The central public sector enterprises (CPSEs) will soon have to earmark up to 5 per cent of their net profit for social sector projects with the government proposing to issue corporate social responsibility (CSR) guidelines for the state-owned firms.
The Department of Public Enterprises (DPE) has prepared guidelines for the CPSEs to take up important CSR projects.
"We are having a discussion with Heavy Industries and Public Enterprises Minister Vilasrao Deshmukh for finalising the CSR guidelines. It is expected to be finalised within a month," DPE Secretary Bhaskar Chatterjee said.
The proposal, which was recently cleared by the Committee of Secretaries, will make it mandatory for CPSEs with net profits of up to Rs 100 crore to contribute 3-5 per cent, he said.
Those earning net profits of Rs 100-Rs 500 crore would contribute two to three per cent of the amount subject to a minimum of Rs 3 crore, while those with a net profit of Rs 500 crore and above would contribute 0.5-2 per cent.
The CSR would no more be confined to organising blood donation camps or some charity event.
The CPSEs would be obliged to take up specific projects to help people affected directly or indirectly by their businesses.