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Despite losses, Tata Motors continues CSR projects; Spends Rs 23 Cr in 2019-20

csr

New Delhi, 30 September 2020: Tata Motors has spent Rs 22.91 Cr on its Corporate Social Responsibility (CSR) in 2019-20 despite incurring an average annual loss of around Rs 600 Cr over the past three years.

"An amount of Rs 22.91 Crore was spent towards various schemes of CSR. The prescribed CSR expenditure required to be spent in FY 2019-20 as per the Companies Act 2013 is Nil, in view of net profit of the Company being negative under Section 198 of the Act," said the company which is world’s leading automobile manufacturer of cars, utility vehicles, buses, trucks and defense vehicles.

As per the company officials, the company recorded an average loss of Rs 600.07 crores in the last three financial years.

 The CSR committee at the company is headed by Om Prakash Bhatt.

Last year (2018-19) also, the company had spent more than Rs 22 Crore towards various CSR schemes. That, despite the average loss over Rs 1,496 Crore.

Part of the USD 100 billion Tata group, Tata Motors’s CSR efforts are directed towards addressing some of India’s major challenges in the field of Health (Aarogya),Education (Vidyadhanam), Employability (Kaushalya) and Environment (Vasudhara).

According to the company, its CSR projects positively impacted over 8.3lakh lives in the year 2019-20.

Tata Motors’ six-pronged CSR strategy balances; the needs and aspirations of the community, Sustainable Development Goal agenda and the National priority need through its common minimum programmes. The human life cycle approach advocates interventions right from, the prenatal care to education, across the spectrum - right from high-school level to professional courses, leading to employability and employment, thus catering domains, starting from community engagement, to social upliftment and environmental transformation, the company says.

Major Areas for CSR at Tata Motors:

SNCSR Area and ProjectTotal Spent
1Employability Enhancing Skill Development: Skill Development and vocational skills in Automotive and Non-Automotive Sector5.63
2Promotion of Education: Promoting primary and secondary education in Rural and Socially/ Economically Backward communities9.59
3Eradicating Hunger, Promoting preventive healthcare, Malnutrition, sanitation and safe drinking water: Preventive and curative health services in Communities5.59


As reflected in the table above, the company has accorded highest priority to education in its CSR initiatives. Some of company’s key CSR programmes related to education is listed below:

Special Coaching Classes & IIT JEE Coaching

Pre-Metric Classes are a series of free supplementary tutorials that are given to  underprivileged students (who cannot afford additional tuition fee) for various subjects like English, Math and Science.

The company runs special coaching classes in partnership with two NGO partners namely Swami Vivekanand Youth Movement and Vidya Poshak in Dharwad.  These are series of free

supplementary tutorials given to underprivileged students of class 8-10 (who cannot afford additional tuition fee) for subjects like English, Math and Science. Further, the brightest of the minds are prepared to crack competitive entrance exams (by Vidya Poshak).

Another such programme is run across 191 Bombay Municipal Schools covering over 24000 students. The programme is run in association with Global Education Trust.  A similar activity is also run in Jamshedpur where the company has multiple factories and workshops.

Financial Aid Programme

Financial Aid Programme (FAP) is a joint initiative between Tata Motors and Alumini Association of the Indian Institute of Technology. Together we have created a revolving fund to support needy and meritorious engineering candidates IIM- Bombay & IIT Gandhinangar. Students from vulnerable families are screened, selected and supported till they finish their engineering. They also receive mentorship from the senior leadership of Tata Motors. Once the students graduate and find jobs, they voluntarily contribute to this revolving fund. This project crossed its threshold of self sufficiency last year with over 10% of pass outs contribute to the corpus.

IIT JEE Coaching

Tata Motors - Avanti, Jawahar Navoldaya Vidyalaya (JNV) IIT-JEEcoaching Program helps students from rural areas and also those financially underprivileged background, by creating opportunities for students interested in Science and Mathematics to qualify some of the world’s most difficult selection tests- JEE and NEET entrance exams for IIT and Medicine.

Leap programme

Learn, Earn and Progress (LEAP) programme our flagship skilling programmes that trains the youth in auto technician trade. Run in a Public-Private-Partnership mode across 15 States, the programme trains over 4000 school dropout youth in over 60 member Industrial Training Institutes who are members of our NGO partner of Skills for Progress (SKIP). The one-year training comprises 9 months of on the job training at Tata Motors dealership and authorised service stations where they receive market competitive stipend. Students are evaluated through a rigorous assessment by ASDC that has led to over 85% of the youth finding job post completion of training. The course gained popularity and the number of admissions shot to 1500% in 4 years’ time and many are preferring it over conventional vocational training programmes.

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