Kathmandu, July 12 -- The government has proposed sweeping changes to corporate social responsibility (CSR) mobilisation by requiring companies to deposit their mandatory CSR allocations into a centrally managed government fund instead of spending the money directly on community projects. The move has triggered strong opposition from the private sector.

A draft bill to amend the Company Act prepared by the Ministry of Industry, Commerce and Supplies, is said to be a part of broader reforms aimed at promoting investment and making company administration simpler and more technology-friendly.

If endorsed, the draft would fundamentally alter Nepal's current CSR framework under which industries, banks and financial institutions spend part of...