How much are CPSEs spending towards CSR?

The Minister
for Heavy Industries and Public Enterprises Praful Patel yesterday
made public the information on funds allocated and utilized towards corporate
social responsibility (CSR) activities of central public sector enterprises (CPSEs).
The minister shared details of all expenses made towards CSR till September
2011.

Under the government’s
CSR guidelines, CPSEs have to, through a board resolution, create mandatorily a
corporate social responsibility budget as a specified percentage of net profit
of the previous year. Expenditure range
for CSR in a financial year is 3-5 per cent of the net profit of previous year
in case of CPSEs having profit less than Rs 100 crore; 2-3 per cent
(subject to a minimum of Rs 3 crore) in case the profit ranges from Rs
100 crore to Rs 500 crore; and 0.5-2 per cent in case of
CPSEs having a net profit of more than Rs 500 crore in the previous
year. 

Loss-making
companies are not mandated to earmark specific funds for CSR activities, but
may achieve this objective by integrating business processes with social
processes, wherever possible. The CSR budget has to be fixed for each
financial year and funds are non-lapsable. Special stress has been laid on
the proper monitoring of the CSR projects undertaken. The boards of the
CPSEs are responsible for the implementation of the CSR activity that forms a
part of the annual memorandum of understanding (MoU) signed between CPSEs and
the government.

Further, as per
the CSR guidelines, the CSR projects/activities may be undertaken as far as
possible in the periphery, where a company carries out its commercial
activities. Where this is not possible, the CPSEs may choose to locate CSR
projects anywhere in the country. CPSEs are also free to choose CSR
activities within the framework of DPE guidelines, with the approval of their boards. 

MAHARATNA

NAVRATNA