Lok Sabha Question No. 3367 (UNSTARRED), answered on 2021-08-09
Subject: CSR Funds
Ministry: FINANCE
Asked by: Balashowry Vallabbhaneni

## GOVERNMENT OF INDIA MINISTR Y OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO.3367 TO BE ANSWERED ON MONDAY, 9"AUGUST, 2021/ SRAVANA 18, 1943 (SAKA)

## CSR FUNDS

## QUESTION

## 3367.SHRI BALASHOWRY VALLABHANENI:

Will the Minister of Finance be pleased to state:

- a) whether the Ministry monitors and regulates the utilisation of CSR funds of all Central PSUs; State PSUsand private companies in the country;
2. the details of CSR funds available and utilized by each of the Andhra Pradesh State Public Sector Undertakings for the fiscal year 2020- 21 , company-wise;
3. (b) the details of Corporate Social Responsibility funds available and utilised by each of the Central Public Sector Undertakings for the fiscal year 2019-20and 2020-21;
4. d the names and amount spent by Non-PSUs companies who utilised CSR funds in Andhra Pradesh for the fiscal year 2020- 21;and
5. (e) the fund allocated to Government run programmes for Covid relief out of the total CSR expenditure in 2020-21?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRIPANKAJ CHAUDHARY)

(a) The Government provides the broad framework for Corporate Social Responsibility (CSR) through Section 135 of the   Companies 2013 ('Act' ), Schedule VII of the Act and Companies (CSR Rules, 2014. 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 based on the recommendation of its CSR Committee. Policy)

For Central PSUsthe Department of Public Enterpriseshas issued guidelines to all administrative Ministries and CPSEs for   adopting a theme based focused   approach   every year on CSR expenditure by CPSEs, These   guidelines   inter-alia   provide that CSR   expenditure   for  such thematic   programmes   should CSR expenditure of CPSEs and the aspirational districts identified by NITI may be given preference. Aayog

The CSR architecture is disclosure based and CSR mandated companies are required to file details of CSR activities  annually in the MCA2I registry. Whenever any violation of CSR

provisions is   reported, action   against such   non-compliant   Companies are initiated as provisions of the Act after due examination ofrecords and following due of per process 'law.

wise & state-wise, is available in public domain registry, including companycompanies are (AGM) within six months from the end of financial year; Thereafter;, financial statements and board report containing disclosure about CSR; are to be filed in MCA2I within 30 of the AGM: Thus, the CSR data for the Financial Year 2020 21 is not available. However; as per made by the Companies in the MCA2I CSR spent by all the companies including Public Sector Undertakings registry, the (PSUs) for the financial year 2019-20 is given in following table: Act, Meeting days filings

|                            | FY 2019-20       | FY 2019-20                     |
|----------------------------|------------------|--------------------------------|
| Nature of Company          | No. of Companies | Total Amount Spent (Rs. Crore) |
| Public Sector_Undertakings | 439              | 4650                           |
| Non-PSUs                   | 20910            | 16581                          |
| Grand Total                | 21349            |                                |

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

(e): The of Corporate Affairs vide General Circular no.10/2020 dated 23.03.2020 had clarified that CSR funds may be spent by the companies for various activities related to COVID 19. However; there is no provision for allocation of CSR funds for government run programmes Ministry

- under the existing framework.