CPSEs expenses on Uttarakhand relief work to be treated as CSR

NEW DELHI: In order to encourage state-run PSUs to undertake rehabilitation work in the flood affected areas of Uttarakhand, the government today said such expenses would be treated as corporate social responsibility (CSR) activities.

The Central Public Sector Enterprises (CPSEs) can spend more than the prescribed limit of 5-10 per cent of their annual budget for CSR and sustainability activities earmarked for natural calamities or disaster.

"...this means that the CPSEs can now spend more funds on this account," an official statement said.

Minister of Heavy Industries & Public Enterprises Praful Patel urged various ministries and departments to issue directions to the Central Public Sector Enterprises working under their administrative control to take up relief activities in Uttarakhand under their CSR and sustainability activities.

"The relief and rehabilitation projects undertaken in Uttarakhand during 2013-14 by the CPSEs would be treated as the projects in the backward region and would also qualify for the purpose of MoU evaluation," it said.

Accordingly, the Public Enterprises department has issued an office memorandum which states that the relief and rehabilitation projects undertaken in Uttarakhand during 2013-14 by the CPSEs would be treated as the projects in the backward region and would also qualify for the purpose of MoU Evaluation.

"The memorandum also states that the contributions made by the CPSEs towards Prime Minister's/ Chief Minister's Relief Fund and/ or National Disaster Management Authority would count as valid CSR and sustainability activities," it added.

Under MoUs, CPSEs specify their performance targets in the ensuing financial year.