Government of India has announced today that in 2014-2015, 116 Public Sector Enterprises (PSUs) have spent an amount of rs. 2447.59 Crore on Corporate Social Responsibility (CSR) activities and no complaint has been received on misuse of these funds.
Today, Anant Geete the Heavy Industries and Public Enterprises Minister said in Rajya Sabha during the question hour after several members expressed concern over media reports suggesting that there have been misuse of CSR funds, especially by private companies.
Geete told the members that he understood their concerns and added that he was not ruling out the possibility of misuse. He however added that his ministry had received no “written” complaint regarding which could be acted upon. Speaking about companies in the private sector, he said the government did not control these companies, but has issued guidelines. “If there is a specific complaint, we can act on it,” he said.
As members voiced concern about the spending of funds in the private sector, Geete said his ministry was the nodal department for the public sector enterprises. Geete also said that meetings to monitor the spending of these funds are held every six months.
As per the existing guidelines on CSR issued by the Department of Public Enterprises (DPE) in April, 2010, all profit making Central Public Sector Enterprises (CPSEs), including Maharatna CPSEs are required to select CSR activities which are aligned with their Business strategy and to undertake them in a project mode. All profit making CPSEs are required to allocate budget mandatory through a Board Resolution as percentage of net profit (previous year) in the following manner:
Type of CPSEs : Expenditure range for CSR in a Financial Year(% of profit)
Net Profit (Previous Year)
(i) Less than Rs. 100 crore
3% – 5%
(ii) Rs.100 crore to Rs. 500 crore
2% – 3%
(Subject to a Minimum of Rs. 3 crore)
(iii)Rs.500 crore and above
0.5% – 2%
So lets discuss some questions related to this article which can be asked in the upcoming exams :
1. What is the amount spent as CSR for 2014-15 by PSUs ?
2. How many PSUs have been spent over rs. 2447.59 Cr. as CSR in 2014-15 ?
3. Expand the term CSR, CPSEs & PSUs ?
Courtesy : PTI News