Home India Ministry of Coal Parliament Question: Spending of CSR Funds...
Date: 2025-07-23 Category: Not Applicable State: Union Government Country: India

Parliament Question: Spending of CSR Funds

Issued by Ministry of Coal · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This document presents the Ministry of Coal's response to Lok Sabha Starred Question No. 43 regarding the spending of Corporate Social Responsibility (CSR) funds by Public Sector Undertakings (PSUs) under the Ministry, specifically Coal India Limited (CIL) and NLC India Limited (NLCIL), over the last three years and the current year (2022-2026). It details fund allocation, spending in backward and Scheduled Caste dominated areas, and steps taken to ensure optimum CSR spending. The information was presented to the Lok Sabha on July 23, 2025. Key Points / Main Content: CSR Fund Allocation and Spending: - CIL and NLCIL have allocated CSR funds as per Section 135 of the Companies Act 2013 during the last three years (2022-2025) and the current year (2025-2026). - CIL's CSR budget requires subsidiaries to allocate at least 80% of their annual CSR budget within a 25 km radius of mining sites or project locations and the remaining 20% in the states of operation. CIL HQ can undertake projects anywhere in the country. - NLCIL allocates 2% of the average net profit of the preceding three years for CSR, spending 75% of these funds in local operating regions with an estimated 50-55% for the welfare of Backward and Scheduled Caste populations. Fund Allocation (Rs. in crore): - CIL and Subsidiaries: 2022-23 (441.62), 2023-24 (425.03), 2024-25 (700.72), 2025-26 (884.44 - Interim Budget) - NLCIL: 2022-23 (39.65), 2023-24 (40.27), 2024-25 (43.89), 2025-26 (43.54 - Interim Budget) CSR Activity and Beneficiaries: - CSR activities aim to benefit the entire population of the area, including Scheduled Castes and Backward Classes. - CIL prioritizes underprivileged people in project-affected areas and states of operation. - NLCIL focuses on the socioeconomic development of the whole society in project areas. Geographic Distribution: - CIL operates in West Bengal, Uttar Pradesh, Madhya Pradesh, Jharkhand, Chhattisgarh, Maharashtra, Assam, and Odisha, all with sizeable backward populations. - NCL operates mines in Uttar Pradesh, specifically in the Sonbhadra district, directing the majority of its CSR expenditure to communities in and around that region. Headwise Expenditure (CIL and Subsidiaries): - Healthcare, Sanitation: Significant allocation across all years. - Education, Skilling: Substantial investment. - Livelihood Rural Development: Consistent funding. - Environmental Sustainability, Promotion of Sports, Others: Lesser allocation. Headwise Expenditure (NLCIL): - Predominantly focused on Health Care and Sanitation, Education including special vocational skills. State wise expenditure (CIL and Subsidiaries): - Predominantly focused on Odisha, Madhya Pradesh and Jharkhand. State wise expenditure (NLCIL): - Predominantly focused on Tamil Nadu. Impact Analysis: CIL Subsidiaries: Impact: Required to allocate CSR funds as per CIL's policy, with a focus on areas near mining sites. Action Required: Adhere to the 80/20 allocation rule (80% within 25 km radius, 20% in states of operation) and implement CSR projects accordingly. Coal India Limited (HQ): Impact: Responsible for CSR projects across the country, ensuring resource allocation across multiple states and thematic priorities. Action Required: Strategically allocate resources for CSR projects nationwide, focusing on diverse thematic priorities. NLC India Limited (NLCIL): Impact: Required to allocate 2% of average net profit for CSR, focusing on local operating regions and the welfare of Backward and Scheduled Caste populations. Action Required: Allocate CSR funds as per the 2% rule, prioritize local area spending (75%), and target Backward and Scheduled Caste populations (50-55%). Communities in Mining Areas: Impact: Primary beneficiaries of CSR activities aimed at socioeconomic upliftment, especially in project-affected areas. Action Required: Engage with CIL and NLCIL to ensure CSR projects address their specific needs and contribute to their well-being. Backward and Scheduled Caste Populations: Impact: Targeted beneficiaries of CSR funds, particularly in areas surrounding NLCIL operations and within CIL's operational states. Action Required: Participate in CSR initiatives and provide feedback to ensure the projects effectively address their needs. Uttar Pradesh (Specifically Sonbhadra District): Impact: Receives a significant portion of NCL's CSR expenditure due to mining operations in the Sonbhadra district. Action Required: Collaborate with NCL to identify and implement CSR projects that align with the district's development priorities.

