Himachal: In 3 years, 23 BBN industrial units spent Rs 61 cr on CSR activities
Pratibha Chauhan
Shimla, March 26
Even as the state government has practically no control over the amount being spent by industrial houses having their units in Himachal on various development works under the Corporate Social Responsibility (CSR), yet the accrual funds can help in contributing to public welfare.
As per the data compiled by the Industries Department, a total of Rs 61.35 crore has been spent by 23 industrial units located in the Baddi-Barotiwala-Nalagarh (BBN) area in the past three years i.e. from 2021 to 2023. Being a hill state with not too many units, the industrial belts are confined to the fringes, including BBN in Solan, Kala Amb and Paonta Sahib in Sirmaur and Mehatpur in Una.
The highest contributor has been Luminous Power Technologies Private Limited, having spent Rs 8.39 crore in the past three years. Similarly, Colgate Palmolive Limited has spent Rs 8.32 crore, followed by Rs 6.02 crore by ITC Limited, Rs 5.90 crore by Vardhman Textiles and Rs 5.64 crore by Cipla Limited.
Baddi has emerged as a major pharma hub of Asia with most big names in the pharmaceutical industry having their units here. These units meet almost 35 to 40 per cent of the total pharma demand of Asia.
From time to time, NGOs and social organisations have raised the issue of ensuring proper utilisation of the money under the CSR. But as per norms, the state government has practically no control over its monitoring or implementing the schemes under the CSR. The norms for the CSR spending on development works differ from company to company and those falling under the provisions of the Corporate Social Responsibility Act-2013 prepare their policy, which is approved by the committee of the board under Section 135 of the Act.
The officials of the Industries Department point out that as per a circular issued by the Ministry of Corporate Affairs on June 3, 2020, it has been pointed out that the state must refrain from issuing guidelines or orders that may affect the independence and decision-making process of the CSR committee of a company.
The improper CSR spending, especially by mega hydropower projects, has been a major bone of contention between the producers and the local population. With the locals not having any say in the CSR spending, this has become a reason for major confrontation. While the locals assert that the money must be spent as per their requirement, be it on setting up of schools, dispensary, road or other specific needs but neither they nor the state government has any say on this issue.
As per norms, any company having a big turnover has to spend 2 per cent of its average net profits for the preceding three years on Corporate Socaial Responsibility. However, there is always a dispute over this as the state government has no power to monitor it. On many occasions, the issue has been raised in the Vidhan Sabha to give voice to the sentiments of the local community living in the vicinity of industrial units or power projects.
