Lok Sabha Question No. 483 (UNSTARRED), answered on 2015-07-23
Subject: Allotment of Funds under CSR
Ministry: COAL
Asked by: SUSHIL KUMAR SINGH, R.K. BHARATHI MOHAN, RITI PATHAK

GOVERNMENT OF INDIA

MINiSTRY OF COAL

## 1 LOK  SABHA

unSTARRED QUESTION NO.483

TO BE ANSWERED ON 23.7.2015

**Allotment of Funds under CSR**

483. 	SHRI SUNIL KUMAR SINGH:

SHRI BHARATHI MOHAN R.K.:

SHRIMATI RITI PATHAK:

Will the Minister of COAL be pleased to state :

(a) 	the guidelines for allotment of funds by Neyveli Lignite Corporation (NLC) Limited and Coal India Limited (CIL) under Corporate Social Responsibility;

(b) 	the funds allotted by CIL and its subsidiary companies and NLC Limited for Corporate Social Responsibility (CSR) activities during each of the last three years and the current year along with the development works done, company-wise; and

(c) 	the details of funds not utilized/lying unutilized under CSR during 2013-14 and 2014-15 along with the reasons therefor and the action taken by the Government in this regard?

**ANSWER**

**MINISTER OF STATE (IC) IN THE MINISTRY OF COAL, POWER   AND NEW & RENEWABLE ENERGY**

**(SHRI PIYUSH GOYAL)**

1. As per modified CSR policy based on New Companies Act 2013, CSR budget of CIL is allocated based on 2% of the average net profit of the Company made during three immediate preceding financial years or Rs. 2.00 per tonnes of coal production of previous year whichever is higher. In respect of NLC, it is at least two per cent of the average net profits of the company made during the three immediately preceding financial years.

1. The funds allocated by CIL and its subsidiaries under CSR activities  and the development works done during last three years and current years is given at annexure-I and that of NLC at annexure-II.

1. The details of funds not utilised/lying unutilised under CSR during
2013-14 and 2014-15 along with the reasons therefor and the action taken by
the Government in this regard in respect CIL and NLC are given at annexure-III and IV respectively.

**Annexure-I**

**The fund allocated by CIL and its subsidiaries under CSR activities during last three years and the current year are as under:-**

| Company                                                   |  CSR Funds utilized (Rs. in crs.)   |  CSR Funds utilized (Rs. in crs.)   |  CSR Funds utilized (Rs. in crs.)   |  CSR Funds utilized (Rs. in crs.)   |
|-----------------------------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|
| Company                                                   | **2012-13**                         | **2013-14**                         | **2014-15**                         | **2015-16**                         |
| Eastern Coalfields Limited (ECL)                          | 23.89                               | 29.35                               | 37.90                               | 46.22                               |
| Bharat Coking Coal Limited (BCCL)                         | 23.63                               | 30.50                               | 30.00                               |                                     |
| Central Coalfields Limited (CCL)                          | 47.72                               | 26.42                               | 48.00                               | 52.99                               |
| Western Coalfields Limited (WCL)                          | 40.67                               | 29.46                               | 7.95                                |                                     |
| South Eastern Coalfields Limited (SECL)                   | 181.79                              | 63.94                               | 129.00                              | 217.22                              |
| Mahanadi Coalfields Limited (MCL)                         | 73.36                               | 101.72                              | 112.48                              |                                     |
| Northern Coalfields Limited (NCL)                         | 95.73                               | 48.99                               | 80.28                               | 76.60                               |
| Central Mine Planning & Design Institute Limited (CMPDIL) | 1.63                                | 1.82                                | 2.00                                | 2.00                                |
| Coal India Limited (CIL)                                  | 107.32                              | 142.16                              | 24.04                               | 19.69  (Prov.)                      |

