Injeti Srinivas Committee

India has obligated the Corporate Social Responsibility (CSR) that allowed groups and people to invest in the company’s stake and success.

However, the lack of a committee to govern the changes and downfall led to multiple challenges. To comply with this requirement, a High-Level Committee under the Chairmanship Injeti Srinivas, Secretary, Ministry of Corporate Affairs (MCA), was launched in 2018.

Injeti Srinivas Committee examined CSR data filed by companies on 31^st March 2019 and submitted a report on 7^th August 2019.

Individuals preparing for competitive exams like UPSC 2022 or IAS exam can read the article for detailed information.

Essential Facts about Corporate Social Responsibility

Corporate Social Responsibility is a social activity that helps assess a company and suggest better factors for growth.

Injeti Srinivas Committee is constituted to frame laws for CSR framework based on clause 135 of the Companies Act, 2013.

Nevertheless, here are some essential points on CSR for detailed study.

• India happens to be a pioneering country to permit CSR spending and built a framework to identify the potential for related activities.
• CSR provision is meant for companies that have a turnover of Rs.1,000 crores and more annually. This is valid for companies with annual revenue of Rs.500 crore and more.
• This Act makes companies set up a CSR committee to recommend a CSR Policy for monitoring to the Board of Directors.
• Companies are suggested to spend nearly 2% of their net profit in CSR activities within three years.

Individuals preparing for UPSC prelims should know that activities undertaken under CSR have been specified by Schedule VII of the Act. These activities include-

• Promoting gender equality, education and women empowerment.
• Eradicating social concerns like poverty and hunger.
• Fighting diseases like Acquired Immune Deficiency Syndrome, Human Immunodeficiency Virus and other critical illnesses.
• Ensure environmental sustainability.
• Contributing to relief funds like Prime Minister’s National Relief Fund set up by Central or State Government for the welfare of Scheduled Tribes, Scheduled Castes, minorities, other backward classes and women.

Apart from CSR, the Injeti Committee also takes care of the IFSCA needs of India. According to the Hindu Business Line, the second interim report was submitted by the Injeti Srinivas Committee to the chairperson of the International Financial Services Centres Authority on 22^nd October 2020.

This detailed the study on international retail development in IFSC. They made some recommendations for sustainable growth.

Recommendations Made Against IFSCA Report

• It recommended that Indians and NRI buy life insurance policies in companies set up in IFSC. This provision allowed Indians to pay premiums in the currency of their choice.
• IFSCA will be headquartered at GIFT city, Gandhinagar.
• Non-Resident Indians can purchase portable life insurance policies. This policy will provide NRI’s flexibility to pay premiums in Indian currency.
• Insurance companies can offer insurance products to family members of NRI’s and Indians.
• These insurance products cover accidents, baggage losses, travel and lost documents.
• Indians can buy Overseas Health Insurance facilitated through intermediaries in IFSC.
• Asian and African insurance companies will offer services in India.
• IFSC will become an aviation insurance hub globally.
• Indian investors will set up insurance companies for sustainable growth.

Individuals should also know that Injeti Srinivas has suggested the addition of home buyers as monetary creditors under IBC housing projects. This ensures power to make construction based companies accountable.

Students preparing for the competitive exam can follow this article on Injeti Srinivas Committee for detailed study. They can also check educational portals and news reports to find recent updates on Injeti Srinivas Committee for UPSC exam preparation.