KATHMANDU, April 7 (Xinhua) -- Nepalese government on Friday started implementing the provision of newly introduced Industrial Enterprise Act that the industries need to allocate at least 1 percent of their annual profit for social welfare.
Clause 48 per the Industrial Enterprise Act 2016 states, big or medium scale enterprises as well as small enterprises having annual turnover over 150 million Nepalese Rupee (1.45 million U.S. dollar) have to allocate at least 1 percent of their annual profit for Corporate Social Responsibility (CSR) purpose. The allocated amount should be spent in the specific projects as incorporated in annual program for CSR.
Nepal's Industry Minister Nabindra Raj Joshi announced on Friday that the state-owned Hetauda Cement Industry and Udayapur Cement Industry would allocate 1.45 U.S. dollars and 1.94 U.S. dollars per 100 sacks respectively.
"The announcement will be implemented from April 16," he said.
Nepalese Industry Ministry said that the collected amount from these two industries would be spent in health, education and nutrition of disadvantaged children.
Nepal's enterprises have been spending certain amount in social causes. But, it is the first time that legal provision has been made ensuring that enterprises must spend certain amount of their profits for social causes.