Lok Sabha Question No. 1966 (UNSTARRED), answered on 2022-03-14
Subject: Monitoring Mechanism for CSR Management
Ministry: CORPORATE AFFAIRS
Asked by: Vijay Baghel, Chandra Prakash Joshi, Sangamlal Kadedin Gupta, Sunil Kumar Soni, Arun Sao, Mohanbhai Kalyanji Kundariya, Brijbhushan Sharan Singh, Pratap Chandra Sarangi, Rajeshbhai Naranbhai Chudasama

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 1966 ANSWERED ON MONDAY, MARCH 14, 2022/ PHALGUNA 23, 1943 (SAKA)

## MONITORING MECHANISM FOR CSR MANAGEMENT

## QUESTION

1966.  SHRI VIJAY BAGHEL:

SHRI CHANDRA PRAKASH JOSHI:

SHRI SANGAM LAL GUPTA:

SHRI SUNIL KUMAR SONI:

SHRI ARUN SAO:

SHRI MOHANBHAI KALYANJI KUNDARIYA:

SHRI BRIJBHUSHAN SHARAN SINGH:

SHRI PRATAP CHANDRA SARANGI:

SHRI RAJESHBHAI CHUDASAMA:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether there is any monitoring mechanism for Corporate Social Responsibility (CSR) management for social welfare across the country and if so, the details thereof and if not, the reasons therefor;
- (b)  whether  there  is  any  provision  to  establish  common  CSR  activities  management group/committee and if so, the details thereof;
- (c) the details of the list of activities and amount under CSR spent by various Corporates and PSUs during each of the last three years in the country, State-wise including Odisha and Uttar Pradesh; and
- (d) the details of the impact and outcome of such activities for the benefit of the people?

## 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  (c):    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. 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 recommendations of its CSR Committee. The CSR framework is disclosure  based  and  CSR  mandated  companies  are  required  to  file  details  of  CSR activities annually in the MCA21 registry. The corporate governance framework along with the existing legal provisions such as mandatory disclosures, accountability of

the CSR Committee and the Board, provisions for statutory audit of accounts of the company  etc.  provide  safeguards  in  this  regard.  Whenever  any  violation  of  CSR provisions is reported, action against such non-compliant 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. 22 nd  January, 2021.

All data related to CSR filed by companies in MCA21 registry is available in public domain at  www.csr.gov.in. On the basis of the filings made by  the companies in the MCA 21 registry,  details  of  CSR  funds  spent  by  all  the  companies  including  Public  Sector Undertakings  (PSUs),  in  different  States/Union  Territories(UTs)  (including  Odisha  and Uttar Pradesh) for the financial years 2018-19, 2019-20 and 2020-21 is at Annexure.

Regarding CSR data for financial year 2020-21, it is informed that the companies are required  to  hold  Annual  General  Meeting  (AGM)  within  six  months  from  the  end  of financial year. Thereafter, financial statements and board reports containing disclosures about CSR, are to be filed in MCA21 within 30 days of the AGM. In view of the disruption caused by COVID-19 pandemic, Registrars of Companies have accorded extension of time  till  30 th   November,  2021  for  conduct  of  AGMs  by  companies.  The  Ministry  vide General Circular No. 01/2022 dated 14.02.2022 has relaxed the levy of additional fees till 15.03.2022 for filing of financial statement in respect of the financial year 2020-21. (d): The philosophy of CSR is to engage corporates as partners in the socio-economic development of the country by leveraging their managerial efficiency, best practices, technology  and  innovation  in  the  delivery  of  public  good  and  services.  Since  the enactment of CSR provision w.e.f. April 2014, companies are responding positively and have shown encouraging signs in adopting the culture of being responsible towards society. This is manifested through the increase in CSR spent by the companies during the period 2014-15 to 2020-21. During this period, companies have spent around Rs.1.22 lakh crores in different activities such as health, education, poverty eradication, hunger, women empowerment, welfare of  armed  forces  veterans,  environment,  sports,  rural development, slum development, welfare  of  weaker  sections,  disaster  management, research and development in the field of science, technology, engineering and medicine etc.