Key Entities Referenced

Corporate Social Responsibility CSR: A type of international private business self-regulation that aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically oriented practices. Coal India Limited CIL: A Public Sector Undertaking (PSU) under the Ministry of Coal, involved in coal production and related activities. NLC India Limited NLCIL: A Public Sector Undertaking (PSU) under the Ministry of Coal, involved in lignite mining and power generation. Companies Act 2013: An Act of the Parliament of India which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company. Uttar Pradesh: A state in Northern India where Northern Coalfields Limited (NCL) operates mines in Sonbhadra district. Madhya Pradesh: A state in Central India where Coal India Limited HQ is empowered to undertake CSR projects. Sonbhadra district, Uttar Pradesh: A district in Uttar Pradesh where Northern Coalfields Limited (NCL) mines are located and the primary beneficiary of NCL's CSR expenditure. Lok Sabha: The lower house of the Parliament of India where starred question No 43 regarding spending of CSR Funds, has been raised.
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GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA STARRED QUESTION NO †*43 TO BE ANSWERED ON 23.07.2025 Spending of CSR Funds †*43. Shri Arun Kumar Sagar: Will the Minister of Coal be pleased to state: (a) whether various Public Sector Undertakings under this Ministry have allocated funds under Corporate Social Responsibility (CSR) during the last three years and the current year; (b) if so, the details of these funds spent, particularly in the Backward and Scheduled Caste dominated areas of the country along with the number of people benefitted therefrom during the said period, Undertaking, Head and Area-wise; (c) whether effective steps have been taken to ensure optimum spending under CSR across the country particularly in the Backward and Scheduled Caste dominated areas; (d) if so, whether the Scheduled Caste dominated areas of the country particularly Shahjahanpur Lok Sabha Constituency in Uttar Pradesh has been covered under the same; and (e) if so, the details thereof? ANSWER MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY) (a) to (e): A statement is laid on the Table of the House. ***** 1STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (E) OF THE LOK SABHA STARRED QUESTION NO. †*43 ANSWERED ON 23.07.2025 ASKED BY SHRI ARUN KUMAR SAGAR, HON’BLE MP REGARDING “SPENDING OF CSR FUNDS” (a): Coal India Limited (CIL) and NLC India Limited (NLCIL), Public Sector Undertakings (PSUs) under the Ministry of Coal have allocated funds under CSR during each of the last three years and the current year, as per the norms prescribed in Section 135 of Companies Act 2013. The details of CSR funds allocated during the last three years and the current year are given below: Financial Year CIL and Subsidiaries (Rs. in crore) NLCIL (Rs. in crore) 2022-23 441.62 39.65 2023-24 425.03 40.27 2024-25 700.72 43.89 2025-26 884.44 43.54 (Interim Budget) (b) & (c): As per the CSR policy of CIL, subsidiaries are