Lok Sabha Question No. 2789 (UNSTARRED), answered on 2023-08-07
Subject: Enhancement in CSR Activities of Companies
Ministry: CORPORATE AFFAIRS
Asked by: Dushyant Singh, Poonamben Hematbhai Maadam

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 2789 ANSWERED ON MONDAY, AUGUST 7, 2023 SRAVANA 16, 1945 (SAKA)

## ENHANCEMENT IN CSR ACTIVIES OF COMPANIES QUESTION

2789. SHRI DUSHYANT SINGH:

SHRIMATI POONAMBEN MAADAM:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether the Government has taken any measures to enhance Corporate Social Responsibility (CSR) activities of the company and to ensure their compliance with CSR regulations;
- (b) if so, the details thereof, if not, the reasons therefor along with the details of the CSR  work  undertaken  in  Gujarat  during  the  last  one  year,  district-wise  and development sector-wise;
- (c) whether the Government has implemented any policy supporting and incentivizing Research  and  Development  of  innovative  CSR  projects  and  technologies  which addresses societal and environmental challenges, if so, the details thereof; and (d) the manner in which the Government assess the impact and effectiveness of the CSR activities undertaken by the companies?

## 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 broad framework for Corporate Social Responsibility (CSR) has been provided through Section 135 of the Companies Act, 2013 ('Act'), Schedule VII of the Act and Companies (CSR Policy) Rules, 2014. Schedule VII of the Act indicates the eligible list of activities that can be undertaken by the companies as CSR. The items enlisted  in  the  Schedule  VII  of  the  Act  are  broad-based  and  can  be  interpreted liberally.  The  CSR  mandated  companies  can  undertake  any  of  the  activities mentioned in Schedule VII subject to fulfilment of provisions as contained in the Act and Companies (CSR Policy) Rules, 2014.

Further,  CSR  framework  is  disclosure  based  and  CSR  mandated  companies  are required to disclose the contents of its CSR Policy in its report and place it on the company's website, if any. The same is also required to file in MCA 21 registry with their financial statements. Whenever any violation of CSR provisions is reported, that is dealt as per provisions of the Act after due examination of records and following due process of law.  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 Government does not issue any specific direction to the companies to spend in any particular geographical area or activity.

District-wise and development sector wise CSR spent by the companies in the state of Gujarat are at Annexure-I and II respectively.

(c): item no. (ix) of the Schedule VII of the Act includes contribution to incubators or research and development projects in the field of science, technology, engineering and  medicine,  funded  by  the  Central  Government  or  State  Government  or  Public Sector Undertaking or any agency of the Central Government or State Government. Further,  the  amendments  in  the  Companies  (CSR  Policy)  Rules,  2014  as  notified on 22nd January, 2021 and 20 th  September, 2022 have strengthened the CSR ecosystem by bringing more objectivity, transparency, entrusting more responsibility on the Board and enlarging the disclosures by the companies.

(d): Rule 8 of the Companies (CSR Policy) Rules, 2014 contains provisions related to impact  assessment  of  CSR  projects  by  every  company  having  average  CSR obligation of 10 crore rupees or more in pursuance of sub-section (5) of section 135 of  the  Act,  in  the  three  immediately  preceding  financial  years,  shall  undertake impact assessment, through an independent agency, of their CSR projects having outlays of one crore rupees or more, and which have been completed not less than one year before undertaking the impact study.

