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Home Corporate Social Responsibility

SC Disposes Plea Seeking Diversion of Oil Companies’ CSR Funds to Public Transport

Supreme Court disposes PIL seeking oil companies' CSR funds for public transport but allows representation to EPCA.

India CSR by India CSR
December 17, 2024
in Corporate Social Responsibility
Reading Time: 4 mins read
Supreme Court
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NEW DELHI (India CSR): The Supreme Court has disposed of a Public Interest Litigation (PIL) requesting directions to oil companies, both public and private, to divert part of their Corporate Social Responsibility (CSR) funds towards improving public transport systems in heavily polluted cities like Delhi. The plea aimed to address the alarming air pollution crisis and its health impacts by enhancing public transport infrastructure.

While disposing of the petition, a Bench led by Justice B.V. Nagarathna and Justice N. Kotiswar Singh allowed the petitioner the liberty to approach relevant authorities, including the Environment Pollution (Prevention and Control) Authority (EPCA), with their concerns.

1. The PIL: A Step Towards Cleaner Cities

Plea for CSR Funds Allocation

The PIL, filed by Tsunami on Roads, an NGO, emphasized that oil companies should contribute a portion of their CSR funds to support public transport. The petition argued that since fossil fuel consumption contributes significantly to air pollution, oil companies have a moral responsibility to mitigate environmental damage by investing in solutions like public transportation.

It further proposed that directing CSR funds toward enhancing bus services, metro infrastructure, and cleaner transport solutions could significantly reduce health risks caused by vehicular emissions.

Representation to Relevant Authorities

The Supreme Court disposed of the petition, stating that the petitioner can approach appropriate authorities. The Bench remarked:

“It is needless to observe that if such a representation is made by the petitioner, the same shall be considered in accordance with law.”

This leaves the door open for the NGO to work with regulatory bodies like EPCA to push for sustainable solutions.

2. Air Pollution and the Role of Public Transport

The Need for Better Transport Infrastructure

The PIL highlighted the critical role of public transport in combating air pollution and reducing traffic congestion. It pointed out that developed nations focus on efficient mass transportation systems rather than investing in more roads and flyovers.

Public transport is not only cost-effective but also reduces the dependency on private vehicles, which are major contributors to poor air quality in cities like Delhi.

Global Practices for Cleaner Air

Developed countries have prioritized expanding public transport options to curb emissions. The petition argued that India, being a developing nation, often faces financial challenges in sustaining and upgrading its transport systems. Therefore, CSR funding can serve as an alternative resource for enhancing public transport infrastructure.

3. Role of EPCA and Environmental Funds

Utilizing Existing Environmental Cess

The PIL also sought directions to the EPCA to utilize a part of the environmental cess collected by the Central Pollution Control Board (CPCB). Funds collected under Environmental Protection Charges (EPC) and Environmental Compensation (EC) could be used to improve public transport systems, in addition to other pollution-control activities.

This proposal aimed to ensure better utilization of existing resources while promoting sustainable urban mobility.

EPCA’s Mandate

The Environment Pollution (Prevention and Control) Authority (EPCA) is responsible for monitoring and mitigating pollution in the National Capital Region (NCR). The petition suggested that EPCA should frame guidelines on using CSR funds and environmental cess to strengthen public transport, which aligns with its core mandate.

4. Court’s Decision and Way Forward

Judicial Observations

While disposing of the plea, the Supreme Court refrained from issuing direct orders to oil companies. However, it granted the petitioner liberty to raise the matter before authorities like EPCA. This decision allows room for further deliberation and actionable steps at the administrative level.

A Call for Collaborative Efforts

The court’s response highlights the need for collaborative efforts between government bodies, corporations, and civic organizations to tackle air pollution. The plea underscores the potential of CSR funding as a supplementary resource for sustainable urban development.

5. You Learn: A Step in the Right Direction

The Supreme Court’s decision to dispose of the plea signals a balanced approach, leaving the petitioner free to explore administrative avenues. The demand to use oil companies’ CSR funds for public transport highlights a practical and innovative solution to India’s pollution crisis.

Improving public transport can play a crucial role in reducing emissions and alleviating urban congestion. Moving forward, the collaboration between policymakers, environmental authorities, and corporations will be key to addressing these pressing challenges.

As cities like Delhi struggle with worsening air quality, initiatives that prioritize sustainable transportation are essential for building healthier, cleaner, and more inclusive urban environments.

(India CSR)

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India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

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