2 per cent.
Two per cent of the total CSR expenses will be dedicated to project monitoring by the ports in order to ensure effective implementation and monitoring of the respective CSR projects.
This system aims to ensure that ports of all sizes contribute to community welfare initiatives.
Establishing a CSR committee
Each major port will establish a corporate social responsibility committee, headed by a deputy chairperson, to plan and implement CSR initiatives. The committee will consist of two other members. CSR projects must be implemented into the business plans of major ports, addressing social and environmental concerns related to their operations. A corporate social responsibility plan will also need to be prepared for each financial year, stated the ministry.
Types of CSR projects
The CSR projects and programmes will focus on activities specified in Section 70 of the Major Port Authorities Act, 2021.
The guidelines allocate specific portions of the CSR budget for various purposes. 20 per cent of the funds will be earmarked for the Sainik Kalyan Board at the district level, the National Maritime Heritage Complex, and the National Youth Development Fund.
The remaining 78 per cent will be directed towards social and environmental welfare projects benefiting the community. These projects include initiatives in areas such as drinking water, education, vocational training, skill development, renewable energy, healthcare, livelihood promotion, community centers, and hostels.
On the unveiling of the CSR guidelines, Union Minister Sonowal said, “We remain firmly committed to the idea of minimum government, maximum governance. The renewed guidelines for CSR activities allows our ports to initiate, undertake and expedite projects for community welfare through a framework where local communities can also become partners of development & change. CSR has the ability to become a major agent of change in a location or on an activity to bring positive change in the lives of the people.”
[The Business Standard]
