Sagar Samajik Sahayyog

Sagar Samajik Sahayyog

• The Union Minister of Ports, Shipping & Waterways launched ‘Sagar Samajik Sahayyog’.
• It is the new guidelines of Corporate Social Responsibility (CSR) by the Ministry of Ports, Shipping & Waterways. 
• It allows ports to initiate, undertake and expedite projects for community welfare through a framework where local communities can also become partners of development & change.

Features

• It will impact projects and programmes relating to activities specified in Section 70 of the Major Port Authorities Act, 2021. 
• It shall be headed by the Dy. Chairperson of the Major Port and shall have 2 other Members. 
• CSR Budget will be mandatorily created through a Board Resolution as a percentage of net profit. 

Annual net profit of 100 crores or less can fix between 3% – 5% for CSR expenses. 

Net profit between 100 crores to 500 crores annually – 2% and 3% subject to a minimum of 3 crores. 

Net profit is above 500 crores per year, between 0.5% and 2% of its net profit. 

Objectives

• The guidelines aim to empower ports to address local community issues in a more cooperative and swift manner.
• CSR has the ability to become a major agent of change in a location or on an activity to bring positive change in the lives of the people. 
• It aims to ensure that ports of all sizes contribute to community welfare initiatives.

Do you Know ?

• Corporate Social Responsibility (CSR) is a means through which a company incorporates environmental, social and human development concerns into its planning and actions to ensure that its operations are ethical and beneficial for society. 

CSR in India has traditionally been seen as a philanthropic activity. However, with the introduction of Section 135 in the Companies Act 2013, India became the first country to have statutorily mandated CSR for specified companies.

The Act requires companies with a net worth of 500 crore or more, or turnover of 1,000 crore or more, or a net profit of 5 crore or more during the immediately preceding financial year, to spend 2 percent of the average net profits of the immediately preceding three years on CSR activities.

It enumerates the activities that can be undertaken and the manner in which the companies can undertake CSR projects/programmes.

Practice Questions for Prelims

Consider the following statements about Sagar Samajik Sahayyog:

1. It is launched by Union Ministry of Ports, Shipping & Waterways.
2. As a part of community welfare, even local communities can become partners of change.

Choose the correct statements:
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Ans. c)

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