Lok Sabha Question No. 88 (STARRED), answered on 2016-11-22
Subject: Misuse of CSR Funds
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: JUGAL KISHORE SHARMA

## GOVERNMENT OF INDIA

## MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES DEPARTMENT OF PUBLIC ENTERPRISES

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## LOK SABHA

## STARRED QUESTION No. *88

## TO BE ANSWERED ON THE 22 ND  NOVEMBER, 2016

## Misuse of CSR Funds

## *88 . SHRI JUGAL KISHORE:

Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES be pleased to state:

- (a) the funds allocated and utilised by the Central Public Sector Enterprises (CPSEs) along with the details of projects undertaken by various PSUs under Corporate Social Responsibility (CSR) during the last three years and the current year;
- (b) whether  the  Government  is  aware  of  the  misuse  of  Corporate  Social Responsibility funds by the Public Sector Undertakings and if so, the details thereof; and
- (c) the  steps  taken  by  the  Government  to  ensure  that  corporate  social responsibility fund is utilised properly as per the standard guidelines?

## A N S W E R

## THE MINISTER OF STATE OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI BABUL SUPRIYO)

- (a)  to (c): A statement is laid on the Table of the House.

Part  (a): Department  of  Public  Enterprises  (DPE)  is  the  nodal  Department  for Central Public Sector Enterprises (CPSEs) but it does not have any CPSE under its direct  administrative  control.  These  CPSEs  are  controlled  by  various  Ministries/ Departments of Government of India.

Selection of CSR activities is to be undertaken by CPSEs as specified in ScheduleVII of Companies Act, 2013 and allocation of funds to be incurred on the activities is decided on the recommendations of CSR Committee constituted by the CPSE with the approval of Boards of respective CPSEs. Details of projects wherein CSR funds have  been  utilized  are  maintained  only  from  2014-15  after  the  provisions  of  CSR came  into  force  on  1 st April,  2014  under  the  Companies  Act,  2013.  All  eligible corporates, including CPSEs are now mandated to furnish details of funds allocated and utilized for undertaking activities / projects under CSR in the format prescribed by the Ministry of Corporate Affairs (MCA) under the Companies (CSR Policy) Rules, 2014. This information has also to be uploaded by CPSEs on the website of MCA.

As  per  information  furnished  by  120  CPSEs  an  amount  of  Rs.  2450.31  crore  has been  incurred  during  2014-15  and  an  amount  of  Rs.  3754.33  crore  has  been incurred  by  92  CPSEs  during  2015-16  for  undertaking  CSR  activities/  projects. Details are given in Annexure.

Part (b) & (c): CSR activities are taken up by the CPSEs on the recommendations of CSR Committee with the approval of Board of respective CPSEs. All CPSEs eligible for CSR are mandated to undertake CSR activities and also, to follow the procedure as notified by Ministry of Corporate Affairs in Companies (CSR Policy) Rules, 2014, including  redressal  of  complaints  or  misuse,  if  any,  in  this  regard.  Besides,  an advisory has been issued by the Department to CPSEs to observe transparency and due diligence in selection and implementation of activities under CSR.

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