This document summarizes the Indian government's policy regarding Corporate Social Responsibility (CSR) funds for Central Public Sector Undertakings (CPSUs). Specifically, it addresses Lok Sabha Unstarred Question No. 3494, dated August 11, 2025, concerning the "Theme" approach for CSR fund allocation.
The policy dictates that CSR activities of corporations, including CPSEs, are governed by Section 135 of the Companies Act, 2013. Since the financial year 2018-19, the Department of Public Enterprises (DPE) has been issuing guidelines to administrative Ministries and CPSEs, encouraging a theme-based approach to CSR expenditure, focusing on national priorities. These guidelines suggest that approximately 60% of a CPSE's annual CSR expenditure should be allocated to the designated thematic programs, with preference given to aspirational districts identified by NITI Aayog.
The CSR Committee of the Board of CSR eligible companies, including CPSEs, is responsible for formulating and recommending the CSR policy to the Board, monitoring its implementation, establishing guiding principles for project selection and execution, and creating an annual action plan.
As of August 11, 2025, the annual theme for CSR activities of CPSEs for the financial year 2025-26 had not yet been notified by the DPE. Therefore, specific information regarding thematic areas or the quantum of CSR funds earmarked by the Gas Authority of India Limited (GAIL) under such a theme is not available.
Key Entities Referenced
Central Public Sector Undertakings: Government-owned enterprises in India, also referred to as CPSUs or CPSEs, that are subject to CSR guidelines.
Corporate Social Responsibility: CSR refers to corporate initiatives to assess and take responsibility for the company's effects on environmental and social wellbeing. In this context, it pertains to the funds allocated by CPSUs for social and environmental projects.
Companies Act, 2013: An Act of the Parliament of India that regulates Indian companies on matters such as incorporation, director responsibilities, and CSR.
Department of Public Enterprises: A department of the Indian government responsible for issuing guidelines related to the utilization of CSR funds by CPSEs.
NITI Aayog: The National Institution for Transforming India, a policy think tank of the Government of India. It identifies aspirational districts for focused CSR expenditure.
Gas Authority of India Limited: A Maharatna Public Sector Undertaking (PSU) of the Government of India.
Ministry of Corporate Affairs: A ministry in the Government of India responsible for administering the Companies Act 2013 and other laws related to corporations.
Shri Jai Prakash: A member of Lok Sabha who raised a question about the CSR funds of Central Public Sector Undertakings.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 3494
Monday, August 11, 2025/Sravana 20, 1947 (Saka)
'THEME'—A TOUCHSTONE FOR CENTRAL PUBLIC SECTOR UNDERTAKINGS
QUESTION
3494. Shri Jai Prakash:
Will the Minister of CORPORATE AFFAIRS be pleased to state:
(a) the details of the 'Theme' – a touchstone set by the Government for the Central
Public Sector Undertakings (CPSUs) for the purpose of releasing their Corporate Social
Responsibility (CSR) Funds for the current financial year;
(b) whether the Government has announced its theme to be followed by the CPSUs and
if so, the details thereof;
(c) whether the Government has any authority or say over releasing CSR Funds under
the concerned CPSUs;
(d) if so, the details thereof; and
(e) the quantum of CSR Funds earmarked by the Gas Authority of India Limited (GAIL)
under this Thematic Area for the current year?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND MINISTER OF
STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS
[SHRI HARSH MALHOTRA]
(a) & (b): CSR activities of corporates including Central Public Sector Enterprises
(CPSEs) are governed as per Section 135 of Companies Act, 2013. Based on the
recommendations that emerged from the CPSEs Conclave held in April, 2018 related to
utilization of CSR funds in a focused manner towards national priorities by adopting a
theme-based approach every year, Department of Public Enterprises (DPE) has been
issuing guidelines from the financial year 2018-19 to all administrative Ministries and
CPSEs for adopting a theme-based focused approach every year on CSR expenditure
by the CPSEs. These instructions, inter-alia, provide that CSR expenditure for such
thematic programmes should be around 60% of annual CSR expenditure of CPSEs and
the aspirational districts as identified by NITI Aayog may be given preference in CSR
expenditure. Annual theme for CSR activities of CPSEs for FY 2025-26 has not been
notified so far.
(c) & (d): In terms of provisions of Section 135 of Companies Act, 2013, CSR Committee
Contd…2/--2-
of the Board of CSR eligible companies including CPSEs shall inter alia formulate and
recommend the CSR policy to the Board and monitor the CSR policy of the company
from time to time. These provisions also provide that CSR policy includes guiding
principles for selection, implementation and monitoring of activities as well as
formulation of annual action plan and the manner of execution of such projects or
programmes.
(e): As the thematic area for the current financial year has not been notified by DPE as
yet, the question does not arise.
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