required to allocate at least 80% of their annual CSR budget within a 25 kilometer radius of their mining sites or project locations and rest 20% in the state(s) of operation. Coal India Limited (HQ) is empowered to undertake CSR projects anywhere in the country, but must allocate its resources across multiple states and thematic priorities. The nature of CSR activities is such that they benefit the whole population of the area by creating enabling conditions for their socio-economic upliftment, which includes Scheduled Castes and Backward classes. CIL through its CSR policy has ensured that the underprivileged people in project affected areas and in the states of operation are primary beneficiaries of CSR activities. All the 8 operational states of CIL i.e West Bengal, Uttar Pradesh, Madhya Pradesh, Jharkhand, Chhattisgarh, Maharashtra, Assam and Odisha have sizeable backward population. NLCIL allocates 2% of the average net profit of preceding three years for CSR every year and undertakes CSR activities under various items of Schedule VII of Companies Act 2013. NLCIL spends 75% of CSR funds in the local area (operating regions). An estimated 50–55% of the total CSR budget is spent for the welfare of Backward and Scheduled Caste populations in surrounding villages/regions of NLCIL. The CSR projects are undertaken for socio-economic development of the whole society where the project is executed. Hence, the exact number of people benefitting from the project cannot be ascertained. 2The undertaking-wise details of quantum of funds spent during last 3 years and the current financial year are as under: Undertaking CSR Funds Spent (Rs. in crore) FY 22-23 FY 23-24 FY 24-25 FY 25-26 (till June 2025) ECL 6.92 7.32 4.41 0.54 BCCL 11.42 7.77 22.15 0 CCL 36.12 61.92 81.11 10.27 MCL 207.97 162.90 228.08 43.97 NCL 133.64 157.87 192.19 17.48 SECL 59.28 53.07 50.14 1.05 WCL 11.62 13.97 52.51 0.07 CMPDIL 8.92 8.81 9.33 0.26 CIL 42.04 98.55 95.73 55.28 NLCIL 43.07 47.36 47.19 3.77 TOTAL 561.00 619.54 782.84 132.69 Details of head-wise and area- wise funds spent are placed at Annexure-A (d) & (e): In Uttar Pradesh, only Northern Coalfields Limited (NCL) operates mines, all of which are located in Sonbhadra district; consequently, the great majority of NCL’s CSR expenditure is necessarily directed to communities in and around Sonbhadra, with the residual amount being shared across its wider footprint in both Uttar Pradesh and Madhya Pradesh. *** 3Annexure-A Annexure referred to in parts (b) & (c) of the Statement on reply to the Lok Sabha Starred Question No. †*43 to be answered on 23.07.2025 1. Head-wise funds spent by CIL and its subsidiaries Head CSR Funds Spent (Rs. in crore) FY 22- FY 23- FY 24- FY 25-26 (till Total 23 24 25 June 2025) Healthcare, Sanitation & 203.73 251.04 332.31 58.25 845.33 Nutrition Education, Skilling & 144.46 124.53 246.15 38.71 553.85 Livelihood Rural Development 110.12 116.69 82.63 16.27 325.71 Environmental 19.20 22.68 31.31 1.23 74.42 Sustainability Promotion of Sports 29.56 32.29 7.63 2.61 72.09 Others 10.86 24.95 35.62 11.85 83.28 TOTAL 517.93 572.18 