Lok Sabha Question No. 656 (UNSTARRED), answered on 2016-02-26
Subject: Activities by Companies under CSR
Ministry: CORPORATE AFFAIRS
Asked by: SONA RAM CHOUDHARY, GAJENDRA SINGH SHEKHAWAT, KRUPAL BALAJI TUMANE, NISHIKANT  DUBEY, SURESH KODIKUNNIL, ARJUN RAM  MEGHWAL, M. K. RAGHAVAN, VISHNU DAYAL RAM, VINOD KUMAR SONKAR, C.S. PUTTARAJU

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 656 ANSWERED ON FRIDAY THE 26th FEBRUARY, 2016/

PHALGUNA 7, 1937 (SAKA)

## ACTIVITIES BY COMPANIES UNDER CSR

QUESTION

## 656.  COL. SONARAM CHOUDHARY:

SHRI GAJENDRA SINGH SHEKHAWAT:

SHRI KRUPAL BALAJI TUMANE:

SHRI NISHIKANT DUBEY:

SHRI KODIKUNNIL SURESH:

SHRI ARJUN MEGHWAL:

SHRI M.K. RAGHAVAN:

SHRI VISHNU DAYAL RAM:

SHRI VINOD KUMAR SONKAR:

SHRI C.S. PUTTA RAJU:

Will the Minister of CORPORATE AFFAIRS

कारपोरेट कार्य मंत्री

be pleased to state:

- (a)  whether  the  Government  has  notified  Corporate  Social  Responsibility (CSR) policy norms under the Companies Act, 2013, if so, the details and salient features thereof;
- (b) the details of expenditure incurred and work done by the public sector undertakings  (PSUs)  and  private  companies  since  the  inception  of  the Companies Act, 2013, company-wise and state/UT-wise;
- (c) whether any irregularities have come to the notice of Government with regard to execution of CSR, if so, the details thereof along with action taken by the Government against those companies;
- (d) whether the Government has set up any monitoring mechanism to monitor the activities and utilization of funds by the companies under CSR, if so, the details thereof; and

(e)  whether the Government has taken note that the assistance of public representatives is not sought while selecting activities by companies under CSR;  if  so,  the  details  thereof  and  corrective  measures  taken  by  the Government in this regard?

## ANSWER

THE MINISTER OF CORPORATE AFFAIRS कारपोरेट कार्य मंत्री

(SHRI ARUN JAITLEY) ( श्री अरुण जेटली )

(a):  Yes Madam. The provisions of Corporate Social Responsibility (CSR) under  Section  135  of  the  Companies  Act,  2013  and  rules  made thereunder have been notified on 27.02.2014. These notifications are available  on  the  Ministry's  website  (www.mca.gov.in).  The  salient features of CSR provision inter-alia, are as follows:

-  companies above the specified threshold of  turnover or net worth or net profit are required to spend at least two per cent of their average  net  profits  earned  during  three  immediately  preceding financial years on CSR activities;
-  each such company is required to constitute a CSR committee of the Board;
-  the Board of each such company is required to have the company's CSR policy formulated and monitor its implementation;
-  the Board's report shall include an annual  report  on  CSR containing particulars specified in prescribed format;
-  the Board's report shall specify the reasons for not spending the specified amount, if the company fails to spend such amount;
-  companies  may  implement  their  CSR  Policy  through  trusts  or societies or Section 8 companies etc.;
-  indicative activities which can be undertaken by a company under CSR have been specified in Schedule VII of the Act;

Cont….p3/-

(b) : CSR expenditure of 460 listed companies, which have placed their annual  reports  on  their  website,  indicates  that  51  Public  Sector Undertakings (PSUs) and 409 private sector companies together spent about Rs. 6337 crores on CSR during 2014-15 as summarized below:

| Sl. No.   | Company Type             |   No. of companies |   Actual CSR expenditure (in Rs. Crore) (2014-15) |
|-----------|--------------------------|--------------------|---------------------------------------------------|
| 1.        | PSUs                     |                 51 |                                           2386.6  |
| 2.        | Private Sector Companies |                409 |                                           3950.76 |
| Total     | Total                    |                460 |                                           6337.36 |

Of these 460 companies, company-wise CSR expenditure of top 20 companies may be seen at Annexure - I. State /UT-wise number of CSR projects undertaken is at Annexure -II. Information on CSR expenditure on various developmental work by companies is at Annexure- III.

(c) to (e) :  As per Section 135 (3) & (4) of the Companies Act, 2013 Board of  the  company  is  empowered  to  select  programmes  /  projects  / activities to be undertaken and monitor the same. Ministry of Corporate Affairs has no role to play in this regard.

