Lok Sabha Question No. 191 (UNSTARRED), answered on 2019-11-18
Subject: Monitoring of CSR Funds
Ministry: CORPORATE AFFAIRS
Asked by: M.K. Vishnu Prasad, Hemant Tukaram Godse, Sudhakar Tukaram Shrangre, Sanjay Jaiswal, Rajiv Pratap Rudy, (Dr.) Ram Shankar Katheria

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 191 ANSWERED ON MONDAY THE 18 TH  NOVEMBER, 2019 KARTIKA 27, 1941 (SAKA)

## MONITORING OF CSR FUNDS QUESTION

191. DR. VISHNU PRASAD M.K.:

SHRI HEMANT TUKARAM GODSE:

SHRI SUDHAKAR TUKARAM SHRANGARE:

DR. SANJAY JAISWAL:

SHRI RAJIV PRATAP RUDY:

DR. RAM SHANKAR KATHERIA:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a) the details of the funds utilised and unutilised along with the major activities/ programmes undertaken under Corporate Social Responsibility (CSR) by various public and private sector companies including State Bank of India and Life Insurance Corporation of India in the country during each of the last three years, State/UT-wise including Maharashtra and Uttar Pradesh;
- (b)  whether  there  is  disparity  between  the  CSR  funds  of  various  States,  if  so,  the  reasons therefor;
- (c)  whether there has been no CSR work by companies in the Latur region of Maharashtra during the last two decades despite many parts of the State being drought struck and if so, the details thereof along with any directions to companies given by the Government in this regard;
- (d) whether the Government proposes to incentivise companies for CSR investment in areas of strategic  and  developmental  importance  like  education,  health  care  etc.,  if  so,  the  details thereof including any innovative CSR programme identified by the Government in the country;
- (e) whether Government has constituted any monitoring mechanism to oversee the spending done by companies under CSR head and whether people and organisations are actually getting benefited by it, if so, the details thereof along with any other steps taken/proposed to be taken by the Government in this regard; and
- (f) the efforts made by the Government for compliance of the CSR provisions by the defaulting public sector undertakings?

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): On the basis of filings made by the Companies in the MCA 21 registry, the details of the Corporate Social responsibility (CSR)  funds spent by the  various public and   private   sector

कारपोरेट कार्य मंत्री

companies under the Companies Act, 2013 for the financial years 2015-16, 2016-17 and 201718 are given below:

|                   | Year of Filing   | Year of Filing                  | Year of Filing   | Year of Filing                  | Year of Filing   | Year of Filing                  |
|-------------------|------------------|---------------------------------|------------------|---------------------------------|------------------|---------------------------------|
|                   | 2015-16          | 2015-16                         | 2016-17          | 2016-17                         | 2017-18          | 2017-18                         |
| Nature of Company | No. of Companies | Total Amount Spent (in Rs. Cr.) | No. of Companies | Total Amount Spent (in Rs. Cr.) | No. of Companies | Total Amount Spent (in Rs. Cr.) |
| PSUs              | 532              | 4,214.67                        | 546              | 3,295.98                        | 527              | 2,553.36                        |
| Private Companies | 17758            | 10,302.52                       | 18993            | 11,033.55                       | 20870            | 11,067.15                       |
| Total             | 18290            | 14,517.19                       | 19539            | 14,329.53                       | 21397            | 13,620.51                       |

(Data upto 30.06.2019) [Source: National CSR Data Portal]

State Bank of India(SBI) and Life Insurance Corporation of India(LIC) are incorporated under separate statutes and thus not covered under the Companies Act, 2013 and accordingly, CSR provisions as prescribed under Section 135 of the Companies Act, 2013 is not applicable.

The details of the CSR funds spent by Companies State/UT-wise including Maharashtra and Uttar Pradesh during financial years 2015-16, 2016-17 and 2017-18 are annexed.

- (b) & (c):   CSR is a Board driven process.  The Board of the company is empowered to decide the activities to be undertaken as per Schedule VII of the Companies Act, 2013 taking into consideration the recommendation of its CSR committee. The Government has no role in this regard. All data related to CSR as filed by companies in MCA21 registry is available in public domain which can be accessed at www.csr.gov.in.
- (d):    Under  the  CSR  provisions  of  the  Companies  Act,  2013  and  rules  thereof,  no  such incentives is provided by the Government to Companies.
- (e) & (f): The entire CSR architecture is disclosure based and CSR mandated companies are required to file details of CSR initiatives annually in MCA21 registry. Centralized Scrutiny and Prosecution Mechanism was setup to monitor CSR compliance by companies. Whenever any violation  of  CSR  provisions  is  reported,  action  against  such  non-compliant  Companies  are initiated as per provisions of Companies Act, 2013 after due examination of records. So far, sanction  for  prosecution  has  been  accorded  in  366  cases.  All  CSR  related  offences  are compoundable. So far 118 applications for compounding have been made and 37 cases have been compounded.

