Lok Sabha Question No. 1207 (UNSTARRED), answered on 2018-02-09
Subject: Activities by Companies under CSR
Ministry: CORPORATE AFFAIRS
Asked by: BHEEMRAO BASWANTHRAO PATIL

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 1207 ANSWERED ON FRIDAY THE 09th FEBRUARY, 2018/ MAGHA 20, 1939 (SAKA)

## ACTIVITIES BY COMPANIES UNDER CSR QUESTION

1207.  SHRI BHEEMRAO B. PATIL:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a)  whether the Government has notified Corporate Social Responsibility (CSR) policy norms under the Companies Act, 2013, if so, the details and salient features thereof;
- (b)  the details of expenditure incurred and work done by the public sector undertakings  (PSUs)  and  private  companies  since  the  inception  of  the Companies Act, 2013, company-wise and State/UT-wise;
- (c)   whether any irregularities have come to the notice of the Government with regard to execution of CSR, if so, the details thereof along with the action taken by the Government against those companies;
- (d)    whether  the  Government  has  set  up  any  monitoring  mechanism  to monitor the activities and utilisation of funds by the companies under CSR, if so, the details thereof; and
- (e)  whether the Government has taken note that the assistance of public representatives is not sought while selecting activities by companies under CSR,  if  so,  the  details  thereof  and  corrective  measures  taken  by  the Government in this regard?

## 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):  The provisions of Corporate Social Responsibility (CSR) under Section 135 of the Companies Act, 2013 (the 'Act') and rules made thereunder have been  notified  on  27.02.2014.  These  notifications  are  available  on  the Ministry's website (www.mca.gov.in). The salient features of CSR provision inter-alia, are as follows:
-  mandates  every  company  that  is  above  a  specified  threshold  of turnover or net worth or net profit to spend at least two per cent of the average net profits earned during three immediately preceding financial years on CSR activities as specified in Schedule VII of the Act;

-  each such company is required to constitute a CSR committee of the Board;
-  the Board of each such company is required to have the company's CSR policy formulated and monitor its implementation;
-  the Board's report shall include an annual report on CSR containing particulars specified in prescribed format;
-  the  Board's  report  shall  specify  the  reasons  for  not  spending  the specified amount, if the company fails to spend such amount;
-  companies  may  implement  their  CSR  Policy  through  (i)  registered trusts  (ii)  registered  societies  or  (iii)  a  company  established  under section 8 of the Act.

(b):    As  per  the  data  culled  out  from  filings  made  by  companies  upto 30.11.2017 in the MCA21 registry for the years 2014-15, 2015-16 and 201617, the expenditure made by such companies on CSR is given in the Table below and States/UTs-wise CSR expenditure and development sector-wise CSR spend by companies which have reported any CSR expenditure are at Annexure I and Annexure II respectively.

CSR expenditure for the three Financial Years

| Sl. No.   | Company Type             |   Financial Year 2014-15 (in Rs. crore) |   Financial Year 2015-16 (in Rs. crore) |   Financial Year 2016-17 (in Rs. crore) |
|-----------|--------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|
| 1.        | PSUs                     |                                 2673.85 |                                 4163.09 |                                 1325.83 |
| 2.        | Private Sector Companies |                                 6890.92 |                                 9664.77 |                                 3393.17 |
|           | Total                    |                                 9564.77 |                                13827.9  |                                 4719    |

(c) to (e) :  As per Section 135 (3) & (4) of the Companies Act, 2013 Board of the company is empowered to select programmes/projects/activities to be undertaken and monitor the same. Ministry of Corporate Affairs has no role to play in this regard.

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ANNEXURE -I ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARED QUESTION NO. 1207 STATE/UT-WISE CSR EXPENDITURE DURING FY 2014-15, FY 2015-16 AND 2016-17

