Allocation of CSR Funds by PSUs
As mandated by the Companies Act of 2013, Central Public Sector Enterprises (CPSEs) under the Ministry of Steel are required to allocate at least 2% of their average net profits from the last three financial years for Corporate Social Responsibility (CSR) initiatives. Any unspent funds from the previous year are carried forward for future use. Recent disclosures reveal the CSR spending of various CPSEs over the past three years, highlighting their commitment to social welfare despite some financial challenges.
CSR Spending Overview
The CSR expenditures of CPSEs under the Ministry of Steel have been documented for the financial years 2022-23, 2023-24, and projections for 2024-25. Notably, the Steel Authority of India Ltd. (SAIL) led the way with significant allocations, spending ₹16,246 lakhs in 2022-23, followed by ₹16,193 lakhs in 2023-24, and a projected ₹13,809 lakhs for 2024-25. Other companies, such as NMDC Ltd. and MOIL Ltd., also reported varying levels of CSR spending, reflecting their commitment to community development.
However, some companies faced financial constraints. Rashtriya Ispat Nigam Ltd. (RINL) did not allocate any CSR funds for the fiscal years 2023-24 and 2024-25 due to financial losses. Similarly, KIOCL Ltd. adjusted its CSR obligations for 2024-25 by utilizing provisions that allow for the carryover of excess CSR expenditures from previous years.
Focus Areas of CSR Activities
The CSR initiatives undertaken by these enterprises focus on several key areas aimed at enhancing community welfare. These include promoting education and health, empowering women, generating sustainable income through Self Help Groups, and providing assistance to individuals with disabilities. Additionally, efforts are made to improve access to water and sanitation facilities. The overarching goal of these projects is to benefit society at large, although specific data on the number of beneficiaries is not consistently maintained.
The CSR projects are primarily implemented in areas surrounding steel plants, townships, and mines, which often include populations from Scheduled Tribes, Scheduled Castes, and other backward communities. This strategic focus ensures that the benefits of CSR activities reach those who are most in need.
Government Oversight and Reporting
The information regarding CSR spending and initiatives was presented by the Minister of State for Steel and Heavy Industries, Shri Bhupathiraju Srinivasa Varma, in a written response to the Lok Sabha. This transparency underscores the government’s commitment to monitoring and promoting CSR activities within CPSEs. By mandating these enterprises to invest in social welfare, the government aims to foster a culture of corporate responsibility that aligns with national development goals.
The ongoing efforts of CPSEs in CSR not only contribute to community upliftment but also reflect a growing recognition of the role that businesses play in societal development. As these companies navigate financial challenges, their commitment to CSR remains a vital aspect of their operational ethos.
Observer Voice is the one stop site for National, International news, Sports, 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.