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Annexure-I

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 2789 FOR 07.08.2023

| District wise summary of CSR Expenditure in Gujarat (Amount in crore)   | District wise summary of CSR Expenditure in Gujarat (Amount in crore)   | District wise summary of CSR Expenditure in Gujarat (Amount in crore)   | District wise summary of CSR Expenditure in Gujarat (Amount in crore)   | District wise summary of CSR Expenditure in Gujarat (Amount in crore)   |
|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|
| Sr. No.                                                                 | District                                                                | FY 2019-20                                                              | FY 2020-21                                                              | FY 2021-22                                                              |
| 1                                                                       | Ahmedabad                                                               | 145.56                                                                  | 210.78                                                                  | 506.05                                                                  |
| 2                                                                       | Amreli                                                                  | 9.40                                                                    | 7.38                                                                    | 10.32                                                                   |
| 3                                                                       | Anand                                                                   | 7.02                                                                    | 11.13                                                                   | 20.79                                                                   |
| 4                                                                       | Aravalli                                                                | -                                                                       | 0.52                                                                    | 0.22                                                                    |
| 5                                                                       | Banaskantha                                                             | 4.31                                                                    | 6.20                                                                    | 12.99                                                                   |
| 6                                                                       | Bharuch                                                                 | 28.95                                                                   | 60.03                                                                   | 77.49                                                                   |
| 7                                                                       | Bhavnagar                                                               | 11.46                                                                   | 40.75                                                                   | 47.89                                                                   |
| 8                                                                       | Botad                                                                   | 0.11                                                                    | 2.10                                                                    | 0.49                                                                    |
| 9                                                                       | Chhota Udaipur                                                          | 0.26                                                                    | 2.46                                                                    | 0.91                                                                    |
| 10                                                                      | Dahod                                                                   | 31.36                                                                   | 93.00                                                                   | 28.73                                                                   |
| 11                                                                      | Dang                                                                    | 0.41                                                                    | 1.57                                                                    | 3.18                                                                    |
| 12                                                                      | Devbhoomi Dwarka                                                        | 3.40                                                                    | 2.94                                                                    | 0.52                                                                    |
| 13                                                                      | Gandhinagar                                                             | 9.91                                                                    | 20.74                                                                   | 42.95                                                                   |
| 14                                                                      | Gir Somnath                                                             | 5.00                                                                    | 7.93                                                                    | 1.81                                                                    |
| 15                                                                      | Jamnagar                                                                | 2.05                                                                    | 33.85                                                                   | 60.94                                                                   |
| 16                                                                      | Junagadh                                                                | 1.19                                                                    | 2.25                                                                    | 6.93                                                                    |
| 17                                                                      | Kheda                                                                   | 4.38                                                                    | 6.71                                                                    | 13.97                                                                   |
| 18                                                                      | Kutch                                                                   | 18.28                                                                   | 34.69                                                                   | 73.48                                                                   |
| 19                                                                      | Mahisagar                                                               | -                                                                       | 0.02                                                                    | -                                                                       |
| 20                                                                      | Mehsana                                                                 | 17.00                                                                   | 15.73                                                                   | 21.46                                                                   |
| 21                                                                      | Morbi                                                                   | 2.49                                                                    | 1.68                                                                    | 2.12                                                                    |
| 22                                                                      | Narmada                                                                 | 1.81                                                                    | 3.40                                                                    | 25.65                                                                   |
| 23                                                                      | Navsari                                                                 | 1.36                                                                    | 2.27                                                                    | 8.56                                                                    |
| 24                                                                      | NEC/ Not Mentioned*                                                     | 510.73                                                                  | 628.83                                                                  | 166.61                                                                  |
| 25                                                                      | Panchmahal                                                              | 1.44                                                                    | 7.64                                                                    | 17.28                                                                   |
| 26                                                                      | Patan                                                                   | 5.40                                                                    | 1.03                                                                    | 6.49                                                                    |
| 27                                                                      | Porbandar                                                               | 0.65                                                                    | 1.17                                                                    | 4.46                                                                    |
| 28                                                                      | Rajkot                                                                  | 15.42                                                                   | 22.65                                                                   | 32.55                                                                   |
| 29                                                                      | Sabarkantha                                                             | 5.75                                                                    | 4.06                                                                    | 9.29                                                                    |
| 30                                                                      | Surat                                                                   | 44.93                                                                   | 70.43                                                                   | 98.67                                                                   |
| 31                                                                      | Surendranagar                                                           | 9.56                                                                    | 40.98                                                                   | 57.63                                                                   |
| 32                                                                      | Tapi                                                                    | 1.00                                                                    | 3.18                                                                    | 3.29                                                                    |
| 33                                                                      | Vadodara                                                                | 58.33                                                                   | 78.63                                                                   | 132.99                                                                  |
| 34                                                                      | Valsad                                                                  | 25.40                                                                   | 34.86                                                                   | 57.46                                                                   |
| Grand Total (in cr.)                                                    | Grand Total (in cr.)                                                    | 984.37                                                                  | 1,461.60                                                                | 1,554.16                                                                |

(Data upto 31.03.2023) [Source: National CSR Data Portal]

*Companies either did not specify the names of district or indicated more than one district where projects were undertaken.

