Lok Sabha Question No. 1984 (UNSTARRED), answered on 2017-12-29
Subject: CSR by PSUs
Ministry: CORPORATE AFFAIRS
Asked by: KAUSHALENDRA KUMAR

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 1984 ANSWERED ON FRIDAY THE 29th DECEMBER, 2017 PAUSHA 08, 1939 (SAKA)

CSR BY PSUs

## QUESTION

1984. SHRI KAUSHALENDRA KUMAR:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a)  whether Public Sector Undertakings (PSUs) can spend funds on their own  discretion  under  Corporate  Social  Responsibility  (CSR)  or  have responsibility to give priority to the backward areas of the country and if so, the details thereof;
- (b) whether PSUs seek advice from the Government for spending fund under CSR or there is a provision to consult the elected representatives and if so, the details thereof;
- (c) whether the whole CSR fund has been spent only on cleanliness drive during the last year; and
- (d) if so, the details thereof and the reasons therefor along with the reasons
- for not giving importance to the other works?

## ANSWER

MINISTER OF STATE FOR LAW AND JUSTICE AND CORPORATE AFFAIRS                                          (SHRI P. P. CHAUDHARY)

विधि और न्र्ार् एिं कारपोरेट कार्य मंत्रालर् में राज्र् मंत्री

(

श्री पी॰ पी॰ चौिरी )

(a) & (b) : Section 135 of the Companies Act, 2013 ('The Act') requires every company, including public sector undertakings (PSUs), above the specified threshold to spend at least two per cent of the average net profits earned during  three  immediate  preceding  financial  years  on  Corporate  Social Responsibility (CSR). The first proviso to section 135 (5) of the Act reads that 'the company shall give preference to the local area and areas around it where it operates, for spending the amount earmarked for CSR activities'. As  per  Section  135  (3)  &  (4)  of  the  Act,  the  Board  of  the  CSR  eligible company, and its CSR  Committee, are empowered  to select  CSR

कारपोरेट कार्य मंत्री

programmes  /  projects  /  activities  to  be  undertaken  including  the  area where the works are to be undertaken under such programmes/projects. Contd…p2/-

-2-

(c) & (d): No Madam. The entire CSR fund of PSUs has not been spent on cleanliness  drive  only  during  the  last  year.  The  total  CSR  expenditure reported  by  PSUs  in  various  development  sectors  as  enlisted  in  the Schedule VII of the Act, for the year 2015-16, as per the filings made on MCA21 registry upto 31.03.2017, is as summarized in the Table below:

## DEVELOPMENT SECTOR WISE CSR EXPENDITURE BY PSUs FOR FY 2015-16

| S. No.                | Sectors                                                                                        | CSR Expenditure ( In Rs. crores )   |
|-----------------------|------------------------------------------------------------------------------------------------|-------------------------------------|
| 1                     | Health/ Eradicating Hunger/ Poverty and malnutrition/ Safe drinking water / Sanitation         | 1,466.01                            |
| 2                     | Education/ Differently Abled/ Livelihood                                                       | 806.17                              |
| 3                     | Rural Development Projects                                                                     | 529.87                              |
| 4                     | Environment/ Animal Welfare/ Conservation of resources                                         | 290.64                              |
| 5                     | Swachh Bharat Kosh                                                                             | 637.69                              |
| 6                     | Any other fund                                                                                 | 215.54                              |
| 7                     | Gender equality / Women empowerment / Old age homes / Reducing inequalities                    | 77.57                               |
| 8                     | Prime Minister's National Relief Fund                                                          | 20.42                               |
| 9                     | Encouraging Sports                                                                             | 6.93                                |
| 10                    | Heritage, Art and Culture                                                                      | 56.27                               |
| 11                    | Slum Area Development                                                                          | 37.31                               |
| 12                    | Clean Ganga Fund                                                                               | 0.55                                |
| 13                    | Other Sectors (Technology Incubator and benefits to armed forces, admin overheads and others*) | 14.60                               |
|                       | Total (In Rs. Crore)                                                                           | 4,159.57                            |
| Number of Companies** | Number of Companies**                                                                          | 237                                 |

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