Cement, Energy and Environment
given to project have s pula on on CSR spend but concerned company is making profit. Case III In a situa on where big integrated projects viz. Includes manufacturing unit, power plant, railways and mines. What should manager do or how CSR spent would be calculated Case IV In a situa on where mining lease allo ed to one government or private company and it is bound to incur spend on CSR but it than engage another big company for mines development and opera on. So what will be the calcula on for CSR spend? Does it the profit of first company to whom lease allo ed, OR second company ie. MDO, OR both; and what if one in profit and another in loss OR both in loss. Because despite of profit and loss statement of companies community becomes a distress customer of social and environmental losses. Case V In a situa on where mines are independent and for open market trading. The calcula on of overall CSR expense should be done on taking account of EC condi on, mines plan, new CSR rule and as per provisions under DMFT. Case VI In a situa on where a well opera onal mines or MU gets closed a er few years of opera on. Who will repay for the future developmental benefits, which community lost due to shutdown (social, economic and environmental). And again who will compensate for their present/immediate loss (land, employment, common property resources and community investment on social, economic upli ment of family etc.). Is CSR role extended to this level to ensure social, economic and environmental sustainability of people? The first two situa ons seem to be simpler than other four. Here, case 1-5, indica ng confusion or overlap of budget in CSR budget calcula on for same geographic area and further alloca ons of budget on CSR at ground. Also it shows businesses major consciousness on; it would not happen more than s pulated norms and avoid duplica on of funds. While case -6 raised the concerns of social, economic and environment sustainability. Let's discuss these cases one by one Case I To make it clarify MOEF has released a memorandum; No. J- 11013/25/2014-IA. I; on dated 11/08/2014, gives guide line on these CSR and environment related issues to certain level. The point no. 5, of memorandum says "The concept of CSR as provide for in the companies Act. 2013 and covered under the companies (Corporate Social responsibility policy) Rules, 2014 comes in to effect only in case of companies having opera onal projects and making net profit as also subject to other s pula ons contained in the aforesaid act and Rules. The environment clearance given to a project may involve a situa on where the concerned company is yet to make any net profit and/or is not covered under the purview of the aforesaid Act and Rules. Obviously, in such cases, the provisions of aforesaid Act and rules will not apply. Case II Generally s pula on on CSR expenses in EC made for its project period and as some percent of project cost (may vary from 0.4% to 5%). A er commissioning if businesses are making profit in three preceding years then they have to spent as per new CSR rule, 2013 ie. @ 2% of average of three years of PBT. It is suggested that a er a enforcement of new CSR rule, 2013; instead of imposing flat rate (%) condi on on CSR spent for project period, EAC should ask to submit a well-designed CSR plan for project period and EAC should approve it. So it became obligatory cum voluntary. Case III For a cap ve project, companies has to obtain separate ECs for different project 40
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