Bring CSR funds under purview of state govt: Industry min to CM

Raipur: Commerce and Industry minister Lakhanlal Dewangan has written a letter to chief minister Vishnu Deo Sai, asking that the Corporate Social Responsibility (CSR) funds should fall under the purview of the state govt and should be utilized through the state.
He has requested the CM to communicate with the centre, in order to implement the required modifications in the regulations and include the CSR fund under the supervision of the state government.
The CSR funds were managed by the state govt when former chief minister Raman Singh was in office. However, this practice was discontinued after certain amendments were made, as stated by the industry minister to TOI.
“I have written to our chief minister Vishnu Deo Sai, urging him to write to the central government regarding the CSR funds. If necessary, modification to the rules can be done for proper utilization of the funds in the state,” Dewangan said.
Currently, companies engage in CSR activities according to the requests of the local community. As a result, the state government does not receive the funds, nor do they have any control over how they are allocated. This issue was also raised in the state assembly by BJP legislators, he said. I felt the need to bring the CSR funds under the purview of the state government when questions were raised in the Assembly, he added.
The letter to the CM emphasizes on the need for coordination with the central government to transfer the authority of expenditure and construction work funded by CSR to the state government. He pointed out that the government lacks information on the expenditure from the CSR fund.
It is important to mention that according to the current Company Act, industries themselves manage the utilization of CSR funds.
The industry minister stressed that managing CSR expenditures at the govt level would improve essential facilities for individuals impacted by industries.
Numerous projects could be initiated for individuals in tribal areas, rural, urban, and semi-urban regions. Moreover, it would assist in offsetting environmental harm. Clear policies and regulations are necessary concerning the expenditure and construction activities funded by CSR.