Swacch Bharat and Clean Ganga: Within the CSR Ambit

Swacch Bharat and Clean Ganga: Within the CSR Ambit

Two notable Modi government initiatives have now come under the CSR ambit namely the Swacch Bharat Abhiyan and the Clean Ganga initiative. Any funds contributed towards these will now be regarded as social welfare spending. Following amendments to the Companies Act, the Corporate Affairs Ministry has also declared the formation of the 'Swacch Bharat Kosh' and the 'Clean Ganga Fund'. Both of these will now come under the CSR framework.

Swacch Bharat Kosh has been set up for attracting funds from numerous entities including corporates and large companies for activities associated with this cleanliness initiative. Meanwhile, the Clean Ganga Fund is aimed at cleaning up the holy river through contributions from leading companies.

These two initiatives are the latest to be brought under the CSR ambit wherein contributions to the PM's National Relief Fund have already been included in CSR. Through the means of a notification, the Corporate Affairs Ministry has inserted the worlds “including contribution to the Swacch Bharat Kosh set up by the central government for the promotion of sanitation” in Schedule VII of the Act pertaining to CSR activities. Apart from this, the words “including contribution to the Clean Ganga Fund set up by the central government for rejuvenation of river Ganga” have also been added to the Schedule.

Schedule VII includes "contribution to the Prime Minister's National Relief Fund or any other fund set up by the Central Government for socioeconomic development and relief and welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women".

Certain categories of profitable companies will have to given at least 2% of their 3 year average annual net profit towards CSR activities. This provision is part of the new Companies Act and it came into effect from April 1 this year during the tenure of the UPA government. The norms are applicable for companies that have at least INR 5 crore net profit, INR 1000 crore turnover or a net worth of INR 500 crore. These companies will have to focus on spending 2% of their 3 year average profits as specified by the amendment to the Companies Act.

Livelihood enhancement and rural development projects are some of the important areas where CSR could also work wonders. Apart from sanitation and cleanliness, unemployment is also a big concern nowadays as the job market is competitive. Skill based training and providing grounding in entrepreneurial skills will go a long way towards job creation. Health is another area where a lot of changes are needed. The establishment of basic health infrastructure is an area which needs to be looked into as well. Given the advent of deadly diseases such as Ebola, proper healthcare infrastructure is critical. Promotion of India's national heritage and cultural legacy also come under the ambit of CSR. A lot remains to be accomplished in these areas as of now.