Department of Public Enterprises (DPE)
issued guidelines on Corporate Social Responsibility (CSR) for Central Public
Sector Enterprises (CPSEs) in April, 2010 and these Guidelines are applicable
only to the Central PSEs. As per these
Guidelines, the CPSEs may undertake projects/activities in the periphery where
company carries out its commercial activities, as far as possible. Where this is not possible or applicable, the
company may choose to locate CSR projects anywhere in the country. The CSR budget has to be mandatorily
allocated through a Board Resolution as a percentage of Net Profit (previous
year) in the following manner:
|
Type of CPSEs
Net Profit (Previous Year)
|
Expenditure range for CSR
in a Financial Year
(% of profit)
|
|
(i) Less
than Rs. 100 crore
|
3% - 5%
|
|
(ii) Rs.
100 crore to Rs. 500 crore
|
2% - 3%
(Subject to a Minimum of Rs. 3 crore)
|
|
(iii) Rs.
500 crore and above
|
0.5% - 2%
|
The
CSR Budget is to be fixed for each financial year and this fund does not
lapse. The unutilised funds in a
particular year have to be transferred to a CSR Fund, which will accumulate.
The
above information was given by the Minister for Heavy Industries & Public
Enterprises Shri Praful
Patel to the Parliament.
MC/sk