CSR of NMDC are carried out in remote areas, and backward and face serious law and order problems due to left-wing extremism.
By Rusen Kumar
New Delhi (India CSR): The amount spent during the year on account of CSR activities by NMDC Limited, a state-run mining PSU, was Rs. 287.33 crore which is 3.06% of Current Year (CY) Profits of FY 2021-22 (Previous Year Rs. 158.62 crores).
The gross Corporate Social Responsibility (CSR) amount required to be spent during the year was Rs. 148.15 crores, 2% of the last three years’ average PBT of Rs. 7407.49 crores, (Previous Year Rs. 130.00 crores (2% of the last three years average PBT Rs. 6499.95 crores).
NMDC Ltd., a Navratna PSE under Ministry of Steel, Govt. of India is the single largest producer of iron ore in India, owns and operates highly mechanized iron ore mines in Chhattisgarh and Karnataka.
CSR Mechanism
The company said that more than 75% of NMDC’s CSR activities are taken up in partnership with the State Authorities. These activities are undertaken based on a detailed consultative process, which starts at the grass root Panchayat level and extends up to the level of the District Administrative and even the Chief Secretary in the case of Chhattisgarh State, where more than 80% of the CSR activities are being implemented.
Development works and activities were conducted in line with the District Development Plan of the districts concerned, as per relevant State Authorities, the company said. NMDC has identified the disadvantaged, vulnerable, and marginalized stakeholders with the help of socio-demographic data of the community through baseline surveys conducted as part of its CSR policy objectives and through consultation with State Authorities.
CSR Policy
NMDC has a CSR policy which addresses its objectives, focus areas, organisational mechanisms, and guidelines for identifying the CSR activities along with the implementation and monitoring strategies.
Its CSR policy addresses in detail the budgetary allocation, approval methodology, and fund utilization mechanism.
Major areas of projects
The major areas in which expenditure has been incurred are – employment enhancing Vocational Skills including Skill Up-gradation, drinking Water integrated watershed development, and Sanitation promotion of Education- Special Education in primary schools with a special focus on Districts in which NMDC projects are located.
The Company is investing substantially in education, development of infrastructure, healthcare services, and clean drinking water, along with imparting technical skill sets aimed at enhancing employability and income generation, etc. among other initiatives, primarily in surrounding areas of its operations.
The CSR board is chaired by the Director of Finance.
(Rusen Kumar, Indian journalist, writes regularly on CSR and Sustainability.)
