CSR spend has grown by 67% to reach Rs. 4,101 crore in FY2015-16 vis-a-vis Rs. 2,450 crore in FY2014-15
As per government data collected from 120 central public sector enterprises (CPSEs) an amount of Rs. 2,450 crore has been incurred during FY2014-15 for undertaking CSR activities/projects. In FY2015-16, CSR activities/projects for 106 CPSEs has overall grown by 67 percent to reach Rs. 4,101 crore.
According to the provisions of Section 135 (5) of Companies Act, 2013, CPSEs shall give preference to the local area and areas around it where they operate for spending the amount earmarked for CSR activities. However, CPSEs may decide to undertake CSR activities in any part of the country, including backward, rural areas of the country.
As per data around 11 central public sector enterprises have invested more than Rs 100 crore in CSR activities/projects. The CPSEs are: Central Coalfields; GAIL (India); Indian Oil; Mahanadi Coalfields; NMDC; Northern Coalfields; NTPC; ONGC; Power Finance Corporation; PGCIL; Rural Electrification Corporation; and South Eastern Coalfields. NTPC tops the list with CSR spend of Rs. 492 crore followed by ONGC with spend of Rs. 421.01 crore, followed by South Eastern Coalfields at Rs 270.85.
As per provisions on Corporate Social Responsibility of the Companies Act, 2013, all companies, including CPSEs fulfilling threshold limits are required to spend at least 2% of their average net profit made during the three preceding years to undertake CSR activities/projects as listed in Schedule-VII to the Companies Act, 2013.
Pravin Prashant
pravin@spoindia.org
