New Delhi, 2 December 2020: Cummins India has spent almost double of its mandated corporate social responsibility budget for the financial year 2019-20. The company has spent Rs 32.57 crore against the mandated Rs 17.23 crore on various CSR projects. Addressing the social, civic and environmental issues, the company made significant contributions with projects on education, rural development, watershed management, afforestation, solid waste management, scholarship program, Cummins Powers Women and Monsoon Resilient Maharashtra.
Cummins in India designs, manufactures, distributes and services diesel and alternative fuel engines as well as related components and technology. The average net profit of the company for the past three financial years stood at Rs 861.44 crore. Accordingly, the prescribed CSR budget of the company was calculated as Rs 17.23 crore. The prescribed CSR budget of a company is calculated as 2% of the average net profit of the past three years. The company, however, spent Rs 32.57 crore on various social, civic and environmental issues under its CSR activities which was around 90% more than its mandated CSR budget.
The CSR initiatives of the Company are predominantly implemented through Cummins India Foundation. Incorporated in 1990, the Foundation is a Public Charitable Trust registered under the Bombay Public Trusts Act, 1950.
The CSR committee of the company is led by PS Dasgupta, who was appointed as the Chairperson of the Committee from June 17, 2020.
Areas in which the CSR fund was spent by the company in 2019-20
| Projects |
Amount spent (in Rs Cr) |
| Higher Education |
5. 99 |
| Energy & Environment |
7.36 |
| Equality of Opportunity |
10.83 |
| Strategic Initiative |
4. 92 |
| Administrative expenditure and overheads |
3.46 |
Key projects
The Company focuses its resources on three global priority areas: Higher education, Environment and Education, and Equality of Opportunity.
Higher education
Improving quality and alignment of educational systems to ensure students of today are ready for the workforce of tomorrow. Cummins provides a development platform for students through its various programs like Education Assistance to Socially and Economically Weaker Sections, Women Education and Employability supported by Cummins College of Engineering and Vocational Education- TEC.
Energy and Environment
With support of the local government bodies, skilled and experienced NGOs and academia, Cummins has worked actively in projects in the areas of afforestation, solid waste management, water conservation, air pollution and renewable energy.
Equality of Opportunity
Increasing opportunity and equity for those most in need — this focus area concentrates on capacity building and enhancement of communities around which Cummins’ operates. The company has continued its focused efforts and work towards scaling up the identified strategic projects namely Cummins Powers Women with Rise Up, Phaltan Model Town, Clean Air Delhi and Monsoon Resilient Maharashtra under the umbrella of its CSR projects.
New strategic projects
In addition to CSR activities, the Cummins India Limited is also actively involved in new strategic projects such as Cummins Powers Women, Clean Air Delhi, Monsoon Resilient Maharashtra and Phaltan Model Town under the CSR umbrella.
