New Delhi, 20 December 2021: Public Sector Oil Companies (Oil PSUs) alone have been spending around 10 percent of the total Corporate social Responsibility (CSR) expenditure in India for the past three four years.
The fact was highlighted in Rajya Sabha when GVL Narasimha Rao, ruling party parliamentarian asked a question in this regard. He asked about the total expenditure incurred by different PSUs under Corporate social Responsibility (CSR) activities.
Responding to his question, Rameshwar Teli, Minister of State in the Ministry of Petroleum and Natural Gas said that the Public Sector Oil Companies have spent a total of Rs 5,582.34 crore under CSR in various parts of the country during the past three years (2018-19 to 2020-21). In the same duration, the country’s total CSR expenditure stood at Rs 53,667 crore. Therefore, the average CSR spent by the oil PSUs remained at around 10 percent for this period.
However, according to the detailed analysis of data from the year 2014-15 to 2019-20, it is found that Oil PSUs spent around 8 per cent of India’s total CSR expenditure.
CSR expenditure by Oil PSU from 2014-15 to 2019-20
These oil PSUs include HPCL, IOCL, ONGC, GAIL, BPCL, OIL, EIL, BL, NRL, MRPL and CPCL. Recently The CSR Universe reported that top 25 PSUs contribute around 17 per cent of total CSR expenditure happening in India. In this case, it appears that Oil PSUs are contributing significantly and adding huge values to the CSR segment of PSUs.
He further added that Public Sector Oil Companies have been earmarking 2% of their average Net Profits made during the three immediate preceding financial years as per Section 135 of the Companies Act and the CSR activities are undertaken under the heads identified under Schedule VII of the Companies Act 2013.
Rao asked another important question, whether the Ministry or PSUs concerned have undertaken any external evaluation and impact assessment of their CSR initiatives.
Responding to this Mr Teli said that Public Sector Oil Companies have been doing impact assessment exercises of some of their major CSR projects internally or through external agencies. However, as per changes made in the CSR rules by the Ministry of Corporate Affairs in January, 2021, it has been decided that impact assessment of CSR projects having outlays of one crore rupees or more, shall be undertaken through an independent agency.
