New Delhi, 14 January 2022: The Indian multinational steel-making company Tata Steel Limited has spent around Rs 222 crore as part of its Corporate Social Responsibility (CSR) programmes in the financial year 2020-21. The company headquartered in Mumbai (Maharashtra) implemented its CSR projects primarily through the Tata Steel Foundation, which works in close collaboration with public systems and partners.
The average net profit of Tata Steel for the past three years as per Section 135(5) of the Companies Act, 2013 stood at Rs 9,492.35 crores. Accordingly, the prescribed CSR expenditure, calculated as 2% of the average net profit, was Rs 189.85 crore. However, the company spent as much as 17% more than its prescribed CSR budget with a total expenditure of Rs 221.98 crores on various activities. Thus, the excess amount spent for the financial year amounted to Rs 32.13 crores.
In the financial year 2020-21, the company’s signature CSR programmes were recognised as models of positive change addressing critical development issues at scale in school education, maternal and neonatal health, tribal identity and building of a multi-thematic corridor of well-being connecting its operational hubs in Jharkhand and Odisha. Tata Steel also focused on development imperatives of communities proximate to its operations especially indigenous tribal groups through multiple initiatives including enhancing household livelihoods, eliminating child labour, and empowering women, youth, and Persons with Disabilities.
Tata Steel’s CSR expenditure summary
- CSR amount spent against ongoing projects: Rs 87.34 crore
- CSR amount spent against other than ongoing projects: Rs 124.80 crore
- Amount spent on administrative overheads: Rs 9.84 crore
- Total amount spent for the financial year 2020-21: Rs 221.98 crore
- Total CSR obligation: Rs 189.85 crore
- Amount available for set-off in succeeding financial years: Rs 32.13 crore
There was no amount unspent for the year ended March 31, 2021 and the company did not propose to carry forward any amount spent beyond the statutory requirement.
As per the Companies Act, 2013, the amount required to be spent by Tata Steel on Corporate Social Responsibility (CSR) activities last year (2019-20), was Rs 173.53 crore. During the year ended March 31, 2021, the amount approved by the Board to be spent on CSR activities was Rs 270.17 crore. During the last financial year (2019-20), it was Rs. 272 crores.
Major Focus Areas of Tata Steel
Tata Steel’s CSR is in alignment with the Tata Group focus initiatives (Skills, Water, Governance, Education) focused on four thrust areas–education, health, livelihoods, and rural and urban infrastructure. Besides, it also undertook interventions in the areas of sports, disaster relief, environment and ethnicity etc., all aimed at improving the quality of life of the communities.
Education
- Setting up and running educational institutions and hostels
- Setting up and running mid-day meal kitchens
- Training of teachers and headmasters
Health
- Setting up and running clinics and hospitals
- Running mobile medical vans and ambulances
- Organizing health camps
Livelihoods
- Setting up and running skill development centres, industrial training centres, diploma and polytechnic institutes, community colleges, etc.
- Sponsoring candidates for skill development and vocational training programmes offered at identified institutions
- Coaching candidates to appear for entrance examinations of different institutions
“The objective of the company’s Corporate Social Responsibility (CSR) initiatives is to improve the quality of life of communities through long-term value creation for all stakeholders. The CSR team ensures that Tata Steel upholds the highest standards of human rights as part of rehabilitation and resettlement, both before and after project completion. During the last year, Tata Steel’s CSR programme reached more than 16 lakhs lives in the areas of health, access to drinking water, education, livelihood, sports and infrastructure development and most importantly, through the interventions to support the community to combat the COVID-19 pandemic”, states the annual report of the company.
Composition of Corporate Social Responsibility and Sustainability (CSR&S) Committee at Tata Steel
Deepak Kapoor is the Chairman of the committee. Other key members include O. P. Bhatt, T. V. Narendran, and Koushik Chatterjee. Tata Steel was awarded the Best Organisation Contributing in Sports through CSR at FICCI India Sports Awards 2020.
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