Energy sector emerges as the highest spender

GN Bureau | September 28, 2015


#Energy sector   #NTPC Ltd   #finance minister  


Energy companies spent the highest on corporate social responsibility (CSR) initiatives. The energy sector was followed by financial services and IT when it came to firms that committed to CSR.

With oil and gas companies being among the largest corporations in India by revenue and profit, they emerged as the highest spenders. They spent Rs.1,945 crore in 2014-15, or 38%. The telecom sector spent only Rs.51 crore, while it was expected to spend Rs.194 crore.

However, the consumer goods companies were, however, the only companies that exceeded the mandatory spending limit of 2% of annual profits.

Reliance Industries Ltd spent Rs.761 crore, the most by an Indian company, followed by state-run Oil and Natural Gas Corp. Ltd at Rs.495.2 crore and power producer NTPC Ltd at Rs.205 crore.

These companies focus areas are hunger, poverty, preventive health care, sanitation and safe drinking water. These activities consumed Rs.913 crore. Of that RIL’s spending on healthcare accounted for Rs.608 crore. For the rest, much of it would went toward Swachh Bharat Abhiyaan as most state-run firms were directed to spend on toilets by the ministry of public enterprises.

The sector also linked its CSR spending to business, allocating Rs.412 crore for environmental sustainability initiatives. This includes initiatives such as building rain-water harvesting structures, improving quality of soil, tree plantation among others.

The energy sector, however, did not spend the entire 2% of their combined net profits. It met only up to 89% of what they were supposed to spend. The financial services sector, even though it was the sector that spent the second highest on CSR with Rs.736.9 crore, fulfilled only 54% of what it was supposed to spend.

Financial services companies have spent the most on rural development, where they are mostly carrying out financial inclusion. While government banks are mandated to achieve financial inclusion by opening bank accounts in under-banked areas under the Jan Dhan Yojana, private banks have been asked to participate but not mandated to so.

The technology sector fared better than energy and financial services industries when it came to meeting the 2% spend. They spent Rs.656 crore, which is 91% of what they had to.

The sector focused on education and skill building initiatives, as nearly half the money was spent in this area.

TCS’s employees developed software in nine Indian languages for adult literacy programmes giving them free of cost to organizations such as Lucknow District Jail, HELP NGO in Hiriyur Karnataka and Tata Power Delhi Distribution Ltd, reaching out to as many as 231,178 adults.

“Being the initial year, the company was in the process of evaluating the focus areas and locations of intervention for CSR activities to cater to the pressing needs of society and deliver optimal impact,” said Bharti Airtel in its annual report.

It is not a violation of the law when a firm does not meet 2% spending target, but it is a violation if it does not report its spending and does not disclose why it failed to meet the target.

Consultants and the finance minister have speculated that FY 15 would see about Rs.14,000 crore in CSR spends; now it seems unlikely that the first year will see such a large amount.

Comments

 

Other News

Citizens of the Bay: Why BIMSTEC matters now

The international order is drifting into a dangerous grey zone as the very powers that built today`s multilateral system begin to chip away at it. The United States has increasingly walked away from global rules and forums when they no longer suit its interests, while China has rushed to fill the vacuum on

PM salutes armed forces on one year of Operation Sindoor

Prime minister Narendra Modi on Thursday saluted the courage, precision and resolve of the armed forces on the completion of one year of Operation Sindoor.   The PM said that the armed forces had given a fitting response to those who dared to attack innocent Indians at Pahalgam.&

Supreme Court judge strength to go up by four to 37

The strength of the Supreme Court is set to go up from 33 judges to 37 judges, paving the way for a more efficient and speedier justice. The Union Cabinet on Tuesday approved the proposal for introducing The Supreme Court (Number of Judges) Amendment Bill, 2026 in Parliament to amend The Sup

BJP set to capture West Bengal

The political map of the country is set to be redrawn with the BJP set to win the West Bengal assembly elections, apart from Assam and the union territory of Puducherry. In Kerala, meanwhile, the Congress-led UDF is set to regain power. The filmstar Vijay-led TVK has emerged as the front-runner in Tamil Na

Beyond LPG: Is PNG ready for India’s next cooking fuel transition?

India, the second-largest importer and consumer of LPG after China, faces growing pressure due to supply constraints. Most of India`s LPG imports transit through the Strait of Hormuz, a focal point of global turmoil. Given that LPG forms the backbone of household kitchens and the restaurant industry, any s

Maharashtra adopts hybrid model for Census 2026 data collection

The government has initiated preparations for Census 2026 in Maharashtra, introducing a hybrid approach that combines optional self-enumeration with comprehensive door-to-door data collection to ensure complete coverage across the state.   According to senior officials, the Self-


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter