New CSR guidelines is an attempt to empower ports to address issues of local communities in a more cooperative & swift manner: Shri Sonowal

Newdelhi:27/6/23:The Union Minister of Ports, Shipping & Waterways and Ayush Shri Sarbananda Sonowal launched ‘Sagar Samajik Sahayyog’ – the new guidelines of Corporate Social Responsibility (CSR) by the Ministry of Ports, Shipping & Waterways. The new guidelines empower ports to undertake CSR activities directly. The event was also attended by Union Minister of State for Ports, Shipping & Waterways, Shri Shantanu Thakur & Union Minister of State of Ports, Shipping & Waterways, Shripad Yesso Naik held here today.

Speaking on the occasion, the Union Minister, Shri 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. Under the dynamic leadership of Prime Minister, Shri Narendra Modi ji, we are striving towards empowering our people, our institutions in a way that it caters to the needs of the community as well as make community a partner in the process of change & progress India to become Atmanirbhar”, the Minister added

.The new CSR guidelines unveiled today will impact projects and programmes relating to activities specified in Section 70 of the Major Port Authorities Act, 2021. For the purpose of planning and implementing CSR projects, a Corporate Social Responsibility Committee shall be constituted in each major port. The Committee shall be headed by the Dy. Chairperson of the Major Port and shall have 2 other Members. Each major port shall prepare a Corporate Social Responsibility Plan for every financial year, and integrate its CSR in Business Plan with the social and environmental concerns related to the business of the entity

.CSR Budget will be mandatorily created through a Board Resolution as a percentage of net profit. A port with an annual net profit of ₹100 crores or less can fix between 3% – 5% for CSR expenses. Similarly, ports with a net profit between ₹100 crores to ₹500 crores annually, can fix its CSR expenses between 2% and 3% of its net profit, subject to a minimum of ₹3 crores. For ports, whose annual net profit is above ₹500 crores per year, the CSR expenses can be between 0.5% and 2% of its net profit. 20% of CSR expenses must be earmarked to Sainik Kalyan Board at district level, National Maritime Heritage Complex and National Youth Development Fund. 78% of funds should be released for the social & environmental welfare of the community in areas like drinking water, education, vocational training, skill development, electricity through non-conventional & renewable sources, health & family welfare, promotion of livelihood for economically weaker section of society, community centres, hostels etc. A sum of 2% total CSR expense has been earmarked for monitoring of the projects under the CSR programmes by the Ports.