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    • SHORT NOTES ON COAL INDIA LTD CSR POLICY

    SHORT NOTES ON COAL INDIA LTD CSR POLICY

    • 21-03-2025
    • 1362
    • 0
    • SHORTNOTES
    • CILNON

    Corporate Social Responsibility (CSR) policy of CIL w.e.f. 08.04.2021

    Introduction to CSR Policy of CIL

    CSR is a strategic tool for sustainable growth at Coal India Limited (CIL).

    CSR integrates business with social processes.

    Even before CSR became a global concern, CIL had a Community Development Policy covering 8 km around its projects.

    The CSR policy aligns with the Companies Act 2013 and government guidelines.

    Objective:

    To establish CSR as a key business process.

    To supplement government welfare efforts related to coal minings environmental and social impacts.

    Fund Allocation for CSR:

    For subsidiaries: Higher of (a) 2percent of the average net profit (last three years) or (b) Rs 2 per tonne of coal production (last year).

    For CIL HQ: Higher of (a) 2percent of CILs standalone net profit (last three years) or (b) Rs 2 per tonne of coal production of profitable subsidiaries.

    Any unspent or excess CSR funds must be accounted for as per statutory provisions.

    Selection of CSR Projects & Activities:

    Focus on Project Affected Areas (PAAs) and within a 25 km radius of mining projects.

    80percent of CSR funds must be spent within this radius, while 20percent can be used in the state of operation.

    CIL HQ may finance projects where subsidiaries face fund shortages.

    Activities must align with Schedule VII of the Companies Act.

    Institutional Arrangement:

    CIL and subsidiaries (with net worth Rs 500 croreplus, turnover Rs 1000 croreplus, or net profit Rs 5 croreplus) must form a Board-level CSR Committee.

    CSR Committees ensure policy implementation, review, and progress monitoring.

    Approvals for CSR projects:

    Rs5 lakh & below: Area General Managers.

    Rs5 lakh - Rs1 crore: CMD of the subsidiary.

    Above Rs1 crore: Subsidiary Board.

    Above Rs10 crore: CIL Board.

    Implementation Guidelines:

    CSR projects should be completed within 2 years (max. 3 years allowed).

    Can be executed departmentally or through implementing agencies.

    MoUs required for projects above Rs5 lakh.

    Need assessment should be conducted before project initiation.

    Impact assessment for major projects is mandatory.

    Monitoring & Reporting:

    Real-time data tracking of CSR expenditures and beneficiaries.

    Utilization certificates must be submitted by implementing agencies.

    CSR audit by external auditors for select projects.

    Administrative overheads limited to 5 percent of CSR expenditure.

    Public disclosure of CSR projects on company websites.

    Compliance & Amendments:

    Strict adherence to statutory provisions, rules, and government directives.

    If new government regulations conflict with company policy, statutory regulations will prevail.

    Policy updates in accordance with Companies Act 2013 and amendments.





    Related Sources


    Click Me To Download Short Notes ON CIL CSR POLICY 2021

    Click Me To Download CIL CSR POLICY 2021


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