******

## Annexure

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 1966 FOR 14.03.2022

|                 | States/UT-wise CSR Expenditure (in Rs. Cr.)   | States/UT-wise CSR Expenditure (in Rs. Cr.)   | States/UT-wise CSR Expenditure (in Rs. Cr.)   |              |
|-----------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|--------------|
| S.No.           | States/UTs                                    | FY 2018-19                                    | FY 2019-20                                    | FY 2020-21   |
| 1               | Andaman And Nicobar                           | 0.82                                          | 1.29                                          | 2.26         |
| 2               | Andhra Pradesh                                | 668.72                                        | 720.62                                        | 588.67       |
| 3               | Arunachal Pradesh                             | 24.56                                         | 18.02                                         | 6.42         |
| 4               | Assam                                         | 210.22                                        | 288.49                                        | 160.78       |
| 5               | Bihar                                         | 140.14                                        | 144.16                                        | 56.29        |
| 6               | Chandigarh                                    | 11.95                                         | 15.72                                         | 7.20         |
| 7               | Chhattisgarh                                  | 150.30                                        | 261.61                                        | 283.14       |
| 8               | Dadra And Nagar Haveli                        | 13.48                                         | 19.12                                         | 7.02         |
| 9               | Daman And Diu                                 | 6.25                                          | 9.69                                          | 3.13         |
| 10              | Delhi                                         | 815.20                                        | 936.04                                        | 839.65       |
| 11              | Goa                                           | 49.46                                         | 48.53                                         | 32.53        |
| 12              | Gujarat                                       | 1,091.79                                      | 995.60                                        | 1,168.19     |
| 13              | Haryana                                       | 381.41                                        | 528.81                                        | 398.45       |
| 14              | Himachal Pradesh                              | 81.25                                         | 82.10                                         | 98.59        |
| 15              | Jammu And Kashmir                             | 36.55                                         | 25.54                                         | 33.82        |
| 16              | Jharkhand                                     | 112.35                                        | 156.52                                        | 188.35       |
| 17              | Karnataka                                     | 1,280.24                                      | 1,483.54                                      | 966.62       |
| 18              | Kerala                                        | 444.12                                        | 305.04                                        | 321.10       |
| 19              | Lakshadweep                                   | 0.39                                          | 1.00                                          | -            |
| 20              | Madhya Pradesh                                | 255.84                                        | 216.48                                        | 273.88       |
| 21              | Maharashtra                                   | 3,206.84                                      | 3,426.79                                      | 2,646.46     |
| 22              | Manipur                                       | 7.81                                          | 14.21                                         | 6.28         |
| 23              | Meghalaya                                     | 18.12                                         | 19.74                                         | 8.71         |
| 24              | Mizoram                                       | 0.11                                          | 0.25                                          | 0.49         |
| 25              | Nagaland                                      | 2.14                                          | 5.10                                          | 2.98         |
| 26              | Odisha                                        | 690.77                                        | 752.43                                        | 495.72       |
| 27              | Puducherry                                    | 9.15                                          | 11.40                                         | 10.44        |
| 28              | Punjab                                        | 167.86                                        | 192.05                                        | 95.16        |
| 29              | Rajasthan                                     | 603.84                                        | 735.05                                        | 454.08       |
| 30              | Sikkim                                        | 5.87                                          | 12.72                                         | 13.85        |
| 31              | Tamil Nadu                                    | 900.36                                        | 1,110.15                                      | 749.03       |
| 32              | Telangana                                     | 440.07                                        | 451.92                                        | 343.38       |
| 33              | Tripura                                       | 23.06                                         | 9.40                                          | 8.20         |
| 34              | Uttar Pradesh                                 | 524.46                                        | 584.59                                        | 680.24       |
| 35              | Uttarakhand                                   | 178.19                                        | 128.64                                        | 113.10       |
| 36              | West Bengal                                   | 386.69                                        | 454.87                                        | 316.98       |
| 37              | NEC/ Not mentioned *                          | 4.74                                          | 31.66                                         | 176.71       |
| 38              | PAN India **                                  | 7,218.07                                      | 10,664.97                                     | 8,802.30     |
| Grand Total (in | Cr.)                                          | 20,163.18                                     | 24,863.84                                     | 20,360.25*** |

( Data upto 31.12.2021) [Source: National CSR Data Portal]

*Companies did not specify the names of States where projects were undertaken.

** Companies indicated more than one State where projects were undertaken.

*** Data for FY 2020-21 is subject to change as the levy of additional fees for the late filing has been relaxed till 15.03.2022.

*******