Lok Sabha Question No. 2377 (UNSTARRED), answered on 2019-07-08
Subject: Amendments in CSR Norms
Ministry: CORPORATE AFFAIRS
Asked by: Ramdas Chandrabhanji Tadas, Chandra Prakash Joshi, Kanakmal Katara, Feroze Varun Gandhi, H. Vasanthakumar, Dibyendu Adhikari

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 2377 ANSWERED ON MONDAY THE 8th JULY, 2019

ASHADHA 17, 1941 (SAKA)

## AMENDMENTS IN CSR NORMS QUESTION

† 2377. SHRI RAMDAS C. TADAS:

SHRI CHANDRA PRAKASH JOSHI:

SHRI KANAKMAL KATARA:

SHRI FEROZE VARUN GANDHI:

SHRI H. VASANTHAKUMAR:

SHRI DIBYENDU ADHIKARI:

Will the Minister of CORPORATE AFFAIRS

कारपोरेट कार्य मंत्री

be pleased to state:

- (a) whether the Government has amended/proposes to amend the Company's Act to include/give more representation to Women Directors on Corporate Boards of Public and Private Sector Companies, if so, the details thereof;
- (b)  if  not,  the  reasons  therefor  and  the  other  steps  taken/being  taken  by  the Government to increase the representation of women executives in Public and Private sectors;
- (c)  the  steps  taken/proposed  to  be  taken  by  the  Government  including amendments in the existing laws to make Corporate Governance in the country
- simpler, more accountable, transparent and democratic;
- (d) whether the Government has received any representations from Public Sector Undertakings (PSUs) to revise the 2% Corporate Social Responsibility (CSR) norm and if so, the details thereof;
- (e) the details of total amount spent by the companies under CSR dedicated to increase  employment  opportunities  and  income  of  the  local  community  and people affected from mining project and environment protection and sustainable development; and
- (f) if so, the details thereof and action taken by the Government thereon?

## 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 (c): The second proviso to sub-section (1) of section 149 of the Companies Act,  2013  read  with  rule  3  of  Companies  (Appointment  and  Qualification  of Directors) Rules, 2014 provides that every listed company and every other public company having paid up share capital of Rs. 100 crore or more or having turnover

of Rs. 300 crore or more shall appoint at least one woman director. No further amendment is being considered in this regard.

Further,  the  Companies  Act,  2013(read  with  rules  made  thereunder)  has introduced  significant  changes  and  contains  adequate  provisions  related  to corporate governance viz disclosures to stakeholders, accountability of directors, auditors and key managerial personnel and investor protection.

(d):  Government  has  not  received  any  representations  from  Public  Sector Undertakings(PSUs) to revise the 2% Corporate Social Responsibility (CSR) norm.

(e) & (f): Schedule VII of the Act enlists areas or activities that qualify towards CSR spend. As per Section 135 (3) & (4) of the Act, the Board of the company has to ensure that the activities as are included in its CSR Policy are undertaken by the company. Further, the Government does not give any directions to Corporates to spend in any particular in area or activity, including Government Schemes.

As per the data obtained from the filings made by the companies in the MCA 21 registry,  the  details  of  the  Sector-wise  Corporate  Social  Responsibility  (CSR) funds spent by the companies under the Companies Act, 2013 for the financial years 2015-16, 2016-17 and 2017-18 are Annexed.

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ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 2377

| SECTOR-WISE CSR EXPENDITURE (IN RS. CRORES)    | SECTOR-WISE CSR EXPENDITURE (IN RS. CRORES)   | SECTOR-WISE CSR EXPENDITURE (IN RS. CRORES)   | SECTOR-WISE CSR EXPENDITURE (IN RS. CRORES)   |
|------------------------------------------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|
| Development Sector                             | FY 2015-16                                    | FY 2016-17                                    | FY 2017-18                                    |
| Agro Forestry                                  | 57.64                                         | 43.45                                         | 7.5                                           |
| Animal Welfare                                 | 66.66                                         | 78.3                                          | 16.54                                         |
| Armed Forces, Veterans, War Widows/ Dependents | 11.14                                         | 37.08                                         | 16.24                                         |
| Art And Culture                                | 119.08                                        | 304.43                                        | 212.43                                        |
| Clean Ganga Fund                               | 32.82                                         | 24.37                                         | 2.11                                          |
| Conservation Of Natural Resources              | 38.19                                         | 117.07                                        | 144.84                                        |
| Education                                      | 4081.73                                       | 4459.68                                       | 2705.3                                        |
| Environmental Sustainability                   | 809.86                                        | 1072.34                                       | 837.49                                        |
| Gender Equality                                | 73.24                                         | 72.69                                         | 11.04                                         |
| Health Care                                    | 2574.2                                        | 2468.75                                       | 1144.83                                       |
| Livelihood Enhancement Projects                | 400.82                                        | 514.17                                        | 473.11                                        |
| NEC/ Not Mentioned                             | 1065.23                                       | 388.96                                        | 0.00                                          |
| Other Central Government Funds                 | 332.92                                        | 417.99                                        | 215.66                                        |
| Poverty, Eradicating Hunger, Malnutrition      | 1238.87                                       | 604.9                                         | 421.21                                        |
| Prime Minister's National Relief Fund          | 217.23                                        | 157.58                                        | 60.4                                          |
| Rural Development Projects                     | 1379.09                                       | 1548.95                                       | 1066.52                                       |
| Safe Drinking Water                            | 173.84                                        | 145.9                                         | 107.86                                        |
| Sanitation                                     | 620.6                                         | 420.64                                        | 99.64                                         |
| Senior Citizens Welfare                        | 21.9                                          | 26.81                                         | 9.47                                          |
| Setting Up Homes And Hostels For Women         | 29.11                                         | 62.25                                         | 54.93                                         |
| Setting Up Orphanage                           | 17.99                                         | 16.27                                         | 30.42                                         |
| Slum Area Development                          | 14.31                                         | 51.46                                         | 4.7                                           |
| Socio-Economic Inequalities                    | 75.64                                         | 145.83                                        | 74.56                                         |
| Special Education                              | 127.07                                        | 164.8                                         | 56.81                                         |
| Swachh Bharat Kosh                             | 325.2                                         | 183.83                                        | 118.69                                        |
| Technology Incubators                          | 26.77                                         | 23.09                                         | 5.2                                           |
| Training To Promote Sports                     | 138.92                                        | 178.53                                        | 121.94                                        |
| Vocational Skills                              | 332.93                                        | 372.64                                        | 251.54                                        |
| Women Empowerment                              | 124.59                                        | 139.65                                        | 94.37                                         |
| Grand Total                                    | 14527.59                                      | 14242.41                                      | 8365.35                                       |

(On the basis of the filings made by the Companies upto 20.10.2018).

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