BENGALURU : The government will frame a policy mandating public sector units (PSUs) to set aside 2% of profits as corporate social responsibility (CSR) funds, said MTB Nagaraj, minister for public enterprises.
Replying to queries in the legislative council on how PSUs in the state are spending CSR funds, Nagaraj said the government will soon introduce a law to ensure CSR funds are used for local requirements. “At present, there are no laws which mandate how PSUs should spend CSR funds,” the minister said. “As per provisions of the Companies Act 2013, PSUs registered under the Act must set aside 2% of profits as CSR funds. There is no requirement for sick units to set aside CSR funds. ”