**The development works done during last three years and current year are as under:**

| **Eastern Coalfields Limited (ECL) 				Rs. in lakhs**   |                          |                      |                                       |                                        |            |                                |            |                              |                |
|---------------------------------------------------------|--------------------------|----------------------|---------------------------------------|----------------------------------------|------------|--------------------------------|------------|------------------------------|----------------|
| **Year**                                                | **Infras**  **tructure** | **Edu-**  **cation** | **Water &**  **Sani**  **tation** | **Skill**  **Deve**  **lop**  **ment** | **Health** | **Forestry & Environment** | **Sports** | **Women Em-power**  **ment** | **Others**     |
| 2012-13                                                 | 218.47                   | 277.88               | 379.29                                | 12.85                                  | 30.94      | 0.00                           | 10.93      | 3.38                         | 8.83           |
| 2013-14                                                 | 870.12                   | 1.00                 | 308.36                                | 21.73                                  | 19.24      | 0.00                           | 5.76       | 8.25                         | 20.05          |
| 2014-15                                                 | 2007.11                  | 0.16                 | 339.41                                | 30.26                                  | 86.72      | 0.00                           | 0.50       | 0.00                         | 21.52          |
| 2015-16*                                                | 1423.91                  |                      | 34.52                                 |                                        | 15.13      |                                |            |                              |                |
| **Bharat Coking Coal Limited (BCCL)**                   |                          |                      |                                       |                                        |            |                                |            |                              |                |
| 2012-13                                                 | 146.00                   | 87.00                | 418.00                                | 5.00                                   | 134.00     | 0.00                           | 0.00       | 0.00                         | 0.04           |
| 2013-14                                                 | 88.00                    | 20.00                | 278.00                                | 82.00                                  | 49.00      | 0.00                           | 0.00       | 0.00                         | 263.00         |
| 2014-15                                                 | 236.10                   | 34.36                | 6.32                                  | 5.43                                   | 60.00      | 10.32                          | 0.00       | 0.00                         | 1106.41        |
| 2015-16*                                                | 0.00                     | 0.00                 | 0.00                                  | 0.00                                   | 0.00       | 0.00                           | 0.00       | 0.00                         | 0.00           |
| **Central Coalfields Limited (CCL)**                    |                          |                      |                                       |                                        |            |                                |            |                              |                |
| 2012-13                                                 | 794.00                   | 220.52               | 185.61                                | 0.58                                   | 18.24      | 22.57                          | 0.22       | 0.00                         | 124.41         |
| 2013-14                                                 | 1140.01                  | 365.86               | 821.78                                | 43.15                                  | 24.03      | 179.76                         | 45.81      | 0.00                         | 73.74          |
| 2014-15                                                 | 642.36                   | 219.63               | 639.27                                | 27.78                                  | 39.73      | 246.43                         | 37.46      | 0.000                        | 50.99          |
| 2015-16*                                                |                          |                      |                                       |                                        |            |                                |            |                              |                |
| **Western Coalfields Limited (WCL)**                    |                          |                      |                                       |                                        |            |                                |            |                              |                |
| 2012-13                                                 | 1512.03                  | 120.58               | 121.37                                | 01.01                                  | 240.43     | 1.65                           | 12.24      | 0.00                         | 86.26          |
| 2013-14                                                 | 1703.01                  | 158.92               | 171.04                                | 8.63                                   | 111.18     | 56.08                          | 21.31      | 0.00                         | 149.40         |
| 2014-15                                                 | 1523.58                  | 94.51                | 110.39                                | 8.72                                   | 40.05      | 144.85                         | 4.02       | 9.39                         | 79.32  (Prov.) |
| 2015-16*                                                |                          |                      |                                       |                                        |            |                                |            |                              |                |
| **Northern Coalfields Limited (NCL)**                   |                          |                      |                                       |                                        |            |                                |            |                              |                |
| 2012-13                                                 | 635.25                   | 914.20               | 80.00                                 | 21.30                                  | 49.30      | 0.00                           | 5.65       | 0.00                         | 58.30          |
| 2013-14                                                 | 1731.42                  | 11.45                | 135.62                                | 45.74                                  | 24.35      | 0.00                           | 22.42      | 0.00                         | 2000.00        |
| 2014-15                                                 | 4106.67                  | 1528.88              | 349.20                                | 128.90                                 | 47.67      | 0.00                           | 15.28      | 0.00                         | 0.00           |
| 2015-16*                                                |                          |                      |                                       |                                        |            |                                |            |                              |                |

