3rd CIL CSR Conclave Begins In Kolkata, Celebrating A Decade of India’s CSR Legislation And CIL’s CSR Institutionalization
CIL has Spent Rs.5579 Crores on CSR in 10 years, 31% Higher than Statutory Obligation
Celebrating a decade of India’s CSR Legislation and Coal India’s CSR institutionalisation, the 3rd CIL CSR conclave began today in Kolkata. Inaugurating the Conclave, Dr. C V Ananda Bose, the Governor of West Bengal and the Chief Guest of the event, appreciated the CSR initiatives of Coal India Limited. Referring to the social commitment of CIL, Sh Bose said that “we are living in a transformational era and we have to see beyond the boundaries which is essential for building relationships”.
Under its Corporate Social Responsibility (CSR) umbrella CIL had spent Rs. 5,579 Crores in a decade, since CSR’s institutionalization, which is higher by 31 percent than the statutory requirement. CIL is among the top three corporates of the country in CSR spend.
Beginning FY 2015, the first year of statutorily mandated CSR, in a ten year span till FY 2024 CIL was mandated to spend Rs.4,265 Crores but the company was ahead of it by Rs. 1,314 Crores. The annual average CSR spend was Rs. 558 crores during this period.
Vikram Dev Dutt, Secretary, Ministry of Coal and the Guest of Honour said that CSR is an article of faith for CIL and its subsidiaries and beginning January there would be theme-based CSR every month. Speaking on the occasion, Shri P M Prasad, Chairman CIL added that CIL is committed to CSR activities and has spent Rs. 5,570 Crores on CSR during the last decade on pan India basis much of it focused on health and education.
CIL’s concentrated focus on health care, education and livelihood is reflected by the fact that, of the decade’s total CSR spend of Rs.5,579 Crores these three essentials accounted for 71% at Rs.3,978 Crores. Health care topped with Rs.2,770 Crores at close to 50% of the total outlay. Education and livelihood comprised Rs.1,208 Crores, over one-fifth of the total. The remaining amount was spread across rural development, and other themes like environmental sustainability, promotion of sports, disaster management etc.
95 percent of CSR funds were utilized in eight operational states, with a focus on Odisha, Chhattisgarh, Jharkhand, Madhya Pradesh, and Maharashtra.
In respect of fund allocation, as per the ‘Companies Act 2013’, CSR budget of CIL and its subsidiaries is earmarked at 2% of the average net profit (profit before tax, less dividend) of the three immediately preceding financial years or Rs. 2 per tonne of coal produced in the previous financial year, whichever is higher.
As per the policy, CIL’s subsidiaries may spend 80% of their CSR fund within 25 Km radius of their command areas and the rest 20% in the State where they operate. The apex body CIL is not restrained by such geographical barriers giving it a greater leeway to take up CSR projects on pan India basis.
Speaking at the event, Vinay Ranjan, Director (Personnel) of CIL said that CIL is the first CPSE in India to introduce community Development cadre in 2014 to have a microscopic focus on CSR.
