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CSR spends climb, yet corporate reputations show little improvement
Kanika Datta
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India's unique corporate social responsibility (CSR) law was introduced in 2013 under the second United Progressive Alliance government at a time when India Inc's reputation was somewhat tarnished. Anil Agarwal's Vedanta was embroiled in a controversy over mining bauxite in a tribal area in Odisha. The famous 'no-go area' dispute over allowing or disallowing coal mining in environmentally fragile forests in the east had erupted within the government under pressure from the mining lobby.
The government's optimistic special economic zone (SEZ) policy of 2005 provoked a rash of indiscriminate land acquisition that often defrauded farmers
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Business Standard
12 hours ago
- Business Standard
IiAS opposes Hindustan Zinc CEO's reappointment over remuneration terms
Hindustan Zinc's (HZL's) three board resolutions, which will be put to vote shortly, have come under scrutiny with voting advisory firm Institutional Investor Advisory Services India (IiAS) recommending an 'against' vote on them. The key resolution flagged by IiAS concerns the reappointment of HZL's whole-time director and chief executive officer, Arun Misra. While supporting his continuation as CEO, the advisory firm has opposed the terms of his remuneration. Misra drew Rs 13.54 crore in FY25 from HZL, in addition to stock options worth Rs 6.37 crore from holding company Vedanta, taking his total package to Rs 19.9 crore. IiAS estimates his FY26 remuneration at Rs 31.42 crore. HZL does not have a stock option scheme, and its senior executives are allotted stock options by Vedanta. 'As stated in the annual report, the cost of the stock options is borne by Hindustan Zinc under an agreement between Vedanta and Hindustan Zinc. We believe that, since Misra is an executive director at Vedanta, the cost of stock options should be shared by Vedanta and Hindustan Zinc in proportion to the duties discharged, rather than borne solely by Hindustan Zinc. We also call for greater transparency on the quantum of proposed stock options and disclosure of performance metrics for variable payouts,' IiAS said in its report. Requests for comment from HZL on the IiAS report went unanswered at the time of going to press. IiAS is also opposing the reappointment of two independent directors, Pallavi Joshi Bakhru and Anoop Mittal. Bakhru, a senior leader at Grant Thornton Bharat, previously served as group head–taxation at Vedanta between 2015 and 2020. IiAS stressed that best governance practice discourages the appointment of former executives alongside their prior supervisors within a five-year cooling-off period — a threshold not met in her case. Further, Grant Thornton advised HZL on the Black Mountain Mining deal in 2023, raising potential conflict-of-interest concerns regarding her role, the advisory firm said. IiAS also opposed the reappointment of Chatterjee, a 1999-batch IAS officer representing the government of India, which holds a 27.92 per cent stake in HZL. It said the resolution contravenes board independence norms. Since the chairperson of HZL is a non-executive promoter, regulations mandate that half of the company's board comprise independent directors. As of August 8, HZL's independent representation stood at only 33 per cent, IiAS noted. 'This matter is pending with the Ministry of Mines, government of India, for the appointment of more independent directors. We expect the government to first address board composition before appointing nominees. We do not support this resolution,' IiAS said. The advisory firm has, however, recommended 'for' votes on the other seven resolutions put forth by HZL, which will be voted on between August 20 and August 24, ahead of the company's annual general meeting on August 25.
Time of India
2 days ago
- Time of India
Special economic zone to be set up by Chinese textile group inaugurated in Pakistan capital
Islamabad: Pakistan Prime Minister Shehbaz Sharif on Friday inaugurated a special economic zone (SEZ) in Islamabad to be set up by a Chinese textile group . State-run the Associated Press of Pakistan (APP) reported that the project would generate exports worth USD 400 million for the country. It will be set up by the Chinese textile group Challenge Fashion Private Limited , which is set to invest USD 100 million over five years in the project. PM Sharif welcomed the establishment of an SEZ, saying that the "initiative would facilitate technology transfer, skill development, and sustainable industrial growth". He also met with the company's delegation - led by its chairman Huwang Weiguo , expressing Pakistan's willingness to "take bilateral ties to new heights", APP quoted him as saying. Live Events The prime minister assured the delegation of his government's complete facilitation for setting up the zone as part of the "industrial component of CPEC ," and thanked the delegation for having faith in the Pakistani market, APP reported. The prime minister expressed Pakistan's desire to set up more such units across the country and hoped to benefit from China's textile sector. He also said that "a China-Pakistan Business-to-Business Conference would soon be held in China, providing an opportunity for collaboration between private businesses of both countries," APP reported. Chairman Huwang said he aims to establish a modern textile industry in Pakistan and thanked the prime minister for his support and hospitality. Pakistan and China have strong economic ties and the USD 60 billion China-Pakistan Economic Corridor (CPEC) is a leading exponent of the relationship. Currently, phase II of the programme is being implemented with a focus on industrialisation, development of special economic zones and projects related to clean energy, agriculture and livelihood projects.
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Business Standard
3 days ago
- Business Standard
India Inc turns to equity, bonds as cheaper bank loans remain elusive
With RBI rate cuts yet to fully pass through to bank loans, corporate India is tapping bond and equity markets at record levels, taking advantage of lower costs and better valuations Subrata Panda Mumbai Listen to This Article Indian corporates are increasingly shifting away from bank funding towards alternative sources such as equity and bond markets, as their deleveraged balance sheets have improved their ability to raise equity at better valuations. Moreover, the 100 basis points (bps) rate cut by the Reserve Bank of India (RBI) has enabled them to access long-term funds from the debt capital market at cheaper rates. Fund-raising by corporates has been abuzz this year through block deals and qualified institutional placements. In FY25, India Inc has raised over Rs 42,000 crore through QIPs. Additionally, they have raised over Rs 1.07 trillion through block
