Daily Current Affairs : 28-June-2023
In a significant development, the Union Minister of Ports, Shipping & Waterways recently launched ‘Sagar Samajik Sahayyog,’ a set of new guidelines for Corporate Social Responsibility (CSR) by the Ministry. This initiative aims to empower ports to undertake CSR activities directly and expedite projects for community welfare. Let us delve deeper into the features and objectives of this program.
Features of Sagar Samajik Sahayyog:
- Empowering Ports for CSR Activities:
- The guidelines empower ports to directly undertake CSR activities, enabling them to make a tangible impact on local communities.
- Ports can initiate and expedite projects for community welfare, creating a framework where local communities can actively participate and become partners in development and change.
- Impact on Projects and Programmes:
- Sagar Samajik Sahayyog will influence projects and programs related to activities specified in Section 70 of the Major Port Authorities Act, 2021.
- This ensures that CSR initiatives are aligned with the core areas of focus for port authorities.
- Formation of Corporate Social Responsibility Committee:
- To plan and implement CSR projects effectively, each major port will constitute a Corporate Social Responsibility Committee.
- This committee will be headed by the Deputy Chairperson of the Major Port and will have two other members.
- The committee will be responsible for overseeing the allocation and utilization of CSR funds.
- Mandatory Creation of CSR Budget:
- A corporate social responsibility budget will be created through a Board Resolution as a percentage of the net profit.
- The allocation of funds ensures that ports prioritize community welfare initiatives.
- Allocation of CSR Expenses based on Net Profit:
- Ports with an annual net profit of ₹100 crores or less can allocate between 3% – 5% of their net profit towards CSR expenses.
- Ports with a net profit between ₹100 crores and ₹500 crores annually can allocate between 2% and 3% of their net profit, subject to a minimum of ₹3 crores.
- Ports with an annual net profit above ₹500 crores can allocate between 0.5% and 2% of their net profit towards CSR expenses.
Objectives of Sagar Samajik Sahayyog:
- Empowering Ports to Address Community Issues:
- The guidelines aim to empower ports to address local community issues in a more cooperative and swift manner.
- By directly undertaking CSR activities, ports can contribute effectively to the welfare of the communities they operate in.
- CSR as an Agent of Positive Change:
- The initiative recognizes the potential of CSR to become a major agent of change.
- CSR projects can bring about positive transformations in specific locations or activities, improving the lives of the people involved.
- Ensuring Contribution from Ports of all Sizes:
- Sagar Samajik Sahayyog aims to ensure that ports of all sizes contribute to community welfare initiatives.
- By mandating CSR activities and allocating funds based on net profit, even smaller ports can actively participate in social responsibility.
Important Points
- The Union Minister of Ports, Shipping & Waterways launched ‘Sagar Samajik Sahayyog,’ new guidelines for Corporate Social Responsibility (CSR) by the Ministry.
- Sagar Samajik Sahayyog empowers ports to undertake CSR activities directly and initiate projects for community welfare.
- It impacts projects and programs specified in Section 70 of the Major Port Authorities Act, 2021.
- Each major port will form a Corporate Social Responsibility Committee, headed by the Deputy Chairperson, to plan and implement CSR projects effectively.
- CSR Budget will be created through a Board Resolution as a percentage of net profit.
- Allocation of CSR expenses based on net profit:
- Ports with an annual net profit of ₹100 crores or less: 3% – 5% for CSR expenses.
- Ports with a net profit between ₹100 crores and ₹500 crores annually: 2% – 3%, subject to a minimum of ₹3 crores.
- Ports with an annual net profit above ₹500 crores: 0.5% – 2% of net profit.
- Objectives of Sagar Samajik Sahayyog:
- Empower ports to address local community issues in a cooperative and swift manner.
- Recognize CSR as a major agent of positive change.
- Ensure that ports of all sizes contribute to community welfare initiatives.
Why In News
The Union Minister of Ports, Shipping & Waterways unveiled the groundbreaking initiative ‘Sagar Samajik Sahayyog,’ aimed at fostering social support and inclusivity in coastal communities. The program seeks to empower local residents by providing them with essential resources, skills, and opportunities to thrive in the maritime sector, thus creating a brighter future for the coastal regions.
MCQs about Sagar Samajik Sahayyog
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What is the objective of ‘Sagar Samajik Sahayyog’?
A. To promote environmental sustainability in ports.
B. To enhance corporate profits in the shipping industry.
C. To empower ports to address local community issues.
D. To streamline logistics operations in major ports.
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How are CSR expenses allocated in ports under ‘Sagar Samajik Sahayyog’?
A. Based on the size of the port’s workforce.
B. By the discretion of the Corporate Social Responsibility Committee.
C. According to the port’s geographical location.
D. Based on the net profit of the port.
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What is the role of the Corporate Social Responsibility Committee in major ports?
A. To oversee the allocation and utilization of CSR funds.
B. To conduct social impact assessments in local communities.
C. To manage port infrastructure development projects.
D. To ensure compliance with environmental regulations.
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What is the significance of ‘Sagar Samajik Sahayyog’ in the shipping industry?
A. It aims to reduce shipping costs for major ports.
B. It promotes international collaboration in maritime security.
C. It encourages ports to contribute to community welfare initiatives.
D. It facilitates the privatization of port management.
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