Lok Sabha Question No. 3594 (UNSTARRED), answered on 2020-03-16
Subject: CSR Funds of SAIL
Ministry: STEEL
Asked by: Chandra Prakash Choudhary

## LOK SABHA UNSTARRED QUESTION NO.3594 FOR ANSWER ON 16/03/2020

## CSR FUNDS OF SAIL

3594.  SHRI CHANDRA PRAKASH CHOUDHARY:

Will the Minister of STEEL be pleased to state:

- (a) the guidelines for utilising Corporate Social Responsibility (CSR) Funds;
- (b) the  details  of  the  work  for  which  the  CSR  amount  is  spent  and  the  places where the amount is utilised;
- (c) the Parliamentary constituencies coming under Jharkhand in which the mines of the Steel Authority of India Limited (SAIL) are located;
- (d) the amount of CSR allocated by SAIL to the above areas from 2009 to 2019, year-wise; and
- (e) the details of the CSR amount utilised for the said constituencies, work/yearwise?

## ANSWER

(SHRI DHARMENDRA PRADHAN)

## THE MINISTER OF STEEL

(a)&(b):  Corporate  Social  Responsibility  (CSR)  laid  down  under  Section  135  of  the Companies Act,  2013,  as  amended  vide  The  Companies  (Amendment)  Act,  2019, inter-alia stipulate that all Corporates, including CPSEs exceeding the threshold limits as specified in the Act, have to allocate at least 2% of their average net profits (PBT) of three immediately preceding years for CSR activities. Further, in pursuance to the powers conferred under Section 135 and sub-sections (1) and (2) of Section 469 of the Companies Act, 2013, Companies (CSR Policy) Rules, 2014, have been notified by Ministry of Corporate Affairs effective from 1 st April, 2014.

Department  of  Public  Enterprises  (DPE)  has  also  issued  guidelines  to  the CPSEs  vide Office Memorandum  (OM)  dated  01.08.2016  for observance of transparency  and  due  diligence  in  selection  and  implementation  of  activities  under CSR. Subsequently, based on the recommendations of the CPSEs Conclave held in April,  2018, guidelines have been issued by DPE vide OM dated 10.12.2018, interalia on adoption of a common theme for each year; spending 60% of the annual CSR expenditure on thematic programme, preference to aspirational districts identified by NITI Aayog, etc. The CSR theme for the year 2019-20 is Healthcare, Nutrition and School Education.

Thrust  areas  of  the  CSR  activities  is  laid  down  under  Schedule  VII  of  the Companies Act, 2013 and include promotion of educational health,  women empowerment, sustainable income generation through Self Help Groups, assistance to divyangs, access to water and sanitation facilities, village development, environment  sustenance,  sports  coaching,  promotion  of  traditional  art  and  culture, etc. CSR projects are mainly carried out in periphery of steel plants, steel townships and mines.

(c) Singhbhum,  Palamu  and  Dhanbad  are  the  Parliamentary  constituencies coming under Jharkhand where mines of SAIL are located.

(d)&(e):  A  statement  showing  CSR  budget  allocated  and  expenditure  incurred  for mines in Jharkhand from 2009 to 2019-20 (upto December, 2019) is at Annexure-I .

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## Reply to part (d) & (e)  of Lok Sabha question No. 3594 for answer on 16.03.2020

## Annexure-I

(Rs. in Lakh)

| Year             |   2009-10 |   2010-11 |   2011-12 |   2012-13 |   2013-14 |   2014-15 |   2015-16 |   2016-17 |   2017-18 |   2018-19 |   2019-20 (upto Q-3) |
|------------------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|----------------------|
| Budget Allocated |     223.2 |       400 |       522 |       280 |       400 |    528    |    678.4  |     265.2 |     217.2 |     398   |                272   |
| CSR Expenditure  |     368   |       275 |       541 |      1276 |       562 |    292.75 |    512.85 |     201   |     263   |     236.6 |                189.6 |