Lok Sabha Question No. 3248 (UNSTARRED), answered on 2021-08-09
Subject: Investment in Renewable Energy through CSR
Ministry: CORPORATE AFFAIRS
Asked by: Sanganna Amarappa Karadi

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 3248 ANSWERED ON MONDAY, 9 th  AUGUST, 2021/SRAVANA 18, 1943 (SAKA) INVESTMENT IN RENEWABLE ENERGY THROUGH CSR

## QUESTION

3248.  SHRI SANGANNA AMARAPPA:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether  investments  were  made  in  renewable  energy  projects  by  the companies as part of their Corporate Social Responsibility (CSR) in Karnataka;
- (b) if so, the details thereof;
- (c) whether the Government has prepared an action plan for implementation of the policy regarding Corporate Social Responsibility (CSR) with a view to making it more effective and result-oriented and if so, the details thereof; and
- (d) the details of the works/activities carried out by Public Sector Undertakings (PSUs) and private companies/corporate houses along with the expenditure made/shared thereon in the Karnataka State during the last three years and the current year under CSR?

## 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)  &  (b):    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. The Schedule VII of  the  Act  indicates  the  activities  that  can  be  undertaken  by  the  companies  as eligible CSR activities. The Ministry vide General Circular no. 21/2014 dated 18th June, 2014 clarified that items mentioned in Schedule VII are broad based and can be interpreted liberally.  Item no. (iv) of Schedule VII covers ' ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agro forestry, conservation of natural resources and maintaining quality of soil, air and water ;' and also includes 'renewable energy projects'. The CSR spent under item no. (iv) of Schedule VII of the Act in Karnataka for the financial years 2017-18, 201819 and 2019-20 respectively is as follows:

| State                 |   FY 2017-18 |   FY 2018-19 |   FY 2019-20 |
|-----------------------|--------------|--------------|--------------|
| Karnataka (INR Crore) |       279.74 |       178.51 |        192.9 |

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

(c):   Since the inception of CSR provision in 2014, the Government has taken various initiatives for effective implementation of CSR by way of issuing clarifications,  and amendment in the CSR provisions and  rules made thereunder  from time to time. The  recent  amendments  to  CSR  provisions  aim  at  strengthening  the  CSR ecosystem by improving the disclosures, simplifying the compliances, bringing in more objectivity and transparency, and entrusting more responsibility on the Board  of  the  company.  These  amendments  inter-alia,  include  mandatory registration of implementing agencies with the Ministry, treatment of unspent amount,  impact  assessment  of  CSR  projects,  modalities  for  creation  and acquisition of capital assets through CSR etc.  Further, Ministry also organizes various  workshops,  webinars  and  capacity  building  programmes  related  to  CSR through Indian Institute of Corporate Affairs (IICA) and professional institutes for sensitizing the stakeholders on policy related matters. Similarly, Ministry had also instituted  National  CSR  Awards  (NCSRA)  to  recognize  corporate  initiatives  and excellence in CSR.

(d):  As per the Act, companies are required to hold Annual General Meeting (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 MCA21 within 30  days  of  the  AGM.    Thus,  the  CSR  data  for  the  Financial  Year  2020-21  is  not available and filings for Financial Year 2021-22 are required to be made only after the  end  of  current  financial  year.    However,  on  the  basis  of  filings  made  by  the companies  in  the  MCA21  registry,  the  CSR  spent  by  Public  Sector  Undertakings (PSUs) and private companies in Karnataka during the financial years 2017-18, 201819 and 2019-20 respectively is as follows:

| Company Type      | Amount Spent FY 2017-18   | Amount spent FY 2018-19   | Amount spent FY 2019-20   |
|-------------------|---------------------------|---------------------------|---------------------------|
| PSUs              | 131.64                    | 211.95                    | 214.44                    |
| Non-PSUs          | 902.68                    | 1,012.97                  | 1,169.22                  |
| Total (INR Crore) | 1,034.32                  | 1,224.92                  | 1,383.66                  |

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

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