| **South Eastern Coalfields Limited (SECL)**                       |         |         |         |        |         |        |         |       |         |
|-------------------------------------------------------------------|---------|---------|---------|--------|---------|--------|---------|-------|---------|
| 2012-13                                                           | 2442.44 | 1011.93 | 894.73  | 18.60  | 188.77  | 0.00   | 0.00    | 0.00  | 106.33  |
| 2013-14                                                           | 3180.02 | 798.87  | 0.00    | 127.43 | 208.63  | 59.53  | 3.59    | 0.00  | 13.50   |
| 2014-15                                                           | 2758.74 | 230.20  | 125.53  | 43.36  | 168.67  | 40.97  | 14.00   | 0.00  | 661.53  |
| 2015-16*                                                          |         |         |         |        |         |        |         |       | #142.57 |
| **Central Mine Planning & Design Institute Limited (CMPDIL)** |         |         |         |        |         |        |         |       |         |
| 2012-13                                                           | 43.77   | 49.50   | 6.65    | 0.00   | 4.96    | 0.00   | 0.00    | 0.00  | 1.04    |
| 2013-14                                                           | 119.70  | 33.39   | 6.18    | 1.80   | 0.00    | 0.00   | 0.53    | 33.22 | 8.23    |
| 2014-15                                                           | 71.45   | 29.56   | 2.38    | 1.80   | 51.70   | 0.00   | 0.25    | 11.36 | 31.50   |
| 2015-16*                                                          |         |         |         |        |         |        |         |       |         |
| **Mahanadi Coalfields Limited (MCL)**                             |         |         |         |        |         |        |         |       |         |
| 2012-13                                                           | 1509.91 | 160.89  | 521.81  | 0.23   | 250.18  | 60.24  | 3.68    | 0.00  | 50.63   |
| 2013-14                                                           | 7329.99 | 216.63  | 1479.64 | 0.38   | 517.32  | 106.48 | 605.00  | 0.00  | 892.57  |
| 2014-15                                                           | 40.15   | 2.70    | 8.62    | 0.00   | 0.00    | 0.36   | 7.34    | 0.00  | 1.47    |
| 2015-16*                                                          | 1.57    | 0.13    | 28.77   | 0.00   | 0.00    | 2.67   | 0.00    | 0.00  | 0.00    |
| **Coal India Limited**                                            |         |         |         |        |         |        |         |       |         |
| 2012-13                                                           | 176.02  | 259.81  | 39.20   | 181.37 | 70.73   | 32.84  | 0.00    | 0.00  | 4.00    |
| 2013-14                                                           | 452.46  | 99.07   | 90.60   | 0.00   | 219.25  | 0.00   | 10000.0 | 90.00 | 2.23    |
| 2014-15                                                           | 379.08  | 14.98   | 51.15   | 23.10  | 1847.16 | 0.00   | 0.00    | 87.83 | 0.44    |
| 2015-16*                                                          |         |         |         |        |         |        |         |       | 0.54    |

*** 	Up to June-2015**

**# 	The figure is for consolidated expenditure against various heads.**

**Annexure-II**

**The details of funds allocated by NLC for CSR For the years 2012-13 and 2013-14, are as under:-**

(Rs. in Cr.)

