CSR of Coal India Limited: History, Evolution, Development

CSR of Coal India Limited: Tracing the History, Evolution, and Development of Corporate Social Responsibility Initiatives.

The concept of Corporate Social Responsibility (CSR) has gained prominence from all avenues. Organizations have realized that government alone will not be able to get success in its endeavor to uplift the downtrodden of the society. Coal India Limited (CIL), a state-owned coal mining corporate, has been at the forefront of integrating Corporate Social Responsibility (CSR) into its business ethos. Over the years, CIL has evolved its CSR initiatives to not only comply with regulatory requirements but also to contribute significantly to environmental sustainability and community welfare.

In the year 2012-13, A.K. Debnath, CMD of Central Mine Planning and Design Institute Limited said in company’s CSR report, “Corporate Social Responsibility is, in simple words, what and how we give back to our society. Our country is growing by the day at all frontiers. Our growth rate is being marveled upon even by the developed countries. It will not be wrong to say that the coal industry is firing this growth and Coal India is at the centre of it. Growth without development doesn’t account for much.”

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The article explores the historical development, strategic implementation, and future prospects of CSR activities undertaken by Coal India Limited.

Key Takeaways

• CIL has a rich history of CSR initiatives, starting from basic community assistance to comprehensive environmental and social programs.
• The integration of CSR into CIL’s corporate strategy has enhanced its brand reputation and stakeholder trust.
• CIL’s focus on eco-friendly practices and renewable energy projects highlights its commitment to environmental sustainability.
• Community engagement through educational, healthcare, and infrastructure projects has significantly contributed to local development.
• Future CSR efforts by CIL are geared towards aligning with global trends and addressing the increasing expectations of stakeholders.

Largest CSR Spender in India

According to PIB, “Coal India Limited through its CSR initiatives is bringing joy in the lives of the needy people of the society. Featuring consistently among the largest corporate spenders in the country, the company including its subsidiaries has spent more than Rs. 5000 crores under CSR during the nine-year period of FY 14-15 to 22-23.”

“The thematic focus areas of the company have been Healthcare, Sanitation & Nutrition, Education & Livelihood, Rural Development, Promotion of Sports, Environment Conservation and Disaster Management.”, Govt. informed in a statement.

In March 2024, Coal Minister Pralhad Joshi complimented the team of Coal Ministry led by Secretary Coal Amrit Lal Meena for the continued commitment towards taking up high-impact projects in areas of health, education, skilling and sports to improve quality of life of the beneficiaries.”, the Govt. said.

Union Minister for Coal, Mines & Parliamentary Affairs, Pralhad Joshi launched new Corporate Social Responsibility (CSR) initiatives focused on Education of CIL in an event held at Ministry of Coal on March 7, 2024.

Historical Overview of CSR in Coal India Limited

Early Initiatives and Foundations

Coal India Limited (CIL) began its CSR journey shortly after its establishment, focusing initially on the welfare of its employees and the communities surrounding its operations. The early initiatives were primarily ad-hoc and philanthropic in nature, including building schools and hospitals.

Significant Milestones in CSR

Over the years, CIL has marked several significant milestones in its CSR journey. The introduction of structured CSR policies in the early 2000s was a turning point, aligning with global CSR standards. This period saw an increase in the scale and scope of projects, ranging from environmental sustainability to education and healthcare.

CIL’s Strategic Transformation

In the fiscal year 2011-12, Coal India Limited (CIL) entered a new phase with its Memorandum of Understanding. This period was significant as CIL emphasized Corporate Social Responsibility (CSR) more than before. Along with CSR, the focus was also on Research & Development, Sustainable Development, and Corporate Governance. This shift marked CIL’s move towards more ethical and sustainable business practices.

Increased Investment in Community and Innovation

2011-12 also saw CIL significantly boost its investment in CSR and R&D. The company aligned its CSR spending with the guidelines from the Department of Public Enterprises, showing a deeper commitment to community support. At the same time, R&D funding doubled from Rs. 15 crores to Rs. 30 crores. This increase reflected CIL’s commitment to innovation and responsible mining, shaping the company’s focus on sustainable growth and technological advancements.

Government Regulations and Their Impact

The government has played a crucial role in shaping the CSR activities of CIL. The introduction of the CSR mandate under the Companies Act, 2013, required CIL to allocate a specific percentage of its profits to CSR activities. This regulation not only increased the volume of CSR initiatives but also brought more strategic planning and accountability into the process.

Strategic Development of CSR Programs

Integration with Corporate Strategy

Coal India Limited (CIL) strategically aligns its CSR initiatives with its corporate mission and vision. This ensures that CSR activities not only address social and environmental issues but also support the company’s overall business objectives. The integration process involves all levels of management to ensure cohesive implementation and effectiveness.

