NEW DELHI (India CSR): For millions of Indians who traverse the nation’s vast railway network, the Indian Railway Finance Corporation Limited (IRFC) is the silent force fueling connectivity and progress. Beyond its role in financing tracks and trains, IRFC carries a profound responsibility to uplift communities through its Corporate Social Responsibility (CSR) initiatives. In FY 2024-25, IRFC committed Rs 125.58 crore to transform lives through health, education, and empowerment programs. Yet, its latest CSR report reveals a striking reality: Rs 124.47 crore of this commitment remained unspent by March 31, 2025, transferred to a designated account for future disbursement. This unspent sum represents not a lapse, but a promise deferred—funds poised to bring healthcare to remote villages, education to underserved youth, and dignity to marginalized communities. As IRFC celebrates its Navratna status, granted in March 2025, this report delves into the complexities of its CSR journey, where intent meets execution.
Key Facts Table: IRFC CSR Unspent Report FY 2025
| Aspect | Details |
|---|---|
| Total CSR Obligation (FY 2024-25) | Rs 125.58 Crore |
| Actual CSR Spent | Rs 1.11 Crore (Rs 1,10,80,438) |
| Unspent CSR Amount | Rs 124.47 Crore (Transferred to Unspent CSR Account on April 30, 2025) |
| Total Projects Approved | 52 Projects |
| Primary Focus Area (DPE Mandate) | Health & Nutrition |
| Allocation to Health & Nutrition | 61.10% (Rs 82.08 Crore approx.) |
| Allocation to Education & Skill Development | Rs 30.50 Crore |
| Allocation to Armed Forces Veterans & Dependents | Rs 13.00 Crore |
| Allocation to Sports Training | Rs 8.18 Crore |
| Allocation to Women Empowerment & Social Welfare | Rs 2.00 Crore |
| CSR in Aspirational Districts | Rs 3.57 Crore |
| Revenue from Operations (FY 2024-25) | Rs 27,152.14 Crore |
| Profit After Tax (FY 2024-25) | Rs 6,502.00 Crore |
| Net Worth (as of March 31, 2025) | Rs 52,667.77 Crore |
| Future CSR Obligation (FY 2025-26) | Approx. Rs 128 Crore |
Statutory CSR Commitment
Under Section 135 of the Companies Act, 2013, IRFC is mandated to allocate two percent of its average net profits from the preceding three financial years to CSR activities. For FY 2024-25, this obligation amounted to Rs 125.58 crore, reflecting IRFC’s robust financial performance, with a record-breaking revenue of Rs 27,152.14 crore and a Profit After Tax (PAT) of Rs 6,502.00 crore, up 1.40% year-on-year.
IRFC’s Board approved 52 projects to meet this mandate, committing the full Rs 125.58 crore to initiatives aligned with national priorities. This commitment underscores IRFC’s ethos of balancing its role as a financial powerhouse with its duty to foster social equity, ensuring that its prosperity benefits the nation’s most vulnerable.
The Unspent Rs 124.47 Crore: A Closer Look
Despite its ambitious allocation, IRFC’s actual CSR expenditure in FY 2024-25 was Rs 1,10,80,438 (approximately Rs 1.11 crore), leaving Rs 124,47,19,562 (Rs 124.47 crore) unspent. This significant gap is not a sign of inaction but a reflection of the phased nature of large-scale CSR projects. Per Section 135(6) of the Companies Act, 2013, the unspent Rs 124.47 crore was transferred to a ‘CSR Unspent Account’ with a Scheduled Bank on April 30, 2025. These funds are earmarked for ongoing projects, to be disbursed as implementing agencies submit bills or claims, ensuring compliance and accountability.
This mechanism, standard for Central Public Sector Enterprises (CPSEs) like IRFC, safeguards the funds for their intended purpose, with a three-year window for expenditure. The unspent amount highlights the logistical challenges of coordinating multi-year projects while maintaining strict adherence to statutory guidelines.
Thematic Focus and Project Allocation
IRFC’s CSR strategy for FY 2024-25 was shaped by the Department of Public Enterprises (DPE), which designated Health and Nutrition as the primary focus. Accordingly, 61.10% of the planned expenditure—approximately Rs 76.73 crore—was allocated to health-related initiatives. The remaining funds supported diverse areas, including:
- Promoting Education and Skill Development: Rs 30.50 crore for initiatives like a skill park in Patna, Bihar (Rs 10.00 crore) and 50 public libraries in Nagarkurnool, Telangana (Rs 1.00 crore).
- Armed Forces Veterans and Dependents: Rs 13.00 crore for welfare measures supporting veterans and war widows.
- Sports Training: Rs 8.18 crore to promote sports among youth.
- Social Welfare and Women Empowerment: Rs 2.00 crore for gender equality and community upliftment projects.
The 52 approved projects included impactful initiatives like funding r-TMS equipment for AIIMS Rajkot (Rs 1.00 crore), supporting 500 cleft surgeries in Odisha, Jharkhand, and West Bengal (Rs 1.37 crore), and establishing health clinics under the Jan Arogyam program in Uttar Pradesh (Rs 99.89 lakh). Notably, Rs 3.57 crore was spent in aspirational districts across Uttar Pradesh, Bihar, and Assam, prioritizing marginalized communities.
Financial Strength Underpinning Social Goals
IRFC’s ability to commit substantial CSR funds is rooted in its financial resilience. In FY 2024-25, the company achieved a Net Worth of Rs 52,667.77 crore and maintained a nil Non-Performing Asset (NPA) status, reinforcing its stability. Its Navratna status, conferred in March 2025, grants greater autonomy, enabling IRFC to expand beyond traditional railway financing. The company disbursed Rs 731.27 crore to non-Ministry of Railways entities, including Rs 700 crore to NTPC Renewable Energy Limited for green energy projects, aligning with India’s 500 GW clean energy target by 2030. IRFC also committed Rs 5,000 crore for further NTPC projects and secured a Rs 3,167 crore loan for the Banhardih Coal Block project.
This financial prowess ensures IRFC can sustain its CSR commitments while driving infrastructure growth, positioning it as a dual force for economic and social progress.
Challenges and Opportunities in CSR Execution
The Rs 124.47 crore unspent amount highlights the challenges of executing large-scale CSR projects, such as delays in project implementation, coordination with agencies, and ensuring funds reach the intended beneficiaries. However, IRFC’s transparent transfer to the Unspent CSR Account demonstrates its commitment to eventual impact. The company’s focus on multi-year projects, such as healthcare infrastructure and skill development, requires meticulous planning to ensure funds are utilized effectively within the stipulated timeframe.
Looking Ahead: FY 2025-26 and Beyond
For FY 2025-26, IRFC has set a CSR target of approximately Rs 128 crore, building on its FY 2024-25 commitments. With a borrowing limit of Rs 60,000 crore approved for the upcoming year, IRFC is well-positioned to fund both railway modernization and social initiatives. The company’s focus will remain on health, education, and inclusive development, ensuring that the Rs 124.47 crore in the Unspent CSR Account translates into tangible outcomes.
As IRFC continues to power India’s railways and expand into green energy and infrastructure, its CSR journey reflects a broader vision: to bridge the gap between financial success and social impact, ensuring that every rupee committed becomes a step toward a more equitable India.
(India CSR)
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