Private companies should spend 2% on CSR: Rajasthan Legislative Assembly Speaker

Rajasthan Legislative Assembly Speaker Kailash Meghwal on Monday said the private companies working in the state should spend two per cent of their profit on Corporate Social Responsibility (CSR), and asked MLAs to ensure proper utilisation of funds for the purpose.

Under the Companies Act, 2013, there was a provision of spending 2% of profit on CSR by every company doing business, the Speaker said during a MLAs' workshop here.

As per an estimate, the companies in Rajasthan had to spend Rs 25,000 cr on CSR, and of which Rs 5,000 cr have been spent already, he said.

MLAs should get well versed with the Companies Act and ensure that the CSR funds were being spent in right cause of public, he said.

Speaking on the occasion, Deputy Speaker Rao Rajendra Singh also advised MLAs that they must know the Companies Act's provisions and supervise development works through industrial activities in the constituencies.

Newer or up coming industries should also ensure pollution free environment while setting up units, Dy-Speaker said.

Shyam Agrawal, Central member of Indian Companies Secretary Institute and workshop director, said Public Representatives (MLAs) should work as a link between companies and CSR works, Agrawal opined.