735.65 128.92 1954.68 2. Area (State) wise funds spent by CIL and its subsidiaries CSR Funds Spent (Rs. in crore) FY 25-26 S. No. State/UT FY 22-23 FY 23-24 FY 24-25 (till June TOTAL 2025) 1 Assam 1.51 3.40 3.87 0.53 9.31 2 Chhattisgarh 51.70 37.18 29.04 1.05 118.97 3 Jharkhand 58.43 86.26 116.97 15.50 277.16 4 Madhya Pradesh 109.50 145.91 145.86 13.13 414.4 5 Maharashtra 13.57 13.91 59.11 13.64 100.23 6 Odisha 209.61 164.51 223.08 43.97 641.17 7 Uttar Pradesh 36.43 52.58 69.41 8.19 166.61 8 West Bengal 14.21 30.44 13.17 5.39 63.21 TOTAL (States of 494.96 534.19 660.51 101.40 1,791.06 Operation) 9 Andhra Pradesh 0.17 0.12 3.88 1.83 6.00 4CSR Funds Spent (Rs. in crore) FY 25-26 S. No. State/UT FY 22-23 FY 23-24 FY 24-25 (till June TOTAL 2025) 10 Arunachal 0.62 0.03 0.00 0.00 0.65 Pradesh 11 Bihar 0.03 0.46 1.41 0.15 2.05 12 Delhi 0.10 0.00 0.22 1.20 1.52 13 Gujarat 0.78 1.48 7.96 0.91 11.13 14 Haryana 0.65 0.55 0.06 0.00 1.26 15 Himachal 1.16 0.00 0.00 0.73 1.89 Pradesh 16 Jammu & 0.00 0.00 0.00 0.00 0 Kashmir 17 Karnataka 0.83 14.20 4.20 1.57 20.8 18 Kerala 0.81 0.00 0.00 0.00 0.81 19 Ladakh 0.18 1.95 4.15 2.38 8.66 20 Manipur 0.20 0.17 0.00 0.00 0.37 21 Mizoram 0.00 0.70 0.08 0.00 0.78 22 Meghalaya 0.00 0.00 0.00 0.00 0 23 Rajasthan 0.00 0.37 0.88 1.39 2.64 24 Sikkim 0.00 0.24 0.31 0.00 0.55 25 Tamil Nadu 0.00 0.35 1.52 0.00 1.87 26 Telangana 0.63 0.00 0.44 2.52 3.59 27 Tripura 0.00 0.00 0.00 0.00 0 28 Uttarakhand 3.68 0.00 2.90 6.65 13.23 29 PAN India Projects + Admin & Other Exp. + 13.13 17.37 47.13 8.19 85.82 Depository works TOTAL (Other 22.97 37.99 75.14 27.52 163.62 States) 5CSR Funds Spent (Rs. in crore) FY 25-26 S. No. State/UT FY 22-23 FY 23-24 FY 24-25 (till June TOTAL 2025) TOTAL (All 517.93 572.18 735.65 128.92 1954.68 States) 3. Head-wise funds spent by NLCIL Sl. CSR Focus Area (Schedule VII CSR Funds Spent (Rs. in crore) No. Items) 2022–23 2023–24 2024–25 2025–26 (up to June 25) 1 Health Care and Sanitation 13.48 11.21 18.16 3.31 3 Providing Safe Drinking Water – 19.24 12.10 0.06 4 Education (including 24.87 10.63 9.15 0.01 special/vocational skills) 5 Women Empowerment/Gender – 1.20 – – Equality 6 Environmental Sustainability – 0.14 0.93 – 7 Promoting Sports in Rural Areas 0.53 0.46 – 0.04 8 Water Resource – – 0.28 0.33 Augmentation/Rural Development 9 Providing Link Roads 2.06 0.88 1.09 – 10 Heritage, Arts and Culture 0.02 1.54 3.14 – 11 Welfare of Armed Forces 0.05 0.05 0.15 – 12 Administrative Overheads 1.98 2.01 2.19 0.02 13 Disaster Management (Relief, 0.08 – – – Rehabilitation, Reconstruction) Total 43.07 47.36 47.19 3.77 4. Area (State) wise funds spent by NLCIL Sl. State CSR Funds Spent (Rs. in crore) No. FY 22-23 FY 23-24 FY 24-25 Total 1 Tamil Nadu 27.20 42.73 34.44 104.37 62 Rajasthan 2.92 2.73 5.71 11.35 3 Odissa 8.89 1.07 4.61 14.58 4 Kerala 0.35 0.14 0.54 1.03 5 Karnataka 1.43 0.19 1.71 3.34 6 New Delhi 0.37 0.08 0.15 0.60 7 West Bengal 1.38 0.00 0.00 1.38 8 Maharashtra 0.06 0.32 0.03 0.40 9 Telangana 0.03 0.07 0.00 0.10 10 Haryana 0.43 0.04 0.00 0.47 Total 43.07 47.36 47.19 137.63 *** 7

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