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Annexure - I

## ANNEXURE REFERED TO IN THE REPLY TO LOK SABHA UNSTARRED QUESTION NO. 656

## TOP 20 COMPANIES BY ACTUAL CSR SPEND DURING FY 2014-15 (In Rs. Crore)

| Sl. No.   | NAME OF THE COMPANY                     |   Actual CSR Expenditure |
|-----------|-----------------------------------------|--------------------------|
| 1         | RELIANCE INDUSTRIES LIMITED             |                   760.58 |
| 2         | OIL AND NATURAL GAS CORPORATION LIMITED |                   495.23 |
| 3         | INFOSYS LIMITED                         |                   239.54 |
| 4         | TATA CONSULTANCY SERVICES LIMITED       |                   219    |
| 5         | ITC LIMITED                             |                   214.06 |
| 6         | NTPC LIMITED                            |                   205.18 |
| 7         | NMDC LIMITED                            |                   188.65 |
| 8         | TATA STEEL LIMITED                      |                   171.46 |
| 9         | OIL INDIA LIMITED                       |                   133.31 |
| 10        | WIPRO LIMITED                           |                   132.7  |
| 11        | INDIAN OIL CORPN. LIMITED               |                   113.79 |
| 12        | BHARAT HEAVY ELECTRICALS LIMITED        |                   102.06 |
| 13        | MAHINDRA AND MAHINDRA LIMITED           |                    83.24 |
| 14        | HINDUSTAN UNILEVER LIMITED              |                    82.35 |
| 15        | LARSEN AND TOUBRO LIMITED               |                    76.54 |
| 16        | GAIL (INDIA) LIMITED                    |                    71.69 |
| 17        | CAIRN INDIA LIMITED                     |                    70.36 |
| 18        | NORTHERN COALFIELDS LIMITED             |                    61.77 |
| 19        | MAHANADI COALFIELDS LIMITED             |                    61.3  |
| 20        | HINDUSTAN ZINC LIMITED                  |                    59.28 |
|           | GRAND TOTAL                             |                  3542.09 |

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Annexure - II

## ANNEXURE REFERED TO IN THE REPLY TO LOK SABHA UNSTARRED QUESTION NO. 656 State/UT-wise CSR Projects undertaken during FY 2014-15

| Sl. No.   | States          | No. of Projects   | Sl. No.   | States                    |   No. of Projects |
|-----------|-----------------|-------------------|-----------|---------------------------|-------------------|
| 1         | Maharashtra     | 202               | 19        | Jharkhand                 |                41 |
| 2         | Gujarat         | 111               | 20        | Bihar                     |                38 |
| 3         | Tamil Nadu      | 97                | 21        | Kerela                    |                37 |
| 4         | Karnataka       | 95                | 22        | Himachal Pradesh          |                34 |
| 5         | Rajasthan       | 89                | 23        | Goa                       |                23 |
| 6         | Uttar Pradesh   | 80                | 24        | Manipur                   |                23 |
| 7         | Andhra Pradesh  | 79                | 25        | Arunachal Pradesh         |                22 |
| 8         | West Bengal     | 79                | 26        | Chandigarh                |                21 |
| 9         | Madhya Pradesh  | 71                | 27        | Meghalaya                 |                20 |
| 10        | Delhi           | 66                | 28        | Sikkim                    |                20 |
| 11        | Haryana         | 66                | 29        | Tripura                   |                20 |
| 12        | Orissa          | 54                | 30        | Nagaland                  |                19 |
| 13        | Jammu & Kashmir | 52                | 31        | Pondicherry               |                19 |
| 14        | Chattisgarh     | 48                | 32        | Andaman & Nicobar Islands |                18 |
| 15        | Telangana       | 47                | 33        | Dadar & Nagar Haveli      |                18 |
| 16        | Uttarakhand     | 47                | 34        | Daman & Diu               |                17 |
| 17        | Punjab          | 43                | 35        | Lakshadweep               |                17 |
| 18        | Assam           | 42                | 36        | Mizoram                   |                15 |
|           |                 |                   |           | Total                     |              1790 |

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Annexure - III

## ANNEXURE REFERED TO IN THE REPLY TO LOK SABHA UNSTARRED QUESTION NO. 656

## Development Sector wise CSR expenditure (FY 2014-15)

| Sl. No   | Subjects in Schedule VII                              | CSR Expenditure (in Rs. Crore)   |
|----------|-------------------------------------------------------|----------------------------------|
| 1        | Eradicating Hunger, Poverty & Health Care 1421.66     |                                  |
| 2        | Education/ Vocational skills / livelihood enhancement | 1462.6                           |
| 3        | Women / Old Age / Children 219.27                     |                                  |
| 4        | Environment sustainability                            | 1188.69                          |
| 5        | Art & Culture                                         | 539.83                           |
| 6        | Sports promotion                                      | 454.91                           |
| 7        | PMNRF etc.                                            | 125.32                           |
| 8        | Rural Development                                     | 724.32                           |
| 9        | Slum Development                                      | 114.14                           |
| 10       | Swatch Bharat Kosh                                    | 42.64                            |
| 11       | Clean Ganga Fund                                      | 15.49                            |
| 12       | Others                                                | 28.5                             |
|          | Grand Total                                           | 6337.36                          |

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