| **Major Activity-wise Break up details - (Rs. in Cr.)**   |                                                                                                           |                     |                       |
|-----------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|---------------------|-----------------------|
| **Sl.**                                                   | **Particulars of Activity**                                                                               | **2012-13**         | **2013-14**           |
|                                                           | Profit After Tax (PAT) earned by NLC in the previous year.                                                | 1411.33             | 1459.75               |
|                                                           | Minimum Budget to be allocated by NLC as per DPE Guidelines                                               | 7.05  (0.5% of PAT) | 14.60  (1.0 % of PAT) |
|                                                           | **Actual Spending for various major developments activities**                                             |                     |                       |
| **A**                                                     | Access and Social Infrastructure Development in surrounding villages                                      | 3.72                | 4.24                  |
| **B**                                                     | Water and irrigation                                                                                      | 1.33                | 1.59                  |
| **C**                                                     | Education                                                                                                 | 2.10                | 3.38                  |
| **D**                                                     | Health, sanitation and combating diseases                                                                 | 4.92                | 5.96                  |
| **E**                                                     | Capacity Building, Women empowerment/ skill development/ Entrepreneurship / employability                 | 1.56                | 6.44                  |
| **F**                                                     | Baseline Survey/Impact Assessment  Study/Research                                                         | 0.28                | 0.05                  |
| **G**                                                     | Others like environment Awareness, sports and culture, Corporate Communication expenses and Miscellaneous | 0.35                | 0.24                  |
| **H**                                                     | Disaster Management/ Relief Works                                                                         | --                  | 2.78                  |
| **I**                                                     | Sustainable Development                                                                                   | Separate Budget     | 1.62                  |
|                                                           | **Total Expenditure**                                                                                     | **14.26**           | **26.30**             |
|                                                           | Actual Expenditure as % of PAT                                                                            | 1.01%               | 1.80%                 |

**The details of funds allocated by NLC for CSR for the  year 2014-15 and the actual spent for**

**Various major developmental activities is given below:**

**(Rs. in Cr.)**

| **Particulars**                                                                                                                                                                           | **2014-15**   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
| Average net profits of the company made during the three immediately receding financial years, calculated in accordance with the provisions of section 198(1983.89+ 2047.65 + 2209.13 )/3 | 2080.22       |
| Minimum Budget to be allocated by NLC as per Section 135 of the Companies Act, 2013                                                                                                       | 41.60         |
| Budget allocation made by NLC for the year                                                                                                                                                | 41.60         |
| **Actual Expenditure for 2014-15 for  Major Activities  covered in Schedule VII of the Companies Act, 2013 for various developmental works**                                              |               |
| Health Care, Family Welfare and Sanitation                                                                                                                                                | 6.73          |
| Providing Drinking Water Supply Facilities                                                                                                                                                | 0.90          |
| Providing Education including Special Education, Scholarships, Construction of  educational infrastructure like Schools/ Libraries / Laboratories                                         | 11.23         |
| Skill Development                                                                                                                                                                         | 0.19          |
| Women Empowerment / Gender Equality                                                                                                                                                       | 0.09          |
| Animal Welfare                                                                                                                                                                            | 0.04          |
| Heritage, Arts, Culture and Sports                                                                                                                                                        | 0.26          |
| Relief / Rehabilitation of areas Affected by Disasters                                                                                                                                    | 4.05          |
| Research / Technology Incubation Projects                                                                                                                                                 | 1.01          |
| Water Resource Augmentation, Irrigation and Flood Control Works for Rural Development                                                                                                     | 10.97         |
| Providing Link Roads/ Access for Rural Development                                                                                                                                        | 11.78         |
| Other Community Assets for Rural Development                                                                                                                                              | 0.24          |
| **Total**                                                                                                                                                                                 | **47.49**     |
| Expenditure as % of Average net profits of the company made during the three immediately receding financial years, calculated in accordance with the provisions of section 198.           | 2.28%         |

**For the Current year 2015-16, NLC has allocated CSR funds as per Section 135 of the Companies Act, 2013 and DPE guidelines, for activities covered in Schedule  VII  of the act. The details are given below:**

**(Rs. in Cr.)**

| **Particulars**                                                                                                                                                                            | **2015-16**                             |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|
| Average net profits of the company made during the three immediately receding financial years, calculated in accordance with the provisions of section 198  ( 2047.65 + 2209.13+2383.33)/3 | 2213.37                                 |
| Minimum Budget to be allocated by NLC as per Section 135 of the Companies Act, 2013                                                                                                        | 44.27                                   |
| Budget allocation made by NLC for the year                                                                                                                                                 | 46.60                                   |
| Total expenditure                                                                                                                                                                          | Full utilization of the Budget Planned. |
| Expenditure as % of Average net profits of the company made during the three immediately receding financial years, calculated in accordance with the provisions of section 198.            | Full utilization of the Budget Planned. |

