PSUs to focus CSR spending on Health & Nutrition’ in FY23

• According to the guidelines issued by the government on CSR spending by PSUs, central themes are selected for every financial year for directing CSR spending
• As per the Public Enterprises Survey, CSR expenditure of PSUs during 2020-21 stood at Rs 4,488 crore

New Delhi: The government has picked 'Health and Nutrition' as the theme for Corporate Social Responsibility (CSR) spending by PSUs in FY23, a notification released by the Department of Public Enterprises (DPE) on Tuesday showed. "The undersigned is directed to refer to this Department's OM of even number dated 10th December, 2018, 29th May, 2019, 1st June, 2020 and 12th May, 2021 on the subject mentioned above and to inform that the Competent Authority has approved 'Health and Nutrition' as the common theme for CSR activities by CPSEs for the financial year 2022-23."

"All administrative Ministries/Departments are requested to bring the above to the notice of CPSEs under their respective administrative control for information and necessary action," said the DPE.

PSUs spent Rs 4,488 crore on CSR in 2020-21

According to the guidelines issued by the government on CSR spending by PSUs, central themes are selected for every financial year for directing CSR spending. The norms call for aspirational districts to be accorded preference by Central Public Sector Enterprises (CPSE) for their CSR activities.

As per the Public Enterprises Survey, CSR expenditure of PSUs during the last three financial years stood at Rs 4,488 crore in 2020-21, Rs 5,088 crore in 2019-20 and Rs 3,873 crore in 2018-19.

The government provides broad framework for CSR through Section 135 of the Companies Act, 2013, Schedule VII of the Act and Companies (CSR Policy) Rules, 2014 under which CSR is a Board driven process and the Board of the company is empowered to plan, decide, execute and monitor CSR activities based on the recommendations of its CSR Committee. Schedule VII of the Act contains activities that are broadly aligned with national priorities and related to inclusive and sustainable development such as health, education, poverty, eradication of hunger, women empowerment, rural development, slum area development, welfare of weaker sections, disaster management, etc.

According to the Ministry of Corporate Affairs, total CSR spending by 8,633 corporates, including PSUs, stood at Rs 20,360.25 crore in 2020-21. In 2019-20, 22,664 companies spent Rs 24,863.84 crore on CSR.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)