Lok Sabha Question No. 2291 (UNSTARRED), answered on 2016-07-29
Subject: Corporate Social Responsibility
Ministry: CORPORATE AFFAIRS
Asked by: VINOD KUMAR SONKAR, DEVJI MANSINGRAM PATEL, M. K. RAGHAVAN, SURESH KODIKUNNIL, SUNIL KUMAR SINGH, PARASURAMAN K., HEMANT TUKARAM GODSE, HARIOM SINGH RATHORE, RAMESH POKHRIYAL NISHANK

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## ANSWERED ON FRIDAY THE 29th JULY, 2016 /

## LOK SABHA UNSTARRED QUESTION NO. 2291 SHRAVANA 7, 1938 (SAKA)

## CORPORATE SOCIAL RESPONSIBILITY

## QUESTION

## 2291. SHRI VINOD KUMAR SONKAR:

SHRI DEVJI M. PATEL:

SHRI M.K. RAGHAVAN:

SHRI KODIKUNNIL SURESH:

SHRI SUNIL KUMAR SINGH:

SHRI K. PARASURAMAN:

SHRI GODSE HEMANT TUKARAM:

SHRI HARIOM SINGH RATHORE:

DR. RAMESH POKHRIYAL "NISHANK":

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a) the details of expenditure incurred and work done by various Public Sector Undertakings (PSUs)/private sector companies during the last three years under Corporate Social Responsibility (CSR), PSU and company-wise;
- (b)  whether  the  Government  has  laid  down  any  specific  norms  regarding  the utilisation of funds under the CSR particularly in backward and SCs/STs dominated areas, if so, the details thereof;
- (c) whether the Government has issued directions for those companies which are not spending funds under CSR, if so, the details thereof;
- (d) whether the complaints of gross irregularities in awarding of contracts and execution of the projects/works under CSR have been received, if so, the details thereof along with the action taken by the Government thereon; and
- (e) the further steps taken/mechanism set up by the Government to ensure the proper implementation of CSR projects/ works judiciously and with transparency?

## ANSWER

THE MINISTER OF STATE IN THE

MINISTRY OF CORPORATE AFFAIRS                        (SHRI ARJUN RAM MEGHWAL)

कारपोरेट कार्य मंत्रालर् में राज्य मंत्री

(

श्री अर्जुन राम मेघवाल )

(a):  The  year  2014-15  was the first year of implementation of Corporate Social Responsibility (CSR) by companies under Companies Act, 2013. An assessment of Contd...p2/-

CSR expenditure of 4257 companies for the year 2014-15 indicates that 116 Public Sector  Undertakings  (PSUs)  and  1790  Private  Sector  companies  together  have spent Rs 8029 crores during 2014-15 as summarised below:

CSR Expenditure during 2014-15 (in Rs. Crore)

| Sr. No.   | Company Type             |   Total companies |   No. of Companies with CSR expenditure |   No. of Companies with no CSR expenditure |   Actual CSR expenditure (in Rs. Crore) (2014-15) |
|-----------|--------------------------|-------------------|-----------------------------------------|--------------------------------------------|---------------------------------------------------|
| 1.        | PSUs                     |               169 |                                     116 |                                         53 |                                              2364 |
| 2.        | Private Sector Companies |              4088 |                                    1790 |                                       2298 |                                              5665 |
|           | Total                    |              4257 |                                    1906 |                                       2351 |                                              8029 |

Information relating to CSR expenditure on various developmental work for the year 2014-15 by companies is at Annexure.

- (b) : Schedule VII of the Act, enlists the activities that can be undertaken by the companies under their CSR policies. Item No. (viii) of Schedule VII covers 'relief and  welfare  of  the  Scheduled  Castes,  the  Scheduled  Tribes,  other  backward classes, minorities and women' as eligible CSR activities.
- (c) : Under Section 135 (5) of the Act, the Board of the CSR eligible company shall ensure that the company spends, in every financial year, at least two per cent of the  average  net  profits  of  the  company  made  during  the  three  immediately preceding  financial  years,  in  pursuance  of  its  Corporate  Social  Responsibility Policy, provided that if the company fails to spend such amount, the Board shall, in its report made under clause (o) of sub-section (3) of section 134, specify the reasons for not spending the amount.
- (d) : Selection of programmes/ projects/ activities to be undertaken under CSR, and procedures to be adopted for awarding contracts to implementing agencies etc., are  decided  by  the  Board  of  the  company  as  per  Section  135(3)  &  (4)  of  the Companies Act, 2013, and rules made thereunder.
- (e) : The Ministry has issued Clarificatory Circular and FAQs on 18/06/2014 and 12/01/2016 respectively for facilitating effective implementation of CSR programmes / projects by companies under the legislation.

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## Annexure

## ANNEXURE REFERRED TO IN THE REPLY TO LOK SABHA UNSTARRED QUESTION NO. 2291 Development Sector wise CSR expenditure (FY 2014-15)

| Subject in Schedule VII                                                     |   CSR Expenditure (In Rs. Crores) |
|-----------------------------------------------------------------------------|-----------------------------------|
| Health / Eradicating Hunger, Poverty & Malnutrition                         |                           2031.67 |
| Education/ Differently Abled/ Livelihood                                    |                           2519.92 |
| Gender Equality / Women Empowerment / Old Age homes / Reducing Inequalities |                            286.81 |
| Environment & Animal Welfare                                                |                           1205.75 |
| Heritage Art & Culture                                                      |                            148.09 |
| Encouraging Sports                                                          |                            150.07 |
| PM National Relief Fund                                                     |                            132.08 |
| Rural Development                                                           |                            920.38 |
| Slum Development                                                            |                            121.3  |
| Swatch Bharat Kosh                                                          |                            115.83 |
| Clean Ganga Fund                                                            |                             17.16 |
| Others                                                                      |                            379.94 |
| Total                                                                       |                           8029    |

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