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## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 191

| STATE/UT-WISE CSR EXPENDITURE (IN RS. CRORES )   | STATE/UT-WISE CSR EXPENDITURE (IN RS. CRORES )   | STATE/UT-WISE CSR EXPENDITURE (IN RS. CRORES )   | STATE/UT-WISE CSR EXPENDITURE (IN RS. CRORES )   |
|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|
| State/UTs                                        | FY 2015-16                                       | FY 2016-17                                       | FY 2017-18                                       |
| Andaman And Nicobar                              | 0.55                                             | 0.83                                             | 0.76                                             |
| Andhra Pradesh                                   | 1,294.28                                         | 753.53                                           | 269.11                                           |
| Arunachal Pradesh                                | 1.48                                             | 24.05                                            | 11.94                                            |
| Assam                                            | 164.60                                           | 269.92                                           | 86.23                                            |
| Bihar                                            | 124.62                                           | 100.77                                           | 42.17                                            |
| Chandigarh                                       | 5.34                                             | 21.99                                            | 20.51                                            |
| Chhattisgarh                                     | 241.16                                           | 84.94                                            | 71.61                                            |
| Dadra And Nagar Haveli                           | 12.03                                            | 7.58                                             | 6.93                                             |
| Daman And Diu                                    | 2.43                                             | 2.63                                             | 20.09                                            |
| Delhi                                            | 493.34                                           | 520.66                                           | 540.79                                           |
| Goa                                              | 30.15                                            | 37.89                                            | 53.34                                            |
| Gujarat                                          | 551.43                                           | 870.84                                           | 768.96                                           |
| Haryana                                          | 375.62                                           | 389.60                                           | 262.02                                           |
| Himachal Pradesh                                 | 52.29                                            | 24.03                                            | 60.53                                            |
| Jammu And Kashmir                                | 107.81                                           | 42.74                                            | 14.75                                            |
| Jharkhand                                        | 117.04                                           | 95.69                                            | 45.88                                            |
| Karnataka                                        | 784.66                                           | 886.36                                           | 950.92                                           |
| Kerala                                           | 148.12                                           | 135.47                                           | 158.06                                           |
| Lakshadweep                                      | 0.30                                             | -                                                | 2.07                                             |
| Madhya Pradesh                                   | 185.51                                           | 286.60                                           | 147.43                                           |
| Maharashtra                                      | 2,052.23                                         | 2,487.94                                         | 2,527.04                                         |
| Manipur                                          | 6.28                                             | 12.35                                            | 4.03                                             |
| Meghalaya                                        | 5.59                                             | 10.97                                            | 5.49                                             |
| Mizoram                                          | 1.07                                             | 0.08                                             | 0.23                                             |
| Nagaland                                         | 0.96                                             | 0.92                                             | 0.36                                             |
| Odisha                                           | 624.05                                           | 316.71                                           | 469.34                                           |
| Puducherry                                       | 6.46                                             | 7.43                                             | 6.51                                             |
| Punjab                                           | 69.93                                            | 75.83                                            | 88.51                                            |
| Rajasthan                                        | 501.45                                           | 327.15                                           | 263.33                                           |
| Sikkim                                           | 1.98                                             | 6.83                                             | 6.84                                             |
| Tamil Nadu                                       | 633.24                                           | 550.94                                           | 619.42                                           |
| Telangana                                        | 265.40                                           | 259.88                                           | 291.14                                           |
| Tripura                                          | 1.47                                             | 1.25                                             | 1.83                                             |
| Uttar Pradesh                                    | 423.79                                           | 327.48                                           | 298.40                                           |
| Uttarakhand                                      | 73.17                                            | 101.52                                           | 82.51                                            |
| West Bengal                                      | 415.42                                           | 290.34                                           | 280.25                                           |
| NEC/ Not mentioned                               | -                                                | 7.63                                             | 132.04                                           |
| PAN India*                                       | 4,741.95                                         | 4,988.17                                         | 5,009.16                                         |
| Grand Total                                      | 14,517.19                                        | 14,329.53                                        | 13,620.51                                        |

(Data upto 30.06.2019) [Source: National CSR Data Portal]

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

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