Lok Sabha Question No. 945 (UNSTARRED), answered on 2024-07-29
Subject: Measures to Enhance CSR Activities
Ministry: CORPORATE AFFAIRS
Asked by: Shri Manoj Tiwari, Dr. Nishikant Dubey

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 945

ANSWERED ON MONDAY, JULY 29,  2024/ 7 SHRAVAN, 1946 (SAKA)

## MEASURES TO ENHANCE CSR ACTIVITIES

## QUESTION

945 SHRI MANOJ TIWARI: DR. NISHIKANT DUBEY:

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 and if not, the reasons therefor along with the details of the CSR work undertaken in Delhi 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 and 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 IN THE MINISTRY OF CORPORATE AFFAIRS   AND MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS [SHRI HARSH MALHOTRA]

- (a) & (b): The legal 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 undertaken in Delhi 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  eco-system  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 that 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.

******

## ANNEXURE-I

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

## 945 FOR 29.07. 2024

| District-wise summary of CSR Expenditure in Delhi (Amount in crore)   | District-wise summary of CSR Expenditure in Delhi (Amount in crore)   | District-wise summary of CSR Expenditure in Delhi (Amount in crore)   |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|
| S.No.                                                                 | Name of Districts                                                     | FY 2022-23                                                            |
| 1.                                                                    | Central Delhi                                                         | 233.86                                                                |
| 2.                                                                    | East Delhi                                                            | 56.58                                                                 |
| 3. New Delhi                                                          | 794.41                                                                |                                                                       |
| 4. North Delhi                                                        | 42.62                                                                 |                                                                       |
| 5.                                                                    | North East Delhi                                                      | 15.06                                                                 |
| 6. North West                                                         | Delhi                                                                 | 42.39                                                                 |
| 7. South Delhi                                                        |                                                                       | 128.39                                                                |
| 8. South                                                              | East Delhi                                                            | 0.17                                                                  |
| 9.                                                                    | South West Delhi                                                      | 43.88                                                                 |
| 10. West                                                              | Delhi                                                                 | 36.40                                                                 |
| 11.                                                                   | PAN India                                                             | 2.70                                                                  |
| 12. NEC/Not                                                           | Mentioned *                                                           | 87.46                                                                 |
| Grand Total                                                           | Grand Total                                                           | 1,483.91                                                              |

Data upto 31.03.2024) [Source: Corporate Data Management Cell] *Companies either did not specify the names of District or indicated more than one District where projects were undertaken.

*****

## ANNEXURE-II

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 945 FOR 29.07. 2024

| Development Sector-wise summary of CSR Expenditure in Delhi (Amount in crore)   | Development Sector-wise summary of CSR Expenditure in Delhi (Amount in crore)   | Development Sector-wise summary of CSR Expenditure in Delhi (Amount in crore)   |
|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| S.No.                                                                           | Development Sector                                                              | CSR Expenditure FY 2022-23                                                      |
| 1.                                                                              | Agro forestry                                                                   | 1.41                                                                            |
| 2.                                                                              | Animal welfare                                                                  | 22.96                                                                           |
| 3.                                                                              | Armed Forces, Veterans, War Widows/ Dependants                                  | 42.18                                                                           |
| 4.                                                                              | Art And Culture                                                                 | 46.70                                                                           |
| 5.                                                                              | Conservation of natural resources                                               | 4.46                                                                            |
| 6.                                                                              | Education                                                                       | 388.16                                                                          |
| 7.                                                                              | Environmental Sustainability                                                    | 88.06                                                                           |
| 8.                                                                              | Gender Equality                                                                 | 14.87                                                                           |
| 9.                                                                              | Health Care                                                                     | 459.47                                                                          |
| 10.                                                                             | Livelihood Enhancement Projects                                                 | 126.82                                                                          |
| 11.                                                                             | Poverty, Eradicating Hunger, Malnutrition                                       | 88.58                                                                           |
| 12.                                                                             | Rural development projects                                                      | 15.60                                                                           |
| 13.                                                                             | Safe drinking water                                                             | 1.17                                                                            |
| 14.                                                                             | Sanitation                                                                      | 5.48                                                                            |
| 15.                                                                             | Senior citizens welfare                                                         | 6.73                                                                            |
| 16.                                                                             | Setting up homes and hostels for women                                          | 1.42                                                                            |
| 17.                                                                             | Setting up orphanage                                                            | 1.46                                                                            |
| 18.                                                                             | Slum area development                                                           | 0.60                                                                            |
| 19.                                                                             | Socio-economic inequalities                                                     | 21.07                                                                           |
| 20.                                                                             | Special education                                                               | 17.76                                                                           |
| 21.                                                                             | Technology incubators                                                           | -                                                                               |
| 22.                                                                             | Training To Promote Sports                                                      | 41.57                                                                           |
| 23.                                                                             | Vocational skills                                                               | 43.38                                                                           |
| 24.                                                                             | Women Empowerment                                                               | 22.75                                                                           |
| 25.                                                                             | Other Central Government Funds                                                  | 21.25                                                                           |
| Grand Total                                                                     | Grand Total                                                                     | 1,483.91                                                                        |

(Data upto 31.03.2024) [Source: Corporate Data Management Cell] *****