HAL, BEML, GRSE and BEL among top contributors; Hindustan Shipyard did not allocate CSR funds due to losses
NEW DELHI (India CSR): Defence Public Sector Undertakings (DPSUs) collectively spent more than Rs 18 crore on Corporate Social Responsibility (CSR) initiatives during the financial year 2011-12, according to information provided by the Government of India in Parliament.
The data was shared by Minister of State for Defence M.M. Pallam Raju in a written reply to Member of Parliament Pashupati Nath Singh in the Lok Sabha on August 13, 2012.
The reply detailed the amount utilized by nine Defence Public Sector Undertakings under CSR activities, reflecting the early stage of CSR adoption among central government enterprises before CSR spending became mandatory under the Companies Act, 2013.
HAL Emerges as Top CSR Spender
Among the nine DPSUs, Hindustan Aeronautics Limited (HAL) reported the highest CSR spending during the year.
HAL allocated Rs 5.81 crore for various CSR initiatives, demonstrating its early commitment to community development and social initiatives.
Other significant contributors included BEML Limited and Garden Reach Shipbuilders & Engineers Limited (GRSE), which also reported notable CSR expenditures.
CSR Spending by Defence Public Sector Undertakings
The details of funds utilized by the DPSUs during 2011-12 are as follows:
| S. No. | Defence Public Sector Undertaking | CSR Amount Utilised (Rs Crore) |
|---|---|---|
| 1 | Hindustan Aeronautics Ltd (HAL) | 5.81 |
| 2 | Bharat Electronics Ltd (BEL) | 2.36 |
| 3 | Bharat Dynamics Ltd (BDL) | 0.13 |
| 4 | Goa Shipyard Ltd (GSL) | 0.84 |
| 5 | Garden Reach Shipbuilders & Engineers Ltd (GRSE) | 2.90 |
| 6 | Hindustan Shipyard Ltd (HSL) | Nil |
| 7 | BEML Ltd | 3.47 |
| 8 | Mazagaon Dock Ltd (MDL) | 1.07 |
| 9 | Mishra Dhatu Nigam Ltd (MIDHANI) | 1.48 |
Hindustan Shipyard Did Not Allocate CSR Funds
The government clarified that Hindustan Shipyard Limited (HSL) did not allocate any CSR funds during the year.
The reason cited was that HSL was a loss-making public sector enterprise, and therefore it was not required to allocate funds for CSR activities under the guidelines applicable at the time.
CSR Before the Companies Act, 2013
The CSR spending reported in 2011-12 occurred before the introduction of mandatory CSR provisions under Section 135 of the Companies Act, 2013, which came into effect in 2014.
Before this law, CSR spending by public sector undertakings was largely guided by government guidelines and voluntary initiatives, particularly among large central public sector enterprises.
Since then, CSR spending by both public and private companies in India has grown significantly, contributing to projects in education, healthcare, rural development, environmental sustainability, and skill development.
Growing Role of Defence PSUs in Social Development
Defence PSUs play a vital role not only in India’s defence manufacturing ecosystem but also in community development and nation-building through CSR initiatives.
Many of these companies support projects in areas such as:
- Rural infrastructure
- Healthcare services
- Education and skill development
- Environmental sustainability
- Community welfare programs
Their CSR contributions have expanded considerably in recent years with structured frameworks and larger allocations.
Key Highlights
- Defence PSUs spent over Rs 18 crore on CSR in 2011-12.
- HAL was the largest contributor with Rs 5.81 crore.
- BEML and GRSE also reported significant CSR spending.
- Hindustan Shipyard Limited (HSL) did not allocate CSR funds due to financial losses.
- Information was provided in Lok Sabha on August 13, 2012 by MoS Defence M.M. Pallam Raju.
