Lok Sabha Question No. 4 (STARRED), answered on 2021-07-19
Subject: CSR Spending in Rajasthan
Ministry: CORPORATE AFFAIRS
Asked by: Hanuman Beniwal

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

STARRED QUESTION NO. 4 ANSWERED ON MONDAY, JULY 19, 2021/ ASHADHA 28, 1943 (SAKA)

## CSR SPENDING IN RAJASTHAN

## QUESTION

## *4.  SHRI HANUMAN BENIWAL:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a) the details of the criteria and provisions laid  down for the industries and the oil, gas and energy sector companies for spending the Corporate Social Responsibility (CSR) funds;

- (b) whether the Government proposes to issue instructions for spending the full  amount  of  CSR  funds  of  the  oil,  gas  and  energy  sector  companies operating  in  Western  Rajasthan  including  Barmer,  Jaisalmer  and  Jalore districts on the development activities in the concerned districts itself in view of the backwardness of these districts;

- (c) if so, the details thereof along with the time by which the said instructions are likely to be issued;

- (d) if not, the reasons therefor; and

- (e) the item-wise and activity-wise details of expenditure under CSR fund by the  companies operating in  Barmer,  Jaisalmer,  Jalore,  Nagaur,  Jodhpur and Pali districts of Rajasthan during the last three years along with the amount of CSR fund of the companies operating in these districts spent in other States?

## ANSWER

THE MINISTER OF FINANCE AND CORPORATE AFFAIRS                      (SHRIMATI NIRMALA SITHARAMAN) वित्त एिं कारपोरेट कार्य मंत्री ( श्रीमती विमयला सीतारामि )

- (a) to (e):  A Statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN ANSWER TO PART (a) TO (e) OF LOK SABHA STARRED QUESTION NO. *4 (4 TH  POSITION) FOR 19 th  JULY, 2021 REGARDING CSR SPENDING IN RAJASTHAN

- (a)  to  (d):    The  Government  provides  the  broad  framework  for  Corporate  Social Responsibility  (CSR)  through  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, including oil, gas and energy sector companies, 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 towards CSR as  per  the  CSR  Policy  of  the  Company.  The  activities  undertaken  towards  CSR should  relate  to  areas  or  subjects  specified  in  Schedule  VII  of  the  Act.  The operational framework with respect to CSR is contained in the Companies (CSR Policy) Rules, 2014.

The first proviso to Section 135 (5) of the Act provides that the company shall give preference to the local area and areas around it where it operates.  However, the  emphasis  on  local  area  is  only  directory  and  not  mandatory  in  nature  and companies need to balance local area preference with national priorities. Under the Act, 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 does not issue any specific direction to the companies to spend in any particular area or activity.

- (e)  All  data related to CSR filed by companies in MCA21 registry is available in public domain and can be accessed at www.csr.gov.in. As per the filings made by the companies in the MCA21 registry, the CSR  amount spent in  Barmer, Jaisalmer, Jalore, Nagaur, Jodhpur and Pali districts of Rajasthan by all the companies,including the companies operating in those districts, for the financial years 2017-18, 2018-19 and 2019-20 respectively are given below:

| District-wise CSR Spent in the State of Rajasthan (In Rs. Crore)   | District-wise CSR Spent in the State of Rajasthan (In Rs. Crore)   | District-wise CSR Spent in the State of Rajasthan (In Rs. Crore)   | District-wise CSR Spent in the State of Rajasthan (In Rs. Crore)   | District-wise CSR Spent in the State of Rajasthan (In Rs. Crore)   |
|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|
| Districts                                                          | FY 2017-18                                                         | FY 2018-19                                                         | FY 2019-20                                                         | Total                                                              |
| Barmer                                                             | 0.27                                                               | 25.85                                                              | 15.80                                                              | 41.92                                                              |
| Jaisalmer                                                          | 1.54                                                               | 0.03                                                               | 3.40                                                               | 4.97                                                               |
| Jalore                                                             | 0.64                                                               | 1.03                                                               | 2.42                                                               | 4.09                                                               |
| Jodhpur                                                            | 1.67                                                               | 6.69                                                               | 4.46                                                               | 12.82                                                              |
| Nagaur                                                             | 1.44                                                               | 0.39                                                               | 0.85                                                               | 2.68                                                               |
| Pali                                                               | 4.63                                                               | 10.34                                                              | 3.40                                                               | 18.7                                                               |

(Data upto 31.03.2021) [Source: National CSR Data Portal

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