Big PSUs CSR Budgets Not Fully Spent


INDIACSR News Network

NEW DELHI: At a time the government is planning to make it mandatory for all companies to set aside 2% of their previous year’s profit for corporate social responsibility (CSR) activity, data released by Govt shows that maharatna and navratna public sector undertakings (PSUs) have not been able to fully spend their CSR budget.

Data released by the ministry of heavy industries & public enterprises show that the five maharatnas – ONGC, Coal India, IOC, NTPC and SAIL – managed to spend just 49% of the combined budget for three years beginning 2009-10. The spending budget for most PSUs is updated till end September 2011.

The combined spending of the navratnas was higher at 65%. But at least five of these 21 PSUs managed to spend less than 25% of the CSR budget of the three years. National Aluminium Ltd, or Nalco, was the only one that managed to fully spend its Rs 31.55 crore budget.

The central PSUs are required to set aside a portion of their profits for spending on CSR activities – about 0.5-2% in case of enterprises with net profit in excess of Rs 500 crore in the previous year and about 3-5% where profits are less than Rs 100 crore.

Coal India spent only 27% of the budget, according to information released. Its CSR budget in 2011-12 was about doubled to Rs 553.33 crore and it managed to spend only Rs 37.26 crore till September 2011. In the first year, it spent 92% of the budget and in the second year, about 58%.

Oil and gas explorer ONGC did better, it spent 49% of the budget in the three years. Like Coal India, its performance in the third year was disappointing. It spent only 6% of the budget till September 2011. Indian Oil Corporation spent 85% of the Rs 264.4 crore it set aside and Sail 72% of the Rs 179.68 crore.

The PSUs are required to fix their CSR budget for each financial year and funds are non-lapsable. The CSR activity is also part of the annual memorandum of understanding (MoU) with the government, where each PSU commits to meet targets for revenues and profits. Normally, CSR activity has to be taken up around area where the PSU has commercial activities. They are however free to choose the activities they would like to take up.

(INDIACSR/Economic Times)

Also read CSR Fund Allocation of Maharatnas and Navratnas

Please follow and like us:



Previous articleAir India losses at Rs 290 crore, Strike Continues for 19th Day
Next articleBanks Must Spend CSR Funds Fully: Pratip Chaudhury, SBI Chairman
India CSR Network
India CSR Network is India's biggest and most trusted news portal in the domain of CSR & Sustainability. India CSR welcomes stories, statements, updates, reports on issues that interest you. Feedback, comments will make it more purposeful and resourceful. It is designed and maintained by India CSR Group. Contents are non-fiction. Though all efforts have been made to verify the accuracy, the same should not be construed as a statement of law or used for any legal purposes. In case of any ambiguity or doubts, readers are advised to verify with the source(s). Statement, articles, views and contributions can be sent to