**Executive Summary**
This document presents the answer to Unstarred Question No. 1876 in Lok Sabha, concerning CSR funds for social upliftment in backward areas. The response provided by the Minister of State in the Ministry of Petroleum and Natural Gas clarifies the regulatory framework for CSR spending by Oil & Gas PSUs as mandated by Section 135 of the Companies Act 2013. The question was set to be answered on December 11th, 2025.
**Key Points / Main Content**
* **CSR Mandate (Companies Act 2013):**
* Section 135 mandates companies meeting specific financial criteria (net worth of Rs. 500 crore or more, turnover of Rs 1000 crore or more, or net profit of Rs 5 crore or more) to spend at least 2% of the average net profits of the company towards CSR.
* **CSR Expenditure of Oil & Gas PSUs:**
* CSR expenditure is directed towards various areas, including socially, economically, and educationally backward areas across the country.
* **Information Availability:**
* Details of State & District-wise CSR expenditure and CSR projects/activities undertaken by major oil and gas PSUs are available on their respective websites (e.g., www.ongcindia.com, www.iocl.com, www.bharatpetroleum.com, www.hindustanpetroleum.com, www.gailonline.com, www.oil-india.com).
* **Nature of CSR Projects:**
* CSR projects are undertaken for the socio-economic development of the area and society where the project is executed. Beneficiary-wise details are not captured due to the wide range of CSR activities.
* **CSR Governance:**
* CSR is a Board-driven process, empowering the Board of the company to plan, decide, execute, and monitor CSR activities based on the recommendation of its CSR Committee.
* **Government Directives:**
* The Government does not issue specific directives to companies regarding spending in any particular geographical area or activity.
* Spending is guided by provisions specified under section 135 of the Companies Act 2013, Guidelines on CSR expenditure issued by Department of Public Enterprises (DPE), Ministry of Finance, and CSR policy of Company.
**Impact Analysis**
**Oil & Gas PSUs**
* **Impact:** Must adhere to Section 135 of the Companies Act 2013, guidelines on CSR expenditure issued by the DPE and their CSR policy.
* **Action Required:** Ensure that CSR spending aligns with the regulatory framework and company policy, plan and execute projects contributing to social and economic development, and disclose relevant details on their websites.
**Backward Areas**
* **Impact:** Beneficiaries of CSR projects undertaken by Oil & Gas PSUs.
* **Action Required:** Access and use the information available through the relevant websites to find the relevant projects.
**CSR Committee of Companies**
* **Impact:** Responsible for recommending CSR activities and monitoring the implementation
* **Action Required:** Ensure planning aligns with regulatory framework and recommendations are aligned with CSR Policy.
Key Entities Referenced
Section 135 of the Companies Act 2013: Mandates companies meeting certain financial thresholds to spend on Corporate Social Responsibility (CSR) activities.
Corporate Social Responsibility (CSR): Policy requiring companies to allocate funds for social upliftment, especially in backward areas.
Ministry of Petroleum and Natural Gas: The ministry responsible for matters related to petroleum and natural gas, including CSR activities of oil PSUs.
Department of Public Enterprises (DPE): Issues guidelines on CSR expenditure.
Uttar Pradesh: Specific location referenced for details on beneficiaries in backward areas.
LOK SABHA
UNSTARRED QUESTION NO - 1876
TO BE ANSWERED ON –11th DECEMBER 2025
CSR Funds for Social Upliftment in Backward Areas
†1876. Shri Arun Kumar Sagar:
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state: -
(a) whether the Oil PSUs under the Government have allocated funds under Corporate Social
Responsibility (CSR) for social upliftment in backward areas;
(b) if so, the details thereof and the names of the oil PSUs under the Ministry which have allocated
funds under CSR for social upliftment especially in the scheduled castes and backward castes areas
during the last three years, year-wise and district-wise;
(c) the details and number of persons benefitted particularly in the scheduled castes and backward
castes areas of Uttar Pradesh during the said period, State-wise and year-wise; and
(d) whether the Government has taken any steps for proper utilisation and expenditure of these funds, if
so, the details thereof?
ANSWER
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ालय म(cid:336) रा(cid:475)मं(cid:361)ी
((cid:373)ी सुरेश गोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI SURESH GOPI)
(a) to (d): Section 135 of the Companies Act 2013 mandates every company having net worth of Rs.
500 crore or more, or turnover of Rs 1000 crore or more, or net profit of Rs 5 crore or more during
the immediately preceding financial year, to spend at least 2 percent of the average net profits of
the company made over immediately preceding three financial years towards CSR as per the CSR
policy of company. CSR expenditure of Oil & Gas PSUs is made across areas or regions including
socially, economically and educationally backward areas (aspirational districts) of the country.
Details of the State & District-wise CSR expenditure, CSR projects /activities undertaken by the
major oil and gas PSUs are available on their respective websites i.e. www.ongcindia.com,
www.iocl.com, www.bharatpetroleum.com, www.hindustanpetroleum.com, www.gailonline.com,
www. oil-india.com. The CSR projects are undertaken for socio-economic development of area
and society where the project is executed. As CSR activities cover wide range of area, beneficiary-
wise details are not captured. CSR is a Board-driven process and the Board of the company is
empowered to plan, decide, execute and monitor the CSR activities of the company based on the
recommendation of its CSR Committee. The Government does not issue specific directives to
companies regarding spending in any particular geographical area or activity other than criteria for
spending the CSR funds which are guided by provisions specified under section 135 of Companies
act 2013, Guidelines on CSR expenditure issued by Department of Public Enterprises (DPE),
Ministry of Finance and CSR policy of Company.
******