Lok Sabha Question No. 4152 (UNSTARRED), answered on 2023-03-27
Subject: CSR Contribution by Cement Industry
Ministry: CORPORATE AFFAIRS
Asked by: Hasnain Masoodi

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 4152

ANSWERED ON MONDAY, MARCH 27, 2023/CHAITRA 6, 1945 (SAKA)

## CSR CONTRIBUTION BY CEMENT INDUSTRY QUESTION

4152.  SHRI HASNAIN MASOODI:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a)  whether the Cement Industry at Khrew, district Pulwama comprising of seven cement plants with a capacity of 2500 tonnes per day (TPD) and collecting net profit of  approximately Rs. 500 crore per annum is contributing to the Corporate Social Responsibility (CSR) as required under the Companies Act, 2013;
- (b) if so, the details of the CSR contributions by the cement industry for the years 2020, 2021 and 2022 respectively, year-wise;
- (c) the steps taken by the Government against the erring companies in case of failure of CSR contributions under Companies Act, 2013; and
- (d) the details of the utilization of CSR contribution by the cement industry during the said period?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE)  OF  THE  MINISTRY  OF  PLANNING  AND  MINISTER  OF  STATE  IN  THE MINISTRY OF CORPORATE AFFAIRS

## [RAO INDERJIT SINGH]

- (a) to (d): The broad framework for Corporate Social Responsibility (CSR) has been provided under Section 135 of the Companies Act, 2013 ('Act'), Schedule VII of the Act and Companies (CSR Policy) Rules, 2014. Section 135 of the Act mandates every company having net worth of Rs. 500 crore or more, or turnover of Rs. 1000 crore or more, or net profit of Rs. 5 crore or more during the immediately preceding financial year, to spend at least two per cent of the average net profits of the company made over immediately preceding three financial years towards CSR as per the CSR Policy of the Company.

The CSR framework is disclosure based and companies are required to file details of CSR activities annually in MCA21 registry. All data related to CSR filed by companies in the MCA21 registry, including company-wise, state-wise, district-wise are available in the public domain at www.csr.gov.in. The data of cement industry is not separately maintained  by  the  Ministry.  However,  on  the  basis  of  annual  filings  made  by  the Companies in the MCA 21 registry, the details of CSR spent by eligible companies in the State of Jammu and Kashmir during the Financial Years (FY) 2019-20 and 202021 are as follows:

| State/UT                              |   FY 2019-20 |   FY 2020-21 |
|---------------------------------------|--------------|--------------|
| Jammu and Kashmir* (Amount in Crores) |        25.27 |        35.47 |

(Data up to 30.09.2022)   [Source: National CSR Data Portal]

* includes UTs of Jammu & Kashmir and Ladakh.

Further, the companies are required to file the CSR data for the FY 2021-22 on or before 31.03.2023.

Whenever  any  violation  of  CSR  provisions  is  reported,  action  against  such  noncompliant Companies is initiated as per provisions of the Act after due examination of  records  and  following  due  process  of  law.  Now,  the  non-compliance  of  CSR provisions has been converted as a civil wrong w. e. f. 22nd January, 2021.

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