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Annexure-II ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 2789 FOR 07.08.2023

| Development Sector wise summary of CSR Expenditure in Gujarat (Amount in crore)   | Development Sector wise summary of CSR Expenditure in Gujarat (Amount in crore)   | Development Sector wise summary of CSR Expenditure in Gujarat (Amount in crore)   | Development Sector wise summary of CSR Expenditure in Gujarat (Amount in crore)   | Development Sector wise summary of CSR Expenditure in Gujarat (Amount in crore)   |
|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
| Sr. No.                                                                           | Development Sector                                                                | FY 2019-20                                                                        | FY 2020-21                                                                        | FY 2021-22                                                                        |
| 1                                                                                 | Agro forestry                                                                     | 0.37                                                                              | 10.10                                                                             | 5.55                                                                              |
| 2                                                                                 | Animal welfare                                                                    | 20.03                                                                             | 45.24                                                                             | 23.78                                                                             |
| 3                                                                                 | Armed Forces, Veterans, War Widows/ Dependants                                    | 4.50                                                                              | 1.89                                                                              | 0.82                                                                              |
| 4                                                                                 | Art And Culture                                                                   | 9.65                                                                              | 18.94                                                                             | 11.34                                                                             |
| 5                                                                                 | Conservation of natural resources                                                 | 2.99                                                                              | 6.52                                                                              | 15.25                                                                             |
| 6                                                                                 | Education                                                                         | 335.40                                                                            | 421.45                                                                            | 429.65                                                                            |
| 7                                                                                 | Environmental Sustainability                                                      | 37.54                                                                             | 48.64                                                                             | 204.55                                                                            |
| 8                                                                                 | Gender Equality                                                                   | 2.30                                                                              | 1.71                                                                              | 9.91                                                                              |
| 9                                                                                 | Health Care                                                                       | 330.08                                                                            | 597.01                                                                            | 544.39                                                                            |
| 10                                                                                | Livelihood Enhancement Projects                                                   | 28.89                                                                             | 39.11                                                                             | 35.26                                                                             |
| 11                                                                                | NEC/ Not Mentioned*                                                               | -                                                                                 | 0.03                                                                              | -                                                                                 |
| 12                                                                                | Poverty, Eradicating Hunger, Malnutrition                                         | 31.83                                                                             | 78.20                                                                             | 51.55                                                                             |
| 13                                                                                | Rural development projects                                                        | 88.27                                                                             | 85.49                                                                             | 75.49                                                                             |
| 14                                                                                | Safe drinking water                                                               | 11.48                                                                             | 9.00                                                                              | 5.86                                                                              |
| 15                                                                                | Sanitation                                                                        | 16.67                                                                             | 8.09                                                                              | 22.51                                                                             |
| 16                                                                                | Senior citizens welfare                                                           | 2.67                                                                              | 1.67                                                                              | 2.02                                                                              |
| 17                                                                                | Setting up homes and hostels for women                                            | 0.38                                                                              | 0.35                                                                              | 25.79                                                                             |
| 18                                                                                | Setting up orphanage                                                              | 0.15                                                                              | 0.06                                                                              | 1.04                                                                              |
| 19                                                                                | Slum area development                                                             | 0.70                                                                              | 0.46                                                                              | 2.63                                                                              |
| 20                                                                                | Socio-economic inequalities                                                       | 10.53                                                                             | 9.57                                                                              | 5.80                                                                              |
| 21                                                                                | Special education                                                                 | 8.17                                                                              | 6.38                                                                              | 8.91                                                                              |
| 22                                                                                | Technology incubators                                                             | 0.15                                                                              | 1.08                                                                              | 0.36                                                                              |
| 23                                                                                | Training to Promote Sports                                                        | 1.88                                                                              | 3.41                                                                              | 8.10                                                                              |
| 24                                                                                | Vocational skills                                                                 | 25.81                                                                             | 45.01                                                                             | 41.38                                                                             |
| 25                                                                                | Women Empowerment                                                                 | 13.93                                                                             | 22.20                                                                             | 22.22                                                                             |
|                                                                                   | Grand Total (in cr.)                                                              | 984.37                                                                            | 1,461.60                                                                          | 1,554.16                                                                          |

(Data upto 31.03.2023) [Source: National CSR Data Portal]

*Companies either did not specify the names of sector or indicated more than one sector where projects were undertaken.

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