Why in News ?
- FY 2023–24 CSR data shows Public Sector Undertakings (PSUs) have emerged as the largest contributors to India’s CSR spending.
- Total CSR expenditure rose to ₹29,987 crore (up from ₹26,209 crore in FY 2022–23).
- PSU contribution: ₹5,000 crore, a 19% increase year-on-year — reflecting the integration of sustainability and inclusion into corporate strategy.
Relevance:
- GS Paper 2 – Governance: CSR as a tool for inclusive governance, policy–corporate convergence, and role of PSUs in social transformation.
- GS Paper 3 – Economy and Sustainable Development: ESG integration, CSR-linked financing, and green industrial transition under Amrit Kaal Vision 2047.
- GS Paper 2 – Social Justice: CSR-driven empowerment in health, education, and livelihoods, especially in NE and tribal regions.
Basics: What is CSR ?
- Definition: Corporate Social Responsibility (CSR) is the ethical obligation of companies to contribute to societal and environmental well-being.
- Legal Mandate:
- Introduced under Companies Act, 2013 (Section 135).
- Mandates companies with net worth ≥ ₹500 crore, or turnover ≥ ₹1,000 crore, or net profit ≥ ₹5 crore to spend 2% of average net profits (past 3 years) on CSR.
- CSR Areas: Health, education, environment, rural development, gender empowerment, skill development, and poverty alleviation.
India’s CSR Ecosystem
- Global Leadership: India is the first country to legally mandate CSR expenditure.
- CSR as Strategy (Not Charity):
- Earlier: Philanthropy-driven goodwill.
- Now: Strategic integration into business models aligned with SDGs and ESG (Environmental, Social, Governance) norms.
- Regulatory Oversight: Ministry of Corporate Affairs (MCA) monitors through National CSR Data Portal.
CSR Spending Trends (FY 2023–24)
- Total CSR spending: ₹29,987 crore (↑15% YoY).
- PSUs’ share: ₹5,000 crore (↑19%).
- Sectoral Priorities:
- Healthcare: 25%
- Environment & Sustainability: 20%
- Education & Rural Development: 15%
- Skill Development & Livelihoods: 10–15%
- Shift in Focus: From short-term charity to long-term sustainability, climate resilience, and inclusive livelihoods.
PSUs as CSR Catalysts
- PSUs combine economic reach, technical expertise, and public accountability — creating scale and credibility for CSR implementation.
- Their CSR activities directly contribute to national missions like:
- Atmanirbhar Bharat (self-reliance)
- Skill India
- Swachh Bharat
- Jal Jeevan Mission
- Beti Bachao Beti Padhao
- National Hydrogen Mission
Major PSU-led CSR Initiatives (FY 2023–24)
a) Indian Oil Corporation (IOC)
- CSR Expenditure (11 years): ₹3,912.33 crore.
- Focus areas: Rural electrification, renewable energy, women’s empowerment, and health outreach.
b) Oil India Limited (OIL)
- Flagship Projects:
- Project Vasundhara: Biodiversity conservation; reforestation & afforestation in Dibrugarh, Assam (Lakhipathar Range).
- Project KAVACH: Safety, disaster preparedness, and community resilience.
- Mobile Medical Units: Last-mile healthcare delivery in Assam & NE.
c) GAIL (India) Limited
- CSR Spend: ₹175.71 crore.
- Programmes:
- ELITE: Empowerment through Education, Livelihood, and Technology — builds water systems, sanitation, and micro-enterprises.
- Sashakt: Women’s economic empowerment through skill-based training & entrepreneurship ecosystems.
- Focus: Climate action, renewable energy, and education support.
d) Rail Vikas Nigam Limited (RVNL)
- Skill Development Project: ₹300 crore for local youth near project sites — aligned with “Viksit Bharat 2047”.
- Digital Literacy Drives & environmental awareness campaigns in collaboration with state governments.
Thematic Focus of PSU CSR
| Theme | Examples | Developmental Link |
| Health & Nutrition | Mobile clinics, sanitation, maternal health | SDG 3 (Good Health) |
| Education & Skilling | Oil Swabalamban, RVNL Training | SDG 4 (Quality Education), SDG 8 (Decent Work) |
| Environment & Climate | Project Vasundhara, GAIL green projects | SDG 13 (Climate Action), SDG 15 (Life on Land) |
| Gender Inclusion | Sashakt, women-led microenterprises | SDG 5 (Gender Equality) |
| Infrastructure & Connectivity | Electrification, water systems | SDG 9 (Industry, Innovation, Infrastructure) |
Regional Impact
- Backward & Border Regions: CSR focus on North-East, Central India, and tribal belts.
- Urban Development: Support for smart city components, green mobility, and waste management systems.
- Bridging Urban–Rural Divide: Integrated CSR for education, healthcare, and livelihoods across geography.
Policy–Corporate Synergy
- Government’s National Guidelines on Responsible Business Conduct (NGRBC, 2019) align PSUs’ CSR with SDG frameworks.
- Sustainable Finance & ESG Reporting: CSR data increasingly linked to BRSR (Business Responsibility and Sustainability Reporting).
- PSUs support flagship missions:
- Net Zero by 2070
- Amrit Kaal Vision 2047
- Make in India + Green Growth
Challenges
- Inequitable CSR Distribution: Concentration in developed states (Maharashtra, Gujarat, TN) vs. low-spending in NE and hill states.
- Outcome Measurement Issues: Lack of standardized impact evaluation metrics.
- Duplication of Efforts: Limited coordination among PSUs, ministries, and NGOs.
- Short-term Visibility Bias: Some projects remain event-driven, not outcome-oriented.
Way Forward
- Shift to Outcome-Based CSR: Measure long-term social impact, not mere financial outlays.
- Cluster Approach: Collaborative CSR among PSUs in the same geography.
- Integrate CSR with ESG: Build sustainability-linked reporting frameworks.
- Technology Integration: Use AI, GIS, and digital dashboards for real-time monitoring.
- Public–Private–Community Partnerships: Co-design projects with local institutions.
- Focus on Resilient Livelihoods: Green skilling, renewable energy, circular economy.
Conclusion
- PSUs are transforming CSR from compliance to commitment, blending economic strength with social consciousness.
- Their initiatives align with SDGs, Amrit Kaal Vision 2047, and Viksit Bharat goals.
- A sustainable and inclusive future hinges on strengthening CSR–governance convergence, ensuring that growth is both green and equitable.
