New Delhi, June 30, 2023: In a recent move to promote sustainability and inclusivity in Indian ports, the Ministry of Ports, Shipping & Waterways has launched new Corporate Social Responsibility (CSR) guidelines for ports. The purpose of the new guidelines, named ‘SagarSamajikSahayyog,’ is to empower ports to directly undertake CSR activities.
During the announcement of the new guidelines, Sarbananda Sonowal, Union Minister of Ports, Shipping & Waterways and Ayush, stated to the PIB, “We remain firmly committed to the idea of minimum government, maximum governance. The renewed guidelines for CSR activities allows our ports to initiate, undertake and expedite projects for community welfare through a framework where local communities can also become partners of development & change. CSR has the ability to become a major agent of change in a location or on an activity to bring positive change in the lives of the people. Under the dynamic leadership of Prime Minister, Shri Narendra Modi ji, we are striving towards empowering our people, our institutions in a way that it caters to the needs of the community as well as make community a partner in the process of change & progress India to become Atmanirbhar.”
The new CSR guidelines will impact CSR programmes related to activities specified in Section 70 of the Major Port Authorities Act, 2021. Each major port will be required to form a Corporate Social Responsibility Committee, headed by the Deputy Chairperson of the Major Port, to plan and implement CSR initiatives. The committee will also include two other members. According to the guidelines, all major ports need to prepare a Corporate Social Responsibility Plan for each financial year, integrating it within the Business Plan to address social and environmental concerns related to the entity’s business.
Under the new rules, the allocation of funds for Corporate Social Responsibility will be made mandatory based on a percentage of the net profit. Ports with an annual net profit of up to Rs 100 crores can allocate a CSR budget between 3% and 5%, while ports with a net profit between Rs 100 crores to Rs 500 crores annually can allocate a CSR budget between 2% and 3%. Furthermore, ports with an annual net profit above Rs 500 crores can set a CSR budget between 0.5% and 2% of the net profit.
