CSR Work by Coal Companies

INDIACSR News Network

NEW DELHI: The Department of Public Enterprises (DPE) had framed the CSR guidelines, based on which, Coal India Ltd. (CIL)   formulated a Corporate Social Responsibility (CSR) policy and provided funds to the tune of 5% of retained earnings of previous year subject to minimum of Rs. 5/- per tons of coal production for subsidiaries & 2.5%  for CIL. The criteria for spending funds under CSR. cover the economically backward and needy section of the society living in different parts of India.  For Carrying out CSR activities, 80% of the budgeted amount should be spent within the radius of 25 km of the projects / mines and 20% of the budget would be spent on CSR activities within the State/States in which the Subsidiary companies are operating. For CIL (HQ) CSR should be broadly executed in the areas, which are beyond the jurisdiction of subsidiary companies. This information was given by the Minister of State for Coal, Shri Pratik PrakashBapu Patil in a written reply in Lok Sabha today.

Shri Patil said that as per CIL’s CSR policy, the nature of work on which CSR funds are being utilized include Education, Water Supply including drinking water, Health care by providing Indoor medical facilities and medicine, Sports and culture, Social Empowerment, Infrastructure for Village Electricity/ Solar Light/ Pawan Chaki. Etc., Generation of employment & setting up Co-operative Society, Infrastructure Support, Heritage  sites  in  the  CSR  purview  ensuring  involvement  of employee’s representatives in this Project, Empowerment of  women for education / health &  self-employment, Adoption of   village   for  carrying  out the   activities  like infrastructural  development  e.g.  road,  water  supply,  electricity and community center etc.

The details of amount utilized during last three years for the development of the surrounding villages by CIL & its subsidiaries is given below.

Company 2010-11 2011-12 2012-13 2013-14

(Up to June)

(Fig in  Rs. Crs.)

ECL 04.74 13.14 09.42 0.35
BCCL 03.15 05.53 07.43 01.73
CCL 10.98 11.00 13.66 02.08
WCL 07.12 07.85 20.96 02.33
SECL 15.70 17.66 46.63 14.71
MCL 53.45 14.47 25.56 17.19
NCL 04.35 09.25 17.64 03.84
CMPDIL 00.19 00.49 01.06 0.00
CIL & NEC 08.71 02.59 07.19 53.13
Total 108.42 82.00 149.55 95.36








Minister further said that the Department of Public Enterprises (DPE) had framed the CSR guidelines in 2010 and as per CSR policy, the budget allocation for CSR increased tremendously. However, the CIL and its subsidiaries were not geared to utilize the funds within the financial year commensurate with higher allocation.

Besides, the CSR projects are to be implemented by specialized agencies. In order to quantify the impact made by CSR activities, baseline data had to be compiled by conducting baseline survey before start of a project. The above formalities took time resulting in slow utilization of funds.

However, the unutilized fund for 2011-12 was carried over to the next financial year. Further, CIL has taken measures to step up utilization of CSR funds in the current year. A separate Cell in CIL, HQ. as well as its subsidiaries has been established under senior level executives of the Company. For monitoring of CSR activities the Committee comprising of Board Level Directors have been formulated at CIL, H.Q and its subsidiaries separately. CIL has entered into a Memorandum of Understanding (MOU) with Tata Institute of Social Science (TISS), A National CSR Hub for extending assistance in implementing CSR activities for CIL and its subsidiaries.



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