As per the Amendment to Section 135 and schedule 7 of the Companies Act 2013, private companies with at least Rs.5 Crore net profit or Rs.1000 Crore turn over or Rs.500 Crore net worth are mandatorily required to spend at least 2% of their net profit on Corporate Social Responsibility (CSR) activities. Since then, a large number of eligible companies are now funding various kinds of CSR activities either through existing NGOs or through in house teams. In Telangana, most of IT Companies and few other large manufacturing companies in Pharma, Defence, General Engineering etc are coved under this.
2. Experience of last 2 years shows that the CSR activities can create better impact if they are coordinated properly and are aligned better with the priorities of the Government.
3. It is therefore proposed that a Joint Working Group be created having representatives from Government and Industry Association as follows:-
1) Secretary, Industries & Commerce Department
2) Secretary, ITE&C Department
3) Collectors of Hyderabad, Ranga Reddy and Medak Districts
4) Representatives of the following five Industry Associations:-
4. The responsibility of the Joint Working Group will be as follows:-
a. To review the existing CSR activities of various companies.
b. To present important Government priorities before the Industry to enable alignment of CSR activities with Government priorities.
c. To provide Government support to the CSR work of private companies wherever needed.
d. To synergise CSR activities of private companies working in the same areas.
e. To document best practices and highlight them in appropriate forums.
f. To recognise best performance in CSR by Companies and institute awards on behalf of the Government.
5. Secretary, ITE&C will be the Convenor of the Joint Working Group. The Group should meet at least once every quarter and its findings and recommendations should be shared with the Government and all Industry
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF TELANGANA)