ONGC and SAIL Have Not Fully Used Funds Earmarked for CSR in The Last Fiscal

PTI reported that blue chip Central Public Sector Enterprises like Coal India, Indian Oil Corporation, ONGC and SAIL have not fully utilized their funds allocated for undertaking corporate social responsibility projects in 2011-12.

Mr Praful Patel minister of Heavy Industries and Public Enterprises said that of the 5 Maharatna PSUs, 4 of them Coal India, Indian Oil Corporation, ONGC and SAIL have not fully used funds earmarked for CSR in the last fiscal.

During 2011-12, CIL earmarked an amount of INR 553 crore but spent merely INR 77 crore while ONGC allocated INR 378 crore and utilized only INR 121 crore.

Indian Oil Corporation allocated about INR 96 crore and used only INR 83 crore and SAIL allocation was INR 64 crore and utilized amount was INR 61 crore, for carrying out CSR activities.

However, NTPC exceeded the limit of allocated amount for carrying out CSR activities in the last fiscal. The company had earmarked INR 45 crore and spent INR 49 crore.

The figures said that as regard to 16 Navratna PSUs, 4 of them BHEL, GAIL, Hindustan Petroleum and RINL have not fully utilized the allocated amount for carrying out such projects.

However, another 5 Navratna PSUs Bharat Petroleum, National Aluminium Company, Oil India, PFC and Rural Electrification Corporation have fully utilized these funds during the period under review.

Another 6 Navratnas Bharat Electronics Ltd, Hindustan Aeronautics, NMDC, Neyveli Lignite Corp, Power Grid and Shipping Corporation have exceeded the limit of allocated amount.

According to the guidelines on CSR for CPSEs, the CSR budget has to be mandatorily allocated through a board resolution as percentage of net profit in the previous year.

PSUs whose net profit is less than INR 100 crore have to contribute 3% to 5% of their income for CSR while PSUs with profits between INR 100 crore to INR 500 crore would be required to earmark 2% to 3%.

Further, those companies earning a profit of INR 500 crore and above, CSR spending should be between 0.5% to 2% of their net profit.