0.00

| CSR Expenditure ( In Rs. Crores )   | CSR Expenditure ( In Rs. Crores )   | CSR Expenditure ( In Rs. Crores )   | CSR Expenditure ( In Rs. Crores )   | CSR Expenditure ( In Rs. Crores )   |
|-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|
| Sl . No.                            | State/ UT                           | 2014-15                             | 2015-16                             | 2016-17                             |
| 1                                   | Andaman & Nicobar Islands           | 0.29                                | 0.54                                | 0.07                                |
| 2                                   | Andhra Pradesh                      | 403.91                              | 1,220.54                            | 101.69                              |
| 3                                   | Arunachal Pradesh                   | 11.03                               | 1.49                                | 7.98                                |
| 4                                   | Assam                               | 133.07                              | 166.81                              | 38.28                               |
| 5                                   | Bihar                               | 36.20                               | 108.15                              | 36.90                               |
| 6                                   | Chandigarh                          | 1.73                                | 5.08                                | 4.17                                |
| 7                                   | Chhattisgarh                        | 158.89                              | 236.22                              | 14.85                               |
| 8                                   | Dadar & Nagar Haveli                | 2.54                                | 12.03                               | 1.65                                |
| 9                                   | Daman & Diu                         | 20.05                               | 2.13                                | 0.83                                |
| 10                                  | Delhi                               | 214.24                              | 468.18                              | 229.87                              |
| 11                                  | Goa                                 | 26.60                               | 30.25                               | 10.54                               |
| 12                                  | Gujarat                             | 296.53                              | 550.98                              | 152.04                              |
| 13                                  | Haryana                             | 176.29                              | 364.22                              | 107.87                              |
| 14                                  | Himachal Pradesh                    | 9.30                                | 51.71                               | 10.57                               |
| 15                                  | Jammu & Kashmir                     | 40.57                               | 103.02                              | 27.83                               |
| 16                                  | Jharkhand                           | 75.86                               | 115.70                              | 24.24                               |
| 17                                  | Karnataka                           | 382.79                              | 730.64                              | 202.71                              |
| 18                                  | Kerala                              | 64.30                               | 129.24                              | 50.94                               |
| 19                                  | Lakshadweep                         | 0.00                                | 0.30                                | 0.00                                |
| 20                                  | Madhya Pradesh                      | 137.15                              | 178.94                              | 213.48                              |
| 21                                  | Maharashtra                         | 1,372.34                            | 1,810.45                            | 702.37                              |
| 22                                  | Manipur                             | 1.57                                | 5.93                                | 6.03                                |
| 23                                  | Meghalaya                           | 3.52                                | 3.86                                | 2.99                                |
| 24                                  | Mizoram                             | 1.03                                | 1.08                                | 0.08                                |
| 25                                  | Nagaland                            | 1.11                                | 0.95                                | 0.45                                |
| 26                                  | Odisha                              | 249.50                              | 604.26                              | 191.43                              |
| 27                                  | Pondicherry                         | 1.81                                | 6.31                                | 3.71                                |
| 28                                  | Punjab                              | 53.86                               | 68.17                               | 20.17                               |
| 29                                  | Rajasthan                           | 271.36                              | 472.46                              | 84.99                               |
| 30                                  | Sikkim                              | 1.03                                | 1.90                                | 2.12                                |
| 31                                  | Tamil Nadu                          | 498.89                              | 597.60                              | 202.53                              |
| 32                                  | Telangana                           | 94.89                               | 248.57                              | 64.56                               |
| 33                                  | Tripura                             | 1.16                                | 1.47                                | 0.60                                |
| 34                                  | Uttar Pradesh                       | 138.64                              | 406.93                              | 120.34                              |
| 35                                  | Uttarakhand                         | 69.99                               | 71.50                               | 30.74                               |
| 36                                  | West Bengal                         | 178.61                              | 399.89                              | 121.12                              |
| 37                                  | Pan India*                          | 4,434.12                            | 4,650.39                            | 1,928.26                            |
|                                     | Grand Total                         | 9,564.77                            | 13,827.86                           | 4,719.00                            |

* Companies either did not specify the names of States or indicated more than one State where projects were undertaken.

********

*******

## ANNEXURE II

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARED QUESTION NO. 1207 SECTOR-WISE CSR EXPENDITURE FOR FY 2014-15,  FY 2015-16 AND FY 2016-17

| CSR Expenditure ( In Rs. Crores )   | CSR Expenditure ( In Rs. Crores )                                                                | CSR Expenditure ( In Rs. Crores )   | CSR Expenditure ( In Rs. Crores )   | CSR Expenditure ( In Rs. Crores )   |
|-------------------------------------|--------------------------------------------------------------------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|
| SI. No.                             | Sectors                                                                                          | 2014-15                             | 2015-16                             | 2016-17                             |
| 1                                   | Health/ Eradicating Hunger/ Poverty and malnutrition/ Safe drinking water / Sanitation           | 2,382.27                            | 4,330.21                            | 1,201.37                            |
| 2                                   | Education/ Differently Abled/ Livelihood                                                         | 3,021.47                            | 4,689.81                            | 1,605.05                            |
| 3                                   | Rural development                                                                                | 1,031.02                            | 1,327.57                            | 628.56                              |
| 4                                   | Environment, Animal Welfare, Conservation Of Resources                                           | 812.31                              | 901.80                              | 306.68                              |
| 5                                   | Swachh Bharat Kosh                                                                               | 94.52                               | 323.24                              | 89.35                               |
| 6                                   | Any Other Funds                                                                                  | 272.58                              | 322.63                              | 137.70                              |
| 7                                   | Gender equality / Women empowerment / Old age homes / Reducing inequalities                      | 172.63                              | 331.50                              | 122.60                              |
| 8                                   | Prime Minister's National Relief Fund                                                            | 211.04                              | 206.08                              | 109.81                              |
| 9                                   | Encouraging Sports                                                                               | 53.36                               | 134.76                              | 51.73                               |
| 10                                  | Heritage Art and Culture                                                                         | 113.62                              | 114.90                              | 49.64                               |
| 11                                  | Slum Area Development                                                                            | 101.07                              | 13.60                               | 1.97                                |
| 12                                  | Clean Ganga Fund                                                                                 | 4.64                                | 32.52                               | 22.97                               |
| 13                                  | Other Sectors ( Technology Incubator And Benefits To Armed Forces, Admin Overheads and others* ) | 1,294.24                            | 1,099.24                            | 391.57                              |
|                                     | Total Amount (in Rs.                                                                             | 9,564.77                            | 13,827.86                           | 4,719.00                            |

* not specified