Lok Sabha Question No. 2769 (UNSTARRED), answered on 2022-03-21
Subject: Strengthening of CSR Ecosystem
Ministry: CORPORATE AFFAIRS
Asked by: Vijay Baghel, E. T. Mohammed Basheer, Arun Sao

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

LOK SABHA UNSTARRED QUESTION NO. 2769 ANSWERED ON MONDAY, MARCH 21, 2022/ PHALGUNA 30, 1943 (SAKA)

## STRENGTHENING OF CSR ECOSYSTEM

## QUESTION

2769.  SHRI VIJAY BAGHEL:

SHRI E.T. MOHAMMED BASHEER: SHRI ARUN SAO:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a)  the  present  Corporate  Social  Responsibility  (CSR)  policy  approved  by  the Government for Public Sector Undertakings (PSUs);
- (b) whether the Government has taken any steps to strengthen the CSR ecosystem for  improving  disclosure  and  simplifying  the  CSR  compliances  by  various companies including PSUs; and
- (c) if so, the details thereof and plan of action in this regard?

## 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) :  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. These are applicable to all companies including Public Sector Undertakings (PSUs) 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.

Further, as per the inputs provided by Department of Public Enterprises (DPE), it has been  issuing  guidelines  from  the  financial  year  2018-19  to  all  administrative Ministries  and  Central  Public  Sector  Enterprises  (CPSEs)  for  adopting  a  themebased  focussed  approach  every  year  on  CSR  expenditure  by  the  CPSEs.  These instructions, inter-alia, provide that CSR expenditure for such thematic programmes should be around 60% of annual CSR expenditure of CPSEs and the aspirational districts as identified by National Institution for Transforming India (NITI) Aayog may be given preference in CSR expenditure.

(b) & (c): Under the Act, CSR is a Board driven process and the Board of the company is  empowered  to  plan,  decide,  execute  and  monitor  the  CSR  activities  of  the company based on the recommendation of its CSR committee. The CSR framework is disclosure based and CSR mandated companies are required to file details of CSR activities annually in MCA21 registry. All data related to CSR filed by companies in MCA21 registry, including company-wise and PSUs is available in public domain at www.csr.gov.in. Section 135 of the Act was amended vide Companies (Amendment) Act, 2019 and Companies (Amendment) Act, 2020. These amendments provided for the transfer of unspent CSR amount and made the non-compliance of CSR provisions a civil wrong w.e.f. 22nd January 2021. Further, Companies (CSR Policy) Rules, 2014 was also amended which have strengthened the CSR eco-system by bringing more objectivity, transparency, entrusting more  responsibility on the board and enhancing the disclosures by the companies.

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