Corporate Affairs Minister Sachin Pilot today said the industry would be free to choose CSR programmes and strategies best suited to their company's philosophy and businesses.
Speaking at the 'National Summit on CSR' organised by industry body CII here, Pilot said the government would adopt a "flexible approach" on CSR (Corporate Social Responsibility) which is now part of the new companies law.
"Industry would be free to choose programmes and strategies best aligned to their corporate philosophy and businesses," he said.
Further he assured the industry that the government would "not apply any rules with retrospective effect".
According to Pilot if CSR spending reaches the desired objective one would be able to see tangible results.
In monetary terms, it is estimated that the CSR provision would lead to anything from Rs 19,000-25,000 crore annual investment in the country's social sector.
Talking about CSR, Ministry of Corporate Affairs Additional Secretary M J Joseph said that "when it came to embedding CSR into business strategy, the execution andmainstreaming of strategy was of paramount importance."
CII National Council on Development Initiatives Chairman Rakesh Bharti Mittal said that government norm mandating three-year track record required for an NGO or foundation to receive funding be relaxed in the event that a foundation belongs to a reputed company.
The new Companies Act makes it mandatory for profit making companies reporting Rs 5 crore or more profits in the last three years to spend at least 2 per cent of their average profits towards CSR activities.