Maharatna cos allocated Rs 1,100 cr for CSR in first 6 months

NEW DELHI: Maharatna companies earmarked over Rs 1,100 crore for corporate social responsibility ( CSR) activities during April-September 2011, while Navratna firms alloted about Rs 360 crore, Parliament was informed today.

Maharatna companies -- NTPC, ONGC, SAIL, CIL and IOC -- have allocated funds over Rs 1,100 crore for corporate social responsibility (CSR) during the first six months of the current fiscal, Minister for Heavy Industries and Public Enterprises Praful Patel said in a written reply to the Lok Sabha.

There are 16 Navratna firms including BHEL, GAIl, NMDC, PFC and Oil India.

CSR is a company's commitment to operate in an economically, socially and environmentally sustainable manner, while recognising the interests of its stakeholders.

In April 2010, the Department of Public Enterprises had issued CSR guidelines.

Under the norms, PSUs have to create mandatorily, through a resolution, a CSR budget from a specified percentage of their net profit of the previous year.

State-owned units earning net profit of less than Rs 100 crore would spend 3-5 per cent of it on the CSR programmes, while those earning profit after tax between Rs 100 crore to Rs 500 crore would have to earmark 2-3 per cent on such activities.

PSUs earning net profit of more than Rs 500 crore would contribute 0.5-2 per cent of it towards CSR.

Patel, however said, loss-making companies are not mandated to earmark specific funds for CSR activities.