To ensure corporates' compliance with CSR norms, the government has set up a six-member high level panel to suggest steps for improved monitoring of social welfare activities done by them under the companies law.
Certain class of profitable companies are required to shell out at least 2 per cent of their three-year average annual net profit towards Corporate Social Responsibility (CSR) activities.
The panel, chaired by former Home Secretary Anil Baijal, would suggest "measures for improved monitoring of the implementation of CSR policies by the companies".
Besides the chairperson, there are five members, including representatives from the industry, academia and civil society.
Professor (Emeritus) at Jawaharlal Nehru University Deepak Nayyar, Apollo Tyres Chairman and Managing Director Onkar S Kanwar, former Nasscom President Kiran Karnik, representatives from the Department of Public Enterprises and Corporate Affairs Ministry would be part of the committee.
According to a circular issued by the Ministry on Tuesday, the panel would recommend suitable methodologies for monitoring compliance of the CSR provisions.
It would also suggest measures to be recommended by the government for "adoption by the companies for systematic monitoring and evaluation of their own CSR initiatives".
The panel would identify strategies for monitoring and evaluation of CSR initiatives through expert agencies and institutions to facilitate "adequate feed back to the government with regard to the efficacy of CSR expenditure and quality of compliance" by the companies.
Further, the circular said the committee would look at whether a different monitoring mechanism is required for government companies undertaking CSR works. If it is found necessary, then necessary suggestions would be made.
The committee would submit its report within six months from the date of holding its first meeting, the circular said.
The Ministry and the Indian Institute of Corporate Affairs (IICA) would jointly provide the secretarial and technical support for the committee.
CSR norms came into effect from April 1 last year through the Companies Act, 2013, which is being implemented by the Corporate Affairs Ministry.
Going by estimates, about Rs 14,000 crore is expected to be spent towards CSR activities by companies in the current fiscal.
With regard to CSR activities, the performance of companies can be assessed only after the statutory annual returns on the same are filed and that are due after September this year.
