The new amendment made by the Modi Government in the Companies Act is expected to facilitate faster channelisation of Rs 20,000 crore CSR budget, a major chunk of which will go into clean water and sanitation sector, which is in focus due to Swachh Bharat Abhiyan, industry experts said today.
"The latest amendment in the Companies Act 2013 with respect to the Corporate Social Responsibility (CSR) policy, which came into force from January 19, will provide the much needed growth fuel to CSR. The amendment will facilitate faster channelisation of Rs 20,000 crore CSR budget into a sector like clean water and sanitation," Aquakraft Projects Chairman Subramanya Kusnur told reporters here.
As per secondary data available, 16,200 companies are eligible for CSR at the rate of 2 per cent of their average net profit in the last three years, which adds up to Rs 20,000 crore. "Of this sum, around 45-50 per cent will find its way in the area of clean drinking water, hygiene and sanitation given the impetus of Swachh Bharat programme," he said.
Aquakraft Projects today rolled out its nationwide initiative called "Swacchagraha". Aquakraft was the first company to install a water ATM in Mumbai last year.
"Swacchagraha" is a scheme to provide clean water and sanitation to children. ISKCON Food Relief Foundation (IFRF) is Aquakraft's partner in the initiative to be funded by corporate donors under their CSR initiatives, NRIs, HNIs, NGOs and Trusts.
The Government has allowed companies to enter into collaboration with each other to engage in CSR under the new amendment.
"This clears the way for continuous flow of funds for social enterprises which earlier would have to approach individual corporate for CSR contribution," said Kusnur.
