Global Sports Infrastructure Investment and CSR Summit
16th November 2017,
Bombay Exhibition Center
With the recent acknowledgement of ‘Industry’ status to Sports Infrastructure by the Government of India, the future does seem bright! The industry status will enable corporates to avail of concessional finance for the formation of a world class sports infrastructure, which in-turn will provide a much needed impetus to the development of a strong sporting culture across the country, particularly in rural India.
There is a dire need to increase the budgetary support to the Sports Ministry to enable it to enhance the allocation of funds to upgrade up sports development in the country, especially in small towns and district level towns.
Initiatives such as the Indian Premier League (Cricket), Pro Kabaddi League, Hockey India League, Indian Super League (Football) and Indian Badminton League have played a pivotal role in transforming the identity and reinforcing culture of sports in India. The sports industry has since, grown extensively — from Rs. 43.7 billion in 2013 to Rs. 48 billion ($713 million) in 2015 — mainly due to the emergence of new sporting leagues.
A Sports Industry in other words implies the potential to earn high dividends from multiple sporting sub segments (tourism, export, medical, etc.) through large scale employment and immense market opportunities. The time now is perfect to facilitate investment mobility so as to enable corporate houses currently involved in sports to advance to profit oriented sporting ventures, while those who are not, can consider the Sports Industry as an ideal avenue for CSR activities. Every investment directed towards the Sports Industry will evidently have a positive repercussion not only in building a strong sporting culture in India, but the economy at large.
Public Private Partnerships (PPP)
A very important step in the right direction has been the decision to grant industry status to sports infrastructure. Public Private Partnerships have found renewed interest and concessional finance to corporates for developing sports infrastructure will grow a long way in cementing this relationship.
Currently in India, the PPP model towards Sports Infrastructure has been steadily growing with private ownership of teams and infrastructure on the rise. Today, private companies opt to either take lease of a public stadium for a fixed tenure or construct as well as one themselves, and then lease it back to public organisations. The PPP model has been a global success for the sports industry and it is expected it would prove beneficial in India as well.
Vijay Goel, Minister of State for Youth Affairs, in a recent meeting at the Rajyasabha proposed to the Ministry of Corporate Affairs to widen the scope of Corporate Social Responsibility (CSR) in the sports sector by revising the existing norms.
“We have proposed to Corporate Affairs ministry, to have new inclusions in CSR- investment in sports, increased performance, financial support and competitive equipment. We have also been talking to many corporate firms to draw CSR contributions in National Sports Funds,” said Mr. Goel.
Up until today, training to promote nationally recognized sports, rural sports, Olympic and Paralympic sports were the only activities granted as a part of CSR. After intensive deliberations, on the 8th of June, the All India Council of Sports, succeeded in getting the Ministry of Corporate Affairs (MCA) to approve the construction, maintenance and renovations of stadiums and gymnasiums as well as rehabilitation centres as part of the permissible CSR activities.
As per the CSR Rules, which come under the purview of Section 135 of the Companies Act, 2013, firms with a net worth of Rs.500 crore or a revenue of Rs.1,000 crore or a net profit of Rs.5 crore need to spend 2% of their average profit of the previous three years on social development activities such as sanitation, environment protection, rural development and others. These activities are defined in Schedule VII of the Rules. The CSR spending in developing sports infrastructure, could benefit a larger section of the aspiring sportspersons and give a much needed impetus to the Sports and Fitness fraternity in India.
The Economic Times –
Leading positive Change!
The backbone for developing a robust sports culture in India is in developing infrastructure which will be at par with the best in the world. Construction world class stadiums, playing fields and developing other sporting facilities over the years will help in induce a positive culture of sports which is a very important stepping stone for establishing sports as a flourishing business.
The Economic Times has always envisioned and contributed to the cause of creating a progressive India. To further support the initiatives taken by the Minister of State for Youth Affairs and foster a conducive environment inclined towards increasing investments in Sports Infrastructure amongst India’s Corporate Sector, we at the Economic Times feel a strong sense of responsibility to be a part of this mission.
The Economic Times Sports Infrastructure Investment and CSR Summit will bring together the key policy makers from the government together with the corporates, sports federations, associations and leading athletes who will deliberate on the positive steps that have been taken to drive speedy investment in the sports sector and how it can be leveraged to make India a world class sporting nation.
- Panel Discussions – Interactive sessions including stakeholders from across the value chain followed by candid Q&A sessions
- Athlete Talks – What do the leading sports celebrities think about the topic at hand?
- Case Studies – Successful case studies on the forum theme from across the globe to understand ways around challenges and benchmarking innovative solutions and best practices
- Speed Geeking – Speed Networking sessions to help delegates know each other better and enable maximum interaction
Who Should Attend
- Architecture Firms
- Construction and Engineering companies
- Government representatives
- Public Sector Companies
- Real Estate and Infrastructure
- Sports Federations and Associations
- Sports Leagues
- Sports consultants
- Sports management agencies
- Schools and Colleges
- Sports Investment Companies
- Foundations and NGOs working at the grass-root level
- Social enterprises and start up in sports