CSR Funds by CPSEs

After coming into force of 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.

No specific guidelines have been issued by Department of Public Enterprises (DPE) to the CPSEs to donate funds for construction of cancer hospitals/ up gradation of hospitals/ constructions of shelters, etc.

As per information furnished by 120 CPSEs an amount of Rs. 2450.31 crore has been incurred during 2014-15 and an amount of Rs. 4100.93 crore has been incurred by 106 CPSEs during 2015-16 for undertaking CSR activities / projects. Details are given in Annexure.

As per first proviso 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.  DPE is the nodal Department for CPSEs and the companies operating in private sector do not fall within the purview of this Department No guidelines have been issued by DPE regarding CSR work areas for CPSEs.