Though the govt has requested all depts to submit projects that can be put up for exemption, none has done so yet.
The Gujarat Socio-Economic Development Society (GSEDS), a controversial cooperative society created by the state government under the Societies Registration Act, 1860 and the Bombay Public Trust Act, 1950 to get funds from state public sector enterprises (boards, corporations, companies, societies etc.) for carrying out social development projects, has received Rs53.21 crore from seven PSEs till January 24 2009, but it has no projects ready in hand to spend the money.
The formation of GSEDS was widely criticised and opposed by shareholders, IAS officers running the PSEs, other top babus and even from ministers.
However, chief minister Narendra Modi’s backing to the proposal finally saw the society take shape.
The state government asked 13 state PSEs to contribute 30 per cent of their profits to the society.
Highly-placed sources in the government said, “The GSEDS has received Rs53.21 crore as contribution from seven state PSEs while six PSEs have not responded yet. It was created to increase flow of funds from state PSEs as Corporate Social Responsibility (CSR) fund which can be used for the state government’s social development projects.”
“The GSEDS aims to promote contribution from the state PSEs which can be claimed for exemption under 35AC and 80 G of the Income-tax act. For getting exemption of the donated money, the PSEs need to fund projects approved by the Union government,” sources said.
“Though the state government has requested all departments to submit projects which can be put up to get exemption, no department has submitted projects. Until the society receives projects from various departments, it cannot send them to the Centre for approval. As such, the fund cannot be utilised,” they added.
The society still doesn’t have its own infrastructure, and can be said to exist on paper only. The Executive Committee to run the society has still not been formed.
It is at present managed by a governing body. The last meeting of the governing body was held in July 2008.
The government also aims to collect fund for the society from central government PSEs, corporate houses, industry and trade associations, institutions and individuals etc, but except for a few state PSEs no one has come forward with contributions even though 11 months have passed since the society was formed in March 2008.
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