**Annexure-III**

**The details of funds not utilised/lying unutilised under CSR during 2013-14 and 2014-15 along with the reasons therefor and the action taken by the Government in this regard in respect of CIL:-**

(Rs. in Crs.)

| Company   | Budget unutilized   | Budget unutilized   | Reasons                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----------|---------------------|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Company   | 2013-14             | 2014-15             | Reasons                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| ECL       | 7.38                | 13.04               | Non- utilization of 100% fund during 2013-14 was initially due to revised guidelines by DPE, as procedural aspects and understanding with all the stakeholders took considerable time. Further maximum of the activities were of infrastructural development for which selection of agencies with reasonable rate through tendering took considerable time. During 2014-15 due to introduction of Swachh Vidyalaya Abhiyan, budget and resources were diverted for timely execution and completion of construction of toilets. Due to code of conduct for legislative elections in Jharkhand the process got delayed.                    |
| BCCL      | 2.70                | 16.41               | During 2014, survey could not be done for around 4 months i.e. during mid March to mid May and from end October to end December owing to Legislative Assembly Election. Tendering process was also delayed due to non participation of bidders in few cases.                                                                                                                                                                                                                                                                                                                                                                             |
| CCL       | -                   | -                   | During the year 2013-14 & 2014-15, 100% fund allotted has been spent on CSR Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| WCL       | 5.66                | -                   | Large number of small CSR activities are scattered over an extended geographical area resulting poor participation of tenders.. Delay in issue of "NOC" from Panchayts, Dist. Admn., Local bodies etc. During 2014-15 entire fund of CSR budget has been utilized.                                                                                                                                                                                                                                                                                                                                                                       |
| NCL       | 9.27                | 18.51               | The un spent amount was owing to the delay in finalization of tenders for construction works. Further during 2014-15 around 40% of the fund has been diverted to Hindustan Prefab Ltd. for construction of toilets and the Utilization Certificate (UC) in respect of the said fund has not yet submitted and the same has been treated as advance.                                                                                                                                                                                                                                                                                      |
| SECL      | 20.03               | 89.54               | There are commitments against the funds unutilized under CSR during 2013-14 and 2014-15. The company is strictly adhered to new CIL CSR Policy for ensuring the efficient utilization of CSR funds.                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| MCL       | -                   | 51.18               | During 2013-14 full CSR fund has been utilized. Further during 2014-15 tenders were floated for construction toilets but due to non participation of bidders, re-tendering was processed. As such, the budget allocated for Swachh Vidyalay Abhiyan could not be utilized during the financial year which resulted in unspent CSR budget. Moreover, some of the major Road works under Sundergarh Dist.  amounting Rs. 43.40 crores which was previously considered as rural development projects were removed by CAG Audit, stating that the same does not qualify as CSR activities. Hence the CSR expenditure was not utilized fully. |
| CMPDIL    | -                   | 0.19                | During 2013-14 full CSR budget has been utilized. During 2014-15 the unutilization was due to local land problems.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| CIL       | 111.93              | -                   | During 2013-14 an amount  of approximately Rs. 30.00 crores has been diverted to ECL & BCCL for CSR activities. During 2014-15 full fund has been utilized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

**Annexure-IV**

**The details of funds not utilized / lying unutilized under CSR during 2013-14 and 2014-15 in respect of NLC**

For the year 2013-14 NLC spent Rs.26.30 Cr. (1.80% of PAT against the minimum required norm of 1% of PAT) . For the year 2014-15 NLC spent Rs 47.49 Cr ( 2.28 % of Average net profits of the company made during the three immediately preceding financial years, calculated in accordance with the provisions of section 198 against the minimum required norm of 2%) . In both the years there were no unutilized CSR funds.