Health, nutrition common CSR theme among PSEs

Theme-based CSR

- In April 2018, Centre ad decided on CSR with a focus

- CPSEs take up Covid-related measures

- Setting up makeshift hospitals, temporary Covid care facilities

- In FY19, theme was school education and healthcare

New Delhi: 'Health and nutrition' will be the common theme for the corporate social responsibility (CSR) activities of public-sector enterprises (PSEs) for the current fiscal. The Department of Public-Sector Enterprises has informed all Central ministries and departments that the PSEs under theme should adhere to this decision, said official sources.

For 2021-22 too, the theme was similar: 'Health & Nutrition, with special focus on Covid-related measures including setting up makeshift hospitals and temporary Covid care facilities.'

In India, companies with a net worth of Rs500 crore (or more), turnover of Rs1,000 crore, or net profit of Rs5 crore are stipulated to spend at least two per cent of their average profit for the previous three years on CSR activities every year.

In April 2018, the government had decided that the utilization of CSR funds should be done in a focused manner, keeping in mind the national priorities at the time. Accordingly, a common theme would be adopted every year. For 2018-19, school education and healthcare were the theme.

CSR expenditure for thematic programme should be around 60 per cent of annual CSR expenditure of PSEs. It was also decided that Aspirational (that is, poor) Districts may be given preference. A list of 112 Aspirational Districts was prepared by the NlTl Aayog.

CSR spending by PSEs, however, has not been beyond reproach. An Assam Assembly committee had lamented last year that major PSEs, including Oil India, ONGC, IOC and Coal India, were not spending the mandatory 2 per cent of their annual profits on CSR activities in Assam, even though their production units were located in the state.

In its 2021 report, the Comptroller & Auditor General said, "out of 95 CPSEs (Central PSEs) reviewed, 29 CPSEs allocated funds towards CSR more than the prescribed minimum two per cent of average net profit of three immediate preceding financial years in pursuance of its CSR Policy and 60 CPSEs allocated the required minimum two per cent. While three CPSEs allocated less than two per cent, three other CPSEs did not allocate funds on account of negative net profit under Section 198 of Companies Act, 2013."