Complaining that the norms prescribed in the mandatory CSR contribution clauses of new Companies Act are skewed towards Central government schemes, the state-owned Odisha Mining Corporation (OMC) today said, it would divert most of its contributions to state specific schemes.
“It seems the rules regarding donation as part of CSR schemes are biased towards national purposes, and not towards state plans. We propose to donate the funds more for state specific schemes,” said Saswat Mishra, Chairman-Cum-Managing Director of OMC while speaking at a seminar called New Company Act & CSR Symposium 2014, organised by Indian Chamber of Commerce (ICC), here.
Schedule Seven of the newly introduced Companies Act, 2013 says corporates can give their contribution to the Prime Minister's National Relief Fund or any other fund set up by the Central government for socio-economic development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes and other backward classes etc.
The schedule also says that corporates can donate to Chief Minister’s Relief fund as well.
OMC said it would provide donations for welfare schemes floated by the state government.
“We will support state specific welfare schemes, not covered under the the Schedule Seven. We will support welfare schemes for tribals, schemes related to education and sports in less developed areas,” said Mishra.
For current financial year, OMC has decided to spend nearly five per cent of its profit towards CSR (Corporate Social Responsibility) activities. In 2013-14, the state-run miner earned a profit of Rs crore, as per provisional estimates.
