This document summarizes the Indian Ministry of Corporate Affairs' response to questions regarding potential changes to Corporate Social Responsibility (CSR) policies, as answered in Lok Sabha Unstarred Question No. 2479 on August 4, 2025.
Currently, Rule 8 of the Companies CSR Policy Rules, 2014 mandates impact assessments by independent agencies for companies with an average CSR obligation of ₹10 crore or more in the preceding three financial years, specifically for CSR projects with outlays of ₹1 crore or more that have been completed at least one year prior to the assessment. Companies are required to report details of their CSR activities, including impact assessments, in their Annual Report on CSR, which forms part of the Company's Board Report.
The Ministry clarified that there are no current plans to publish an annual CSR Outcomes Report in collaboration with NITI Aayog.
The government does not intend to mandate or recommend district-wise CSR planning frameworks to align corporate spending with local Sustainable Development Goal (SDG) priorities, nor does it propose to facilitate pooled CSR funds to address regional challenges. The Ministry emphasizes that Schedule VII of the Companies Act already provides a list of eligible CSR activities aligned with national priorities and SDGs, and these activities should be interpreted broadly. The government does not issue directives to corporations regarding specific areas or activities for their CSR spending.
Key Entities Referenced
Ministry of Corporate Affairs: The Indian government ministry responsible for regulating corporate affairs in India.
Shri Sribharat Mathukumilli: The Member of Parliament who posed the question regarding CSR projects.
Shri Harsh Malhotra: Minister of State in the Ministry of Corporate Affairs and Minister of State in the Ministry of Road Transport and Highways, who provided the answer to the question.
NITI Aayog: National Institution for Transforming India, a policy think tank of the Government of India.
Companies CSR Policy Rules, 2014: Rules pertaining to Corporate Social Responsibility (CSR) policies for companies in India.
Section 135 of the Act: A section of the Companies Act pertaining to Corporate Social Responsibility (CSR) obligations.
Schedule VII of the Act: A schedule of the Companies Act that lists eligible activities for Corporate Social Responsibility (CSR) spending.
Sustainable Development Goals (SDG): A collection of 17 interlinked global goals designed to be a "blueprint to achieve a better and more sustainable future for all".
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 2479
ANSWERED ON MONDAY, August 4, 2025/Sravana 13, 1947 (Saka)
THIRD PARTY IMPACT ASSESSMENT OF CSR PROJECTS
QUESTION
2479. Shri Sribharat Mathukumilli:
Will the Minister of CORPORATE AFFAIRS be pleased to state:
(a) whether the Government proposes to make third-party impact assessments or
social audits mandatory for all major CSR projects, regardless of company size or
threshold;
(b) whether the Government has any plans to publish an annual CSR Outcomes Report,
in collaboration with NITI Aayog, to assess developmental impact beyond financial
disclosures;
(c) whether the Government is considering to mandate or recommend district-wise CSR
planning frameworks to align corporate spending with local SDG priorities; and
(d) whether the Government proposes to facilitate pooled CSR funds to address
regional challenges such as groundwater depletion, tribal education or climate
resilience;
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) Rule 8 of the Companies (CSR Policy) Rules, 2014 contains provisions related
to impact assessment of CSR projects which state that every company having average
CSR obligation of 10 crore rupees or more in pursuance of sub-section (5) of section
135 of the Act, in the three immediately preceding financial years, shall undertake
impact assessment, through an independent agency, of their CSR projects having
outlays of one crore rupees or more, and which have been completed not less than one
year before undertaking the impact study. The details of CSR activities, Impact
Assessment etc. are required to be reported by the companies in the ‘Annual Report on
CSR’ including an annual action plan on CSR which is part of the Company’s Board
Report. There is no such plan to publish an annual CSR Outcomes Report, in
collaboration with NITI Aayog, to assess developmental impact beyond financial
disclosures.
(c) & (d) No, Sir. Schedule VII of the Act indicates the list of eligible activities which
can be undertaken by the companies as CSR. The activities mentioned under Schedule
VII are broadly aligned with national priorities to promote inclusive and sustainable
development which are already aligned with SDG goals. Further, entries in Schedule VII
are broad based and may be interpreted liberally so as to capture the essence of the
subjects enumerated therein. The Government does not issue any directions to
Corporates to spend in any particular area or activity.
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