Coal PSU SECL fails to spend CSR budget

0
760

By Rusen Kumar

NEW DELHI: Bilaspur-based South Eastern Coalfields Limited (SECL), a miniratna PSU, failed to spent even the fifty percent of the budgeted amounts the company has earmarked under the corporate social responsibility (CSR) in the FY 2016-17, the organisation’s annual report stated.

SECL was way behind to meet its target and emerged as non-complaint to spend atleast mandatory 2% of the average net profits towards CSR.

As per report, the total prescribed CSR budget allocated for the FY 2016-17 was Rs 120.24 Crore against which the SECL has spent Rs 42.50 Crore. Unspent CSR amount is Rs 77.74 Crore.

Surprisingly, 12 Meetings of CSR Committee were held during the year 2016-17.

“The fund for CSR, 2% of the average net profit for the three immediate preceding financial years or Rs 2.00 per tonne of coal production of previous year, whichever is higher, comes to Rs. 120.24 Crore (Rs 127.68 Crore). Further, an amount of Rs. 186.35 Crore (Rs. 108.61 Crore) is Non-lapsable.”, report reveled.

“In addition to the expenditure, an amount of Rs 75.86 Crore has also been sanctioned for implementation in FY 2016-17; these works are in progress and the expenditure will be booked in next financial year.”, report said.

“Further, an amount of Rs 327.40 Crore was sanctioned for the work of Establishment of Multi Super Speciality Hospital at Raipur which was earmarked for allocation in phases. However, the matter regarding the modus operandi is under active consideration and finalization with Government of Chhattisgarh and Govt. of India. Hence the balance amount is earmarked for the activity in next financial year.”, report said.

SECL has given Rs 20 Crore to CG Forest Department under Hariyar Chhattisgarh Program for the year FY 2016-17.

“…against which an utilization certificate of only Rs 0.99 Crore has been received from CG State Govt. and as confirmed by them the balance will be utilized in the next financial year.”, report added.

SECL formed Corporate Social Responsibility (CSR) Committee at the 203rd Meeting of the Board of Directors held on 03.02.2012.

“The main function of CSR Committee is to provide the Board with oversight and direction of the Company’s responsibility towards the society at large.”, it added.

“The CSR Committee certify that the implementation and monitoring of the CSR policy in respect of all projects/programs covered under CSR initiatives for the year 2016-17, is in compliance with CSR objectives and CIL CSR Policy framed under the provisions of Companies Act, 2013.”, it said.

Average Net Profit (Profit Before Tax) of the Company for the last three financial years:

Year Profit Before Tax
2013-14 Rs 7202.68 Crore
2014-15 Rs 5659.54 Crore
2015-16 Rs 5173.46 Crore

 Important Facts

  • SECL has contributed Rs 12 Crore towards Swachh Bharat Kosh set up by Govt. of India for promotion of sanitation in rural and urban Areas.
  • SECL has given Rs 20 Crore to CG Forest Department under Hariyar Chhattisgarh Program for the year FY2016-17.
  • Rs 327.40 Crore was sanctioned for the work of Establishment of Multi Super Speciality Hospital at Raipur
  • Independent Director – Sunil Kumar (Retd. IAS, Vice-Chairman of Chhattisgarh State Planning Commission) is the Chairman of CSR Committee
  • SECL is single largest Coal producing Company of India, with 140.00 Million Tonnes of coal production in 2016-17.
  • Coal reserves of SECL are spread over the states of Chhattisgarh and Madhya Pradesh and the Company is operating 79 mines including 49 mines in Chhattisgarh and 30 in Madhya Pradesh).

Terms & Conditions: India CSR Network does not permit other websites/Agency to copy or reproduce or reprint the above report in any form.

Comments

comments