Coal India Limited (CIL) has spent an impressive Rs. 6,149 crore as CSR amount over the past ten years on social development projects.
CIL’s CSR expenditure reached Rs. 850.17 crore, marking a significant increase from the previous year’s Rs. 654 crore.
NEW DELHI (India CSR): The Ministry of Coal’s recent stakeholder consultation at SCOPE Complex, New Delhi, marked a crucial step toward designing a dedicated Corporate Social Responsibility (CSR) framework for India’s coal sector. Senior officials from the Ministry, including Rupinder Brar, Additional Secretary, along with representatives from Coal India Limited (CIL), NLC India Limited, Singareni Collieries Company Limited (SCCL), and leading private coal companies, discussed ways to make CSR efforts more cohesive, measurable, and impactful. Consultation Meeting held on October 7.
This initiative reflects the government’s intent to build an integrated, transparent, and accountable CSR ecosystem for coal enterprises—one that supports both community development and sustainable mining practices.
“Given the growing presence of private players in the sector, need has been felt for a sector-specific CSR framework for coal companies to serve as a guide to promote responsible and sustainable practices, reducing environmental impact and enhance stakeholder engagement among private as well as public sector coal companies.“, Indian Govt said.
As Rupinder Brar Ms. Rupinder Brar, Additional Secretary, Ministry of Coal, urged the coal companies to converge their CSR, welfare, and sustainability efforts for the benefit of the community and also for business by quantifying these efforts to earn green credits.
What Is a CSR Framework for Coal Companies?
A CSR framework provides the guiding principles, processes, and measurable standards for planning, implementing, and reporting corporate social responsibility activities.
For coal companies, this means creating sector-specific guidelines aligned with the Companies Act, 2013, the CSR Policy Rules, 2014, and DPE guidelines, but tailored to the unique social and environmental challenges of coal mining regions.
“During the deliberations it was emphasised that Community benefit should be the ultimate objective and the focus must be on meaningful engagement with local communities to understand their needs and priorities.”, the government said in a statement.
This framework will help companies balance three essential goals:
- Community Development: Prioritizing local needs in health, education, and livelihood.
- Environmental Stewardship: Reducing the ecological footprint of mining operations.
- Sustainable Growth: Aligning CSR initiatives with national sustainability goals.
***
Purpose of the New CSR Framework
The proposed framework seeks to:
- Unify public and private sector practices: Ensuring consistent CSR standards across CIL, NLC, SCCL, and private miners.
- Enhance accountability: Setting measurable targets and transparent reporting systems.
- Promote convergence: Encouraging alignment with government schemes, Sustainable Development Goals (SDGs), BRSR, and GRI reporting standards.
- Foster collaboration: Building partnerships between companies, local communities, and credible implementing agencies.
- Quantify impact: Linking CSR investments with tangible social and environmental outcomes, potentially earning green credits.
***
Key Themes Highlighted by the Ministry
1. Convergence of Efforts
Ms. Rupinder Brar urged coal companies to integrate their CSR, welfare, and sustainability programs. She emphasized quantifying these initiatives to generate measurable impact and “green credits” that reflect environmental responsibility.
2. Localized Impact
The framework encourages companies to prioritize local needs, focusing on health, education, sanitation, and environment in mining-affected areas. Every CSR plan must emerge from a deep understanding of local communities.
3. Collaboration and Knowledge Sharing
Companies are encouraged to collaborate with credible partners for need and impact assessments, ensuring the outcomes are data-driven and community-centered. Knowledge sharing among PSUs and private players will enhance collective learning.
4. Transparency and Accountability
Participants highlighted the importance of robust reporting, adherence to BRSR and SDG goals, and creating Standard Operating Procedures (SOPs) for CSR budget formulation and asset sustainability.
5. Sustainable Community Engagement
The ultimate objective is to ensure that community benefit remains at the heart of CSR—going beyond compliance to create lasting social and environmental transformation.
***
Why the Coal Sector Needs a Dedicated CSR Framework
The coal industry operates in socially and ecologically sensitive zones, affecting local communities and natural ecosystems. While existing CSR laws provide a general direction, coal companies face distinct challenges:
- Displacement and livelihood loss in mining areas.
- Environmental degradation, deforestation, and pollution.
- Need for skill development in rural regions near mines.
- Health and safety issues in mining communities.
A dedicated CSR framework will enable coal companies to address these challenges with context-specific strategies and measurable accountability.
Integrating Best Practices
The proposed framework draws on the successful models implemented by Coal PSUs, including:
- CIL’s “Kayakalp” initiatives for healthcare and sanitation.
- NLC India’s educational programs in Tamil Nadu and Odisha.
- SCCL’s environmental restoration projects in Telangana.
These initiatives demonstrate that sustainable mining is possible when social inclusion and environmental restoration are embedded into corporate policy.
Expected Outcomes
Once implemented, the CSR framework for Indian coal companies is expected to:
- Strengthen community trust and social license to operate.
- Create sector-wide benchmarks for CSR performance.
- Ensure long-term asset sustainability and better utilization of CSR funds.
- Contribute directly to national sustainability goals and green economy transition.