CSR Policy of Coal India

Coal India Limited has a well-defined CSR policy introduced w.e.f. 29.6.2010 based on the guidelines issued by Department of Public Enterprise for Central PSUs on CSR in April, 2010 which is also applicable to its associate companies.

CIL Board in its 413th meeting held on 14th October 2O2O approved “Modified CSR policy of Coal lndia Limited”. A copy of the approved policy is enclosed for implementation in CIL and its subsidiaries. CIL Board has also authorized subsidiary boards to delegate power to D(P) of the concerned subsidiary to approve CSR projects upto a limit. The modified CSR policy of CIL has supersede previous policy and administrative orders issued earlier in this regard. The policy shallcome into force with immediate effect.

Objective of CSR Policy of Coal India

The main objective of CSR policy of Coal India is to lay down guidelines for CIL and its subsidiaries to make CSR a key business process for sustainable development for the society. lt aims at supplementing the role of the government in enhancing welfare measures of the society based on the immediate and long term social and environmental consequences of coal mining.

With the rapidly changing corporate environment, Coal lndia Limited (ClL) has adopted CSR as a strategic tool for sustainable growth. For CIL in the present context, CSR means not only investment of funds for social activity but also integration of business processes with social processes.

Even much before the issue became a global concern, CIL was aware of its Corporate Social Responsibility and was fulfilling the aspiration of the society through well-defined “Community Development Policy” within the periphery of 8 kilometers of its project sites. This has resulted into a harmonious relationship between CIL and the peripheral communities.

As per clause 135 of Companies Act 2013, CSR committees of all eligible companies need to formulate and recommend to the Board, a CSR policy which shall indicate the activities to be undertaken by the company as specified in Schedule Vll.

ln the aforesaid backdrop, CSR policy of CIL has been framed after incorporating the features of the Companies Act 2013, notifications issued by Ministry of Corporate Affairs (MCA) and Department of Public Enterprises (DPE), Govt. of lndia from time to time and Companies (Amendment) Act 2019 and broadly covers guidelines for the following:

• a. Welfare measures for the community at large, so as to ensure the poorer sections of the society derive the maximum benefits;
• b. Contribution to the society by way of socialandculturaldevelopment, imparting education, training and social awareness especially with regard to the economically backward classes for their development and generation of income to encourage self-employment and dignified living; and
• c. Protection and safeguard of environment and maintaining ecological balance.

Improving the living condition of the poor and needy people of the society living in and around coalfields/mining areas in different parts of India is the major objective of our CSR activities. The CSR policy is operational within the radius of 15 Km of the project site and areas including Headquarters. Further CSR activities are also undertaken beyond mining areas within the respective State with the approval as per norms.

CIL believes in ‘mining with a human face’ through a socially sustainable inclusive development. It pursues a structured CSR policy in and around the coal mining areas to improve quality of life with community consensus and
inclusive participation.

Focus Areas and Program Types

CIL has identified several key areas for its CSR activities, including education, healthcare, and environmental sustainability. The company implements a variety of program types, such as:

• Community development projects
• Health camps and medical outreach
• Educational scholarships and support
• Environmental restoration projects

Partnerships and Collaborations

CIL actively seeks partnerships with government bodies, NGOs, and other stakeholders to amplify the impact of its CSR efforts. These collaborations help to leverage additional resources and expertise, making the programs more effective and far-reaching. A notable achievement in this area is the CSR Winner Award for Rural Development and Infrastructure, which highlights the company’s commitment to impactful CSR.

Environmental Sustainability Initiatives

Eco-friendly Mining Practices

Coal India Limited has implemented several eco-friendly mining practices to reduce its environmental footprint. These include the use of water sprinklers for dust suppression, backfilling of mined areas, and progressive land reclamation. The company has also invested in modern equipment that minimizes soil disruption.

Renewable Energy Projects

The shift towards renewable energy is a key component of Coal India Limited’s sustainability strategy. The company has embarked on solar power projects and is exploring wind energy options. This initiative not only supports the national goal of increasing renewable energy capacity but also aligns with global sustainability trends.

Waste Management and Reduction

Effective waste management strategies are crucial for minimizing the environmental impact of mining operations. Coal India Limited has developed comprehensive waste management systems that include the recycling of mining waste, proper disposal methods, and the treatment of wastewater to prevent contamination of local water bodies.

Community Engagement and Development

Coal India Limited has consistently prioritized community engagement and development as a cornerstone of its CSR initiatives. The company’s efforts are focused on creating sustainable impacts in the communities surrounding its operations.

Educational Support and Scholarships

Coal India Limited has established numerous scholarship programs and educational initiatives to support young students in mining regions. These programs aim to enhance educational opportunities and foster a brighter future for these communities.

