Sunday, 17 March 2013



As per the existing guidelines on Corporate Social Responsibility (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. Giving this information in written reply to a question in Lok Sabha the Minister of Heavy Industries and Public Enterprises, Shri Praful Patel, said that CPSEs are mandated to spend their funds on CSR projects selected by them with the approval of their respective Boards. All profit making CPSEs are required to allocate budget mandatorily through a Board Resolution as percentage of net profit (previous year) in the following manner:

Type of CPSEs Net Profit (Previous Year)
Expenditure range for CSR in a Financial Year
(% of profit)
(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%

Shri Patel informed the House that the loss making CPSEs are not mandated to earmark specific funding for CSR activities. CSR Budget is fixed for each financial year and this fund does not lapse. It is transferred to a CSR funds in which it accumulates. Implementation of CSR activities of CPSEs is monitored by the administrative Ministries/ Departments of concerned CPSEs. State/UT/PSU-wise information of CSR work undertaken by the CPSEs, including Maharatna CPSEs and the number of persons benefited there from, is not maintained centrally in the Department of Public Enterprises. CPSEs are free to take up CSR Projects for upliftment of weaker sections, and backward districts, the Minister said in his reply.

Source: Ministry of Heavy Industries & Public Enterprises

With Regards
CS Prakash Verma