***
Strengthening CSR Implementation Through SOPs, Asset Sustainability, and Strategic Outreach
During the stakeholder consultation, participants emphasized that beyond policy alignment and budgetary commitment, the effectiveness of CSR in the coal sector depends greatly on operational discipline and long-term planning. The stakeholders underscored the urgent need for Standard Operating Procedures (SOPs) that would serve as a uniform reference for CSR budget formulation, project planning, execution, and monitoring across both public and private coal enterprises.
These SOPs would help bring consistency, transparency, and accountability in the allocation and utilization of CSR funds. By clearly defining timelines, approval mechanisms, and evaluation parameters, SOPs can minimize administrative delays and ensure that CSR funds are channelled toward high-impact, community-centric projects. Moreover, the formulation of SOPs will help companies adopt a data-driven approach—linking budgets with project outcomes and enabling better auditability under the Companies Act and BRSR framework.
Stakeholders also pointed out the need to ensure the sustainability of assets created through CSR interventions—such as schools, hospitals, water facilities, and skill centers—by assigning local ownership and integrating them with existing government or panchayat systems. Sustainability should not end with asset creation; it must include long-term maintenance, capacity building, and local community engagement to preserve and enhance the benefits.
Equally crucial is the demand for a dedicated approach from implementing agencies. Coal PSUs and private miners are encouraged to work with credible NGOs, social enterprises, and district administrations that possess deep community linkages and proven expertise. A structured partnership model—defining clear roles, accountability mechanisms, and performance indicators—will help ensure that CSR funds lead to measurable social impact rather than fragmented short-term interventions.
Finally, stakeholders emphasized the importance of an effective outreach and communication strategy to build greater public awareness about CSR initiatives. Transparent dissemination of project outcomes, community success stories, and sustainability results can strengthen stakeholder trust and reinforce the social legitimacy of coal companies. Proactive outreach not only helps in reputation management but also encourages collaboration, volunteerism, and shared ownership among local communities.
***
Coal India Limited and Its Ten Wholly-Owned Subsidiaries
Coal India Limited (CIL), the world’s largest coal-producing company, operates through ten wholly-owned subsidiaries spread across India. These subsidiaries are responsible for coal mining, planning, design, and diversification into renewable energy. Each plays a distinct role in supporting India’s energy security, regional development, and sustainability objectives under the Ministry of Coal.
| Sl. No. | Name of Subsidiary Company | Abbreviation | Nature / Focus Area |
|---|---|---|---|
| 1 | Eastern Coalfields Limited | ECL | Coal mining and production operations primarily in West Bengal and Jharkhand. |
| 2 | Bharat Coking Coal Limited | BCCL | Major producer of coking coal, operating in the Jharia and Raniganj coalfields. |
| 3 | Central Coalfields Limited | CCL | Engaged in coal mining across Jharkhand, focusing on both underground and open-cast mines. |
| 4 | Western Coalfields Limited | WCL | Operations spread across Maharashtra and Madhya Pradesh, supplying coal to power and steel sectors. |
| 5 | South Eastern Coalfields Limited | SECL | India’s largest coal-producing subsidiary, located mainly in Chhattisgarh and Madhya Pradesh. |
| 6 | Northern Coalfields Limited | NCL | Focused on open-cast mining in Singrauli (Madhya Pradesh and Uttar Pradesh). |
| 7 | Mahanadi Coalfields Limited | MCL | Key producer in Odisha, known for large-scale mechanized mining operations. |
| 8 | Central Mine Planning and Design Institute Limited | CMPDIL | Provides exploration, planning, design, and technical consultancy for coal and allied sectors. |
| 9 | CIL Navikarniya Urja Limited | CNUL | Promotes renewable and clean energy initiatives under Coal India’s diversification strategy. |
| 10 | CIL Solar PV Limited | CSPL | Special purpose vehicle for solar power generation and clean energy projects. |
***
Coal India Limited’s CSR Policy and Achievements
Comprehensive CSR Framework Based on Legal Mandates
Coal India Limited (CIL) has developed a robust Corporate Social Responsibility (CSR) Policy aligned with the provisions of the Companies Act, 2013, and its subsequent amendments. The policy also incorporates guidelines and notifications issued by the Ministry of Corporate Affairs (MCA) and the Department of Public Enterprises (DPE), Government of India. This alignment ensures that CIL’s CSR activities comply with national standards for corporate accountability and social investment.
CSR Budget and Allocation Criteria
The CSR budget of CIL is allocated based on 2% of the average net profit (standalone) of the preceding three financial years or as decided by the CIL Board, subject to a ceiling of Rs. 2 per tonne of total coal production of the immediately preceding financial year for those subsidiaries that did not incur a loss. The higher of the two values determines the final CSR budget, ensuring adequate funds for impactful social development.
Consistent Leadership in Corporate Social Outreach
Since the institutionalisation of CSR within CIL, the company has spent an impressive Rs. 6,149 crore over the past ten years on social development projects. Its focus areas include education, healthcare, environmental sustainability, skill development, and rural infrastructure. CIL consistently ranks among the top five Public Sector Undertakings (PSUs) in India for social outreach and impact.
CSR Expenditure Highlights
During the most recent fiscal year 2024-25, CIL’s CSR expenditure reached Rs. 850.17 crore, marking a significant increase from the previous year’s Rs. 654 crore. This upward trend demonstrates the company’s unwavering commitment to inclusive growth and community welfare, particularly in mining-affected regions across India.
(India CSR)