• Scholarship programs for higher education
• Support for building and upgrading school facilities
• Special coaching classes for competitive exams

Healthcare Services and Facilities

The company has made significant investments in healthcare to improve the quality of life in mining communities. By establishing medical facilities and organizing health camps, Coal India Limited ensures that basic healthcare services are accessible to all.

• Mobile health units
• Free health camps and check-ups
• Partnership with local hospitals for advanced care

Infrastructure and Local Economy Boost

Coal India Limited has been instrumental in boosting the local economy and infrastructure. The development of roads, markets, and other public facilities has significantly improved the quality of life and economic opportunities in these areas.

• Development of public transportation systems
• Enhancement of local markets
• Support for small and medium enterprises

Employee Welfare and Labor Practices

Safety Measures and Protocols

Coal India Limited places a strong emphasis on the safety of its employees, implementing rigorous safety protocols and measures. The company adheres to national safety regulations and often exceeds them to ensure a secure working environment. Key initiatives include regular safety drills, updated equipment, and comprehensive training programs.

Training and Skill Development

The company is committed to enhancing the skills and knowledge of its workforce. Structured training programs are tailored to meet the needs of employees across various levels. These programs focus on both technical skills and soft skills, ensuring that employees are well-equipped to meet the challenges of the industry.

Employee Health and Benefits

Coal India Limited offers a comprehensive benefits package to its employees, which includes health insurance, retirement benefits, and wellness programs. The focus on employee health is a testament to the company’s commitment to its workforce. Efforts to improve workplace conditions and reduce occupational hazards are ongoing, reflecting the company’s dedication to employee welfare.

Monitoring and Reporting of CSR Activities

Internal Audits and Compliance

Coal India Limited ensures rigorous internal audits to maintain compliance with CSR standards. These audits help in identifying areas of improvement and ensuring that all activities align with the company’s CSR policies.

Transparency and Stakeholder Communication

Effective communication with stakeholders is crucial. The company regularly publishes CSR reports and updates on its website, ensuring that all interested parties are well-informed about the ongoing activities and their impacts.

Impact Assessment and Continuous Improvement

The company conducts detailed impact assessments to measure the effectiveness of its CSR initiatives. This data-driven approach allows for continuous improvement in CSR strategies, ensuring they meet the evolving needs of the community and environment.

Challenges and Future Prospects in CSR

Adapting to Global CSR Trends

As the world grapples with the pressing challenges of climate change, there’s an increasing emphasis on transitioning from fossil fuels to sustainable energy sources. Coal India Limited must adapt its CSR strategies to align with global sustainability trends, ensuring they remain relevant and effective in a rapidly changing environmental landscape.

Addressing Local Community Concerns

By harmonizing growth with responsibility, coal CPSEs can emerge as pillars of progress. It is crucial for Coal India Limited to address local community concerns proactively, ensuring that their operations contribute positively to the surrounding areas and their inhabitants.

Long-term Sustainability Goals

Coal India Limited faces the challenge of setting and achieving long-term sustainability goals. These goals should focus on reducing environmental impact and promoting social welfare, which will require continuous improvement and adaptation to new technologies and practices.

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Conclusion

In conclusion, the journey of CSR initiatives by Coal India Limited reflects a significant evolution and development over the years. From its early days of basic community assistance to its current comprehensive programs addressing environmental sustainability, education, and health, Coal India Limited has shown a steadfast commitment to its social responsibilities. The company’s efforts not only enhance its corporate image but also contribute positively to the socio-economic development of the regions it operates in. As Coal India Limited continues to expand its CSR activities, it sets a benchmark for other corporations in India, demonstrating the powerful role of corporate responsibility in nation-building.

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Frequently Asked Questions: CSR of Coal India

What were the early initiatives and foundations of CSR in Coal India Limited?

The early initiatives focused on community welfare, including education and health services, which laid the groundwork for future CSR activities.

How has the government influenced CSR practices at Coal India Limited?

Government regulations have shaped CSR practices by setting guidelines and standards that Coal India Limited must adhere to, ensuring accountability and sustainability in their CSR efforts.

What are the main focus areas of CSR programs at Coal India Limited?

The main focus areas include environmental sustainability, community engagement, and employee welfare, aiming to create a positive impact on society and the environment.

Can you describe some eco-friendly mining practices adopted by Coal India Limited?

Eco-friendly practices include the use of cleaner technologies, reforestation, and water management systems to minimize environmental impact.

How does Coal India Limited engage with local communities?

Engagement strategies include educational programs, healthcare facilities, and infrastructure development to support local economies and improve quality of life.

What challenges does Coal India Limited face in its CSR efforts?

Challenges include adapting to global CSR trends, addressing local community concerns, and achieving long-term sustainability goals.

(India CSR)