KOCHI: With the new Corporation council and other local bodies a few days away from taking charge, residents associations have demanded the widening of narrow roads in the city by utilising the CSR funds of city-based private institutions.
As the Kochi Corporation continues to blame fund crunch as the reason for its inability to take up several projects, associations hope the new approach will yield results.
Several residents pointed out the Kizhakkambalam Twenty20 model ‘nodal agency’ to execute the projects. “If Kizhakkambalam can implement initiatives beyond the plan limits of a civic body using CSR funds, Kochi can also think along similar lines. We have several private firms which have multi-crore turnover every year. They can contribute to the growth of the city. Residents associations can help the revenue department to regain encroachments and acquire the required land. Instead of passing the buck, Corporation officials can bring in a collective effort,” said Vivek Nair, a resident of Elamakkara.
However, some residents’ associations are apprehensive about the suggestion. “In the Kizhakkambalam model, the proprietor can pump in funds based on the requirements. Many won’t be able to fund like Kitex for a long time. Ernakulam is utilising BPCL’s CSR fund to a great extent. But all these funds have limitations. We can pressurise our respective councillors to implement road development on a priority basis,” said V C Jayendran, general convener, Tripunithura Rajanagari Union of Residents’ Association.
“Land acquisition is the major roadblock. The private sector won’t wait for years to shell out their money. Instead of relying on them, we need the effective utilisation of existing funds. Besides, the authorities should ensure quality assurance and maintenance by the contractor for at least three years. It should be implemented in a phased manner,” said Jayendran.
Experts are of the view that restrictions on the utilisation of CSR funds will be tricky. “CSR funds can only be given to trusts or to those in charge of executing the work. They cannot allocate their funds to local bodies. There needs to be a way to address the restrictions and find alternative options,” said S Gopakumar, member of Kochi-based NGO Better Kochi Response Group.
CSR Sectors
India is the first country in the world to mandate CSR spend through legislative action. According to government directions, companies with a net worth of Rs 500 crore or more/ annual turnover of I1,000 crore or more or net profit of I5 crore or more can spend their designated funds into various sectors. Education, health care, rural development projects, environmental sustainability, poverty eradication and sanitation are the major sectors which witness large spending of CSR.