In response to Lok Sabha Unstarred Question No. 3443, the Ministry of Finance clarified the eligibility conditions for receiving CSR (Corporate Social Responsibility) funds from Central Public Sector Enterprises (CPSEs). The question raised concerns about stringent eligibility requirements, such as the need for AAA ratings, which allegedly restrict access to CSR funds and lead to their utilization predominantly in constituencies of Union Ministers and ruling party members.
The Minister of State for Finance, Shri Pankaj Chaudhary, explained that CSR activities of CPSEs are governed under Section 135 of the Companies Act, 2013. As per the law, the CSR Committee of the Board is responsible for formulating and recommending the CSR policy to the Board. This includes laying down guiding principles for selecting, implementing, and monitoring CSR activities. Additionally, the CSR policy requires an annual action plan detailing the manner of execution of projects or programs. The response, however, did not directly address the query regarding specific eligibility criteria, such as AAA ratings, or the alleged regional bias in CSR fund allocation.
This clarification highlights that the legal framework under Section 135 mandates CPSEs to implement and monitor CSR projects based on the Board-approved policy, ensuring compliance with statutory guidelines. However, further specifics on eligibility conditions and fund distribution remain unaddressed.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF PUBLIC ENTERPRISES
*****
LOK SABHA
UNSTARRED QUESTION NO. 3443
TO BE ANSWERED ON THE 16th DECEMBER, 2024
Eligibility Condition for Getting CSR Funds
3443. Dr. T Sumathy Alias Thamizhachi Thangapandian:
Thiru D M Kathir Anand:
Will the Minister of FINANCE be pleased to state:
a. whether the CPSUs have imposed very strict eligibility conditions to comply with such as AAA Ratings for getting CSR funds from such CPSUs and as a result only few have access to CSR funds and most of the CSR funds are being utilised only in constituencies of Union Ministers and Members of the ruling dispensation; and
b. if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) and (b) : Corporate Social Responsibility (CSR) activities of corporates including Central Public Sector Enterprises (CPSEs), are governed in terms of provisions of Section 135 of Companies Act, 2013. In terms of these provisions, CSR Committee of the Board 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.
A Government University wants to become eligible for getting CSR funds, since it is a public charitable Trust. Is there any particular format for the application? Who’s is the approving authority for this purpose. Please note it is a certification of the amount spent by a a company.