The government on Tuesday said the Central Public Sector Enterprises (CPSEs) can consider partnering with the private sector groups like the Tatas to execute their corporate social responsibility projects.
Many of the business houses have been doing CSR (Corporate Social Responsibility) for the last 40 years, Secretary in the Department of Public Enterprises Bhaskar Chatterjee said at a Standing Conference of Public Enterprises function.
"It would be worthwhile for the CPSEs to combine with the private firms or to share experience so that CPSEs need not reinvent the wheel," he said.
The Department of Public Sector Enterprises (DPE) has made it mandatory for the CPSEs to contribute a certain percentage of their net profits for executing the CSR projects, which need not be restricted to blood donation camps.
They should include projects like building
houses in the calamity hit areas. According to the DPE norms, the CPSEs with net profit of Rs 500 crore (Rs 5 billion) or more have to contribute 0.5-2.0 per cent for the CSR.
Those having net profit (NP) of Rs 100-Rs 500 crore have to shell out 2-3 per cent and the companies with less than Rs 100 crore (Rs 1 billion) of their net earnings have to contribute 3-5 per cent of the amount. Chatterjee said, the government-owned firms can also tie up with smaller units in implementing the CSR projects.
"They could also have partnerships with the small units with both the physical and financial involvement," he said.