Lok Sabha Question No. 3200 (UNSTARRED), answered on 2021-03-15
Subject: Amendment to CSR Rules
Ministry: CORPORATE AFFAIRS
Asked by: Jagdambika Pal

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 3200

ANSWERED ON MONDAY THE 15 th  MARCH, 2021/

PHALGUNA 24, 1942 (SAKA)

## AMENDMENT TO CSR RULES

## QUESTION

3200. SHRI JAGDAMBIKA PAL:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a) whether the Government has made changes to the Corporate Social Responsibility(CSR)  Rules  and  if  so,  the  details  thereof  including  highlights  of  the significant changes made therein;
- (b)  the  details  of  the  objectives  and  expected  outcomes  of  incorporating  the  new changes in CSR Rules;
- (c) whether there are any estimates regarding the funds expected to be contributed towards CSR, category-wise, especially the newly added categories, as a result of the new changes in the CSR Rules and if so, the details thereof;
- (d) whether any consultations were carried out or feedback taken by the Government for the said changes; and if so, the details thereof;
- (e) the details of the CSR contribution by companies towards Aspirational Districts in each of the last three years; and
- (f)  the  details  of  the  steps  taken  by  the  Government  to  encourage  companies  to contribute CSR funds towards development of Aspirational Districts and conservation of environment?

## ANSWER

THE MINISTER OF STATE FOR FINANCE AND CORPORATE AFFAIRS                                           (SHRI ANURAG SINGH THAKUR) वित्त एिं कारपोरेट कार्य  मंत्रालर् में राज्र् मंत्री ( श्री अनुराग स ंह ठाक ु र )

(a) to (d):  Yes sir. The recent amendments in the Companies (CSR Policy) Rules, 2014 has been notified on 22 nd  January 2021. These amendments aim at strengthening the Corporate Social Responsibility (CSR) ecosystem by improving and strengthening the disclosures, simplifying the compliances, bringing in more objectivity, transparency and entrusting more  responsibility  on  the  Board  of  the  company.  The  Ministry  had carried out wider stakeholder consultations and invited for public comments on the draft rules. Large number of comments were received on the draft rules from various stakeholders, viz.  Companies,  NGOs,  Academic  Institutions, Industry Associations,

Professional  Institutes,  professionals  and  public  at  large.  The  highlights  of  these amendments, inter-alia, includes,  mandatory registration  of  implementing  agencies with the Ministry, enhancing the role of board of the company in the utilisation of CSR funds,  flexibility  to  board  for  spending  as  per  project  requirements,  treatment  of unspent as well as set-off of excess amount spent under CSR, impact assessment of CSR projects, creation and acquisition of capital assets through CSR and enhanced disclosure of CSR activities etc.

(e):  All  data  related  to  CSR  filed  by  companies  in  the  MCA21  registry,  including Aspirational  District-wise,  is  available  in  public  domain  and  can  be  accessed  at www.csr.gov.in. As per filings made by the Companies in the MCA21 registry, the CSR spent by all companies in the Aspirational Districts for the financial years 2017-18, 2018-19 and 2019-20 is given below:

| Aspirational Districts (INR Cr.)   |   FY 2017-18 |   FY 2018-19 |   FY 2019-20 |
|------------------------------------|--------------|--------------|--------------|
| Aspirational Districts (INR Cr.)   |        232.8 |       307.51 |       104.04 |

(Data upto 30.09.2020) (Source: National CSR Data Portal)

(f):    CSR is a Board driven process and the Board of the company is empowered to plan,  decide,  execute  and  monitor  CSR  activities  of  the  company  based  on  the recommendation  of  its  CSR  Committee.  The  Government  has  instituted  National Corporate  Social  Responsibility  Awards  (NCSRA)  as  an  official  recognition  at  the highest  level  for  outstanding  contribution  made  by  companies  through  their  CSR activities.  The  categories  of  the  award,  inter-alia,  includes  CSR  in  Aspirational Districts/Difficult  Terrains  and  for  contribution  in  National  priority  areas  including Environment, Sustainable Development and Solar Energy.

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