3rd CIL CSR Conclave Begins in Kolkata, Celebrating a Decade of India’s CSR
The 3rd CIL CSR Conclave commenced today in Kolkata, marking a significant milestone in India’s Corporate Social Responsibility (CSR) journey. This year, the event celebrates ten years since the institutionalization of CSR legislation in India. Dr. C.V. Ananda Bose, the Governor of West Bengal, inaugurated the conclave. He praised Coal India Limited (CIL) for its commitment to social responsibility. Dr. Bose emphasized the importance of looking beyond boundaries to foster relationships in this transformational era.
CIL has emerged as a leader in CSR spending among Indian corporations. Over the past decade, the company has invested a remarkable ₹5,579 crores in various social initiatives, surpassing the statutory requirement by 31%. This commitment places CIL among the top three corporate spenders in CSR in India.
CIL’s Commitment to CSR Initiatives
Since the statutory mandate for CSR began in FY 2015, CIL has consistently exceeded its financial obligations. The company was required to spend ₹4,265 crores over ten years but has outperformed this target by ₹1,314 crores. This achievement reflects CIL’s dedication to social welfare and community development. The average annual CSR expenditure during this period has been around ₹558 crores.
Shri Vikram Dev Dutt, Secretary of the Ministry of Coal, highlighted that CSR is a fundamental principle for CIL and its subsidiaries. He announced that starting in January, CIL would implement theme-based CSR initiatives every month. This approach aims to enhance the impact of their social programs. CIL Chairman P.M. Prasad reiterated the company’s commitment to CSR, noting that the majority of the funds have been directed towards health and education.
Focus Areas of CIL’s CSR Spending
CIL’s CSR spending has primarily focused on three key areas: health care, education, and livelihood. These sectors accounted for 71% of the total expenditure, amounting to ₹3,978 crores. Health care received the largest share, with ₹2,770 crores, nearly 50% of the total CSR budget. Education and livelihood initiatives followed, receiving ₹1,208 crores, which is over one-fifth of the total spend.
The remaining funds have been allocated to various other initiatives, including rural development, environmental sustainability, sports promotion, and disaster management. Notably, 95% of the CSR funds were utilized in eight operational states, with a strong focus on Odisha, Chhattisgarh, Jharkhand, Madhya Pradesh, and Maharashtra. This targeted approach ensures that the funds have a meaningful impact on the communities that CIL serves.
Regulatory Framework and Future Directions
According to the ‘Companies Act 2013’, CIL allocates its CSR budget based on 2% of the average net profit from the previous three financial years or ₹2 per tonne of coal produced, whichever is higher. This regulatory framework ensures that CIL’s CSR initiatives are financially sustainable and aligned with its operational performance.
CIL’s subsidiaries are encouraged to spend 80% of their CSR funds within a 25 km radius of their command areas, while the remaining 20% can be spent in the state where they operate. However, CIL itself is not restricted by geographical boundaries, allowing it to implement CSR projects across India. This flexibility enables CIL to address pressing social issues effectively and expand its reach.
During the conclave, Shri Vinay Ranjan, Director (Personnel) of CIL, mentioned that the company was the first Central Public Sector Enterprise (CPSE) in India to establish a Community Development cadre in 2014. This initiative aims to enhance the focus on CSR activities and ensure that they are tailored to the specific needs of the communities served.
The 3rd CIL CSR Conclave not only celebrates a decade of impactful initiatives but also sets the stage for future endeavors in corporate social responsibility.
Observer Voice is the one stop site for National, International news, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.