PSU CSR Funding increases 67% in FY2015-16

The corporate social responsibility (CSR) funding of central public sector units has increased by 67 per cent in FY2015-16.

As per government report, an amount of Rs. 4,101 crore has been incurred by 106 central public sector undertakings during FY2015-16 for undertaking CSR activities/projects vis-a-vis Rs 2,450 crore has been incurred by 120 central public sector undertakings during FY2014-15.

According to provisions on corporate social responsibility of the Companies Act, 2013, all companies, including CPSEs fulfilling threshold limits are required to spend at least 2 per cent of their average net profit made during the three preceding years to undertake CSR activities/projects as listed in Schedule-VII to the Companies Act, 2013.

As per first proviso of Section 135 (5) of Companies Act, 2013, central public sector undertakings shall give preference to the local area and areas around it where they operate for spending the amount earmarked for CSR activities. However, CPSEs may decide to undertake CSR activities in any part of the country, including backward, rural areas of the country.