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Home Corporate Social Responsibility

Corporate Social Responsibility (CSR) of PSUs in India

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.

India CSR by India CSR
in Corporate Social Responsibility
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The Importance of Corporate Social Responsibility (CSR) in Modern Business Operations I India CSR
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NEW DELHI (India CSR): The Corporate Social Responsibility (CSR) Guidelines issued by the Department of Public Enterprises in April 2010 are applicable to all Central Public Sector Enterprises (CPSEs) irrespective of any “Ratna Status”.

Corporate Social Responsibility is a company’s commitment to operate in an economically, socially and environmentally sustainable manner, while recognizing the interests of its stakeholders.  Through CSR, the organizations serve the interests of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of their operations.  The thrust of CSR in public sector is on inclusive growth, sustainable development and capacity building with due attention to the socio-economic needs of the neglected and marginalized sections of the society.

Under these guidelines, CPSEs have to create mandatorily, through a Board Resolution, a CSR budget as a specified percentage of net profit of the previous year.

Expenditure range for CSR in a financial year is 3-5% of the net profit of previous year in case of CPSEs having profit less than Rs. 100 crore; 2-3% (subject to minimum of Rs. 3 crore) in case the profit ranges from Rs. 100 crore to Rs. 500 crore and 0.5-2% 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 which forms a part of the annual Memorandum of Understanding (MoU) signed between CPSEs and the Government.

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 frame work of DPE guidelines with the approval of their Boards.

Total funds allocated for Corporate Social Responsibility and the funds utilized out of the same for the last three years upto 2011-12 (till September, 2011) in case of Maharatna and Navratna CPSEs are: 

Maharatna CPSEs

S. No. Name of the CPSEYearTotal funds allocated for CSR (Rs. Crore)Percentage of Profit After Tax (PAT) of previous year Funds utilized for CSR (Rs. Crore)
1.Coal India Limited2009-102010-112011-12 (till Sep. 2011)43.81262.28553.332.112.735.0940.14152.3337.26
2.Indian Oil Corporation Limited2009-102010-112011-12 (till Sep. 2011)37.69131.1195.601.281.281.2846.85128.4148.80
3.National Thermal Power Corporation Limited2009-102010-112011-12 (till Sep. 2011)16.7472.3745.520.200.830.5020.4072.216.48
4.Oil & Natural Gas Corporation Limited2009-102010-112011-12 (till Sep. 2011)322.52335.35378.482.02.02.0268.87219.0321.86
5.Steel Authority of India Limited2009-102010-112011-12 (till Sep. 2011)80.0094.0064.001.301.391.3078.7968.9522.94

Navratna CPSEs

S. No. Name of the CPSEYear Total funds allocated for CSR (Rs. Crore)Percentage of Profit After Tax (PAT) of previous year Funds utilized for CSR (Rs. Crore)
1.Bharat Electronics Limited2009-102010-112011-12 (till Sep. 2011)2.592.741.840.360.24—2.592.080.35
2.Bharat Heavy Electrical Limited2009-102010-11

2011-12 (till Sep. 2011)

3.1421.55

30.05

0.10.5

0.5

6.014.30

1.80

3.Bharat Petroleum Corporation Limited2009-102010-11

2011-12 (till Sep. 2011)

14.7222.0

07.73

2.01.43

0.5

14.1218.23

1.50

4.GAIL (India) Limited2009-102010-11

2011-12 (till Sep. 2011)

55.9169.54 (includes carry forward amount of financial year 2009-10) 80.95 (includes carry forward amount of financial year 2010-11)2.02.0

2.0

45.7848.43

14.85

5.Hindustan Aeronautics Limited2009-102010-11

2011-12 (till Sep. 2011)

No specific allocation of money for CSR, as CSR Policy was notified formally during November, 2010 5.00—-PAT of 2010-11 is yet to be declared3.901.79

0.17

6.Hindustan Petroleum Corporation Limited2009-102010-112011-12 (till Sep. 2011)15.0015.0030.782.411.542.0013.8420.103.59
7.Mahanagar Telephone Nigam Limited2009-102010-112011-12 (till Sep. 2011)Since MTNL is in losses, no specific allotment is made under CSR head—-—
8.National Aluminium Company Limited2009-102010-11

2011-12 (till Sep. 2011)

12.728.141

0.69

1.01.0

1.0

12.728.14

10.69

9.NMDC Limited2009-102010-112011-12 (till Sep. 2011)80.0081.5680.131.901.800.5783.0762.2337.24
10.Neyveli Lignite Corporation Limited2009-102010-112011-12 (till Sep. 2011)5.9012.4712.980.721.001.008.1913.231.02
11.Oil India Limited2009-102010-112011-12 (till Sep. 2011)20.0025.0051.900.950.952.0024.1229.4015.00
12.Power Finance Corporation Limited2009-102010-112011-12(till Sep. 2011)Nil11.8913.10—0.50.5—1.931.00
13.Power Grid Corporation of India Limited2009-102010-112011-12 (till Sep. 2011)12.6720.4126.970.751.001.004.3115.586.62
14.Rashtriya Ispat Nigam Limited2009-102010-112011-12 (till Sep. 2011)12.7515.4012.000.952.001.829.3711.735.39
15.Rural Electrification Corporation Limited2009-102010-112011-12 (till Sep. 2011)3.185.0012.850.250.250.500.311.370.27
16.Shipping Corporation of India Limited2009-102010-112011-12 (till Sep. 2011)9.413.775.671.01.01.02.035.84 (including the balance carried forward from the previous year1.13

(With Inputs from Ministry of Heavy Industries & Public Enterprises.)

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