Parliament Question: Allocation of CSR Funds by the PSUs

Executive Summary: This document is a response to Lok Sabha Unstarred Question No. 285 regarding the allocation of Corporate Social Responsibility (CSR) funds by Public Sector Undertakings (PSUs) under the Ministry of Steel. It details the funds allocated and spent by these PSUs over the last three years (2022-23, 2023-24, and 2024-25), the sectors in which these funds were utilized, and relevant government norms. The response was provided on 22.07.2025. Key Points / Main Content: CSR Allocation Norms: * As per Section 135 of the Companies Act, 2013, CPSEs under the Ministry of Steel must earmark at least 2% of the average net profits from the preceding three financial years for CSR activities. * Unspent CSR funds from the previous year are carried forward for utilization in the following year for the originally intended purpose. CSR Expenditure by CPSEs: * The document provides a table detailing CSR expenditure (in lakhs of rupees) for the financial years 2022-23, 2023-24, and 2024-25 for the following CPSEs: Steel Authority of India Ltd., Rashtriya Ispat Nigam Ltd., NMDC Ltd., MOIL Ltd., MECON Ltd., KIOCL Ltd., and MSTC Ltd. * Rashtriya Ispat Nigam Ltd. (RINL) did not allocate CSR funds during FY 2023-24 and 2024-25 due to financial losses. * KIOCL Ltd. aligned its CSR obligations for FY 2024-25 by utilizing provisions of Section 135, setting off excess CSR expenditure from previous years. CSR Activity Focus: * Thrust areas for CSR activities include education, health, women empowerment, sustainable income generation through Self Help Groups, assistance to Divyangs, and access to water and sanitation facilities. * The exact number of beneficiaries per location and expenditure head is not maintained, as CSR works benefit society at large. CSR Project Locations: * CSR projects are primarily carried out in the periphery of Steel Plants, Steel Townships, and Mines. * These areas are often inhabited by Scheduled Tribe, Scheduled Castes, and Backward populations. Impact Analysis: Ministry of Steel: Impact: The Ministry is responsible for overseeing the CSR activities of its PSUs and ensuring compliance with Section 135 of the Companies Act, 2013. Action Required: Monitor CSR spending by PSUs, particularly those with carried-over funds or those facing financial constraints, to ensure compliance with regulations. CPSEs under the Ministry of Steel: Impact: CPSEs are required to allocate and spend CSR funds in accordance with the 2% rule and the identified thrust areas. Financial performance directly impacts their ability to allocate CSR funds. Action Required: CPSEs must ensure proper allocation, utilization, and reporting of CSR funds, adhering to the guidelines and focusing on the identified thrust areas. CPSEs need to document the projects undertaken and ensure compliance. Beneficiaries of CSR Activities (e.g., local communities, disadvantaged groups): Impact: These groups benefit from the CSR projects focused on education, health, infrastructure, and other areas. Action Required: None specified in the document. However, continued engagement and needs assessment would ensure effective CSR project implementation.

Key Entities Referenced