NEW DELHI: Mr Chandrajit Banerjee, Director General CII, welcomed Mr Sachin Pilots assurance that the Ministry of Corporate

Affairs will consider and work with the Finance Ministry in allowing the 2 per cent post tax CSR spend for offset under the IT provisions so that this expense did not tantamount to be another surcharge. The Ministers proactive measure on this front is very appreciable. While the comply or explain provision is part of the Bill, the Ministers initiative in getting a tax set off on the CSR spends, will come as a positive measure in boosting Industrys sentiment on this subject. Mr. Banerjee further mentioned that CII had all along maintained that mandatory provisioning of CSR expenses could actually be counterproductive. Indian Industry, according to various surveys, was already engaged in productive CSR activities which were not in the nature of merely writing cheques but have made true value additions to society. CII is happy that the Minister intends giving a free hand to Industry in working out and implementing their CSR initiatives and encouraging self-reporting of CSR activities, CII said in the statement. CII also welcomed the Ministers statement to involve industry in framing the Rules related to CSR provisions under the proposed Act, so that necessary flexibilities may be incorporated in its implementation.

n terms of the guidelines issued by the Department of Public Enterprises, GAIL has allocated an annual budget of 2% of the previous years Profit after Tax for CSR activities, which is effectively used for carefully chosen programmes. Socially useful programmes have been undertaken in GAIL since its inception in and around the areas adjoining its major work centres under the SCP/TSP Plan. But over the years, the scope of the CSR activities, the nature of programmes undertaken and the systems adopted for implementation of these programmes have been streamlined and strengthened and the work under SCP/TSP came under the wider scope of CSR. Today, CSR & sustainability development is accorded high priority in the organizational ethos and attempted to be interwoven in all the business activities and the projects that are being undertaken by the company. During the year 2010-11, the company has taken up programmes of a value of approximately Rs.57.5 Crs for implementation under the seven thrust areas, which include Community Development, Infrastructure, Healthcare/Medical, Skill Development/Empowerment, Educational Aids, Environment Protection, Drinking Water/Sanitation.

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