PSU oil cos agree to hike CSR spend

Tuesday, February 3, 2009 at 2:02 am under Business News

State-owned oil companies on Monday (February 2) agreed for a near-three fold increase in their corporate social responsibility (CSR) spending to two per cent of their profits. The resolve to have more focused approach on social responsibilities came at a meeting called by Petroleum Minister Murli Deora to review the contribution of oil Public Sector Units (PSUs) to CSR activities.

The meeting was attended by Oil Secretary R S Pandey and heads of state oil firms, an official release here said. Chairmen of the oil companies made a comprehensive presentation on the CSR activities undertaken by them which include community development initiatives as education, health and medical care, providing clean drinking water besides rising to the occasion in times of national calamities.

While appreciating the work undertaken by oil companies, Deora said that the CSR activities should be more focused and projects should be undertaken in a manner which can create real impact. It was decided that oil firms would spend at least two per cent of their net profit on CSR. This will be with a rider that allocation on these activities will not be less than that of previous year.

“On this basis it is expected that more than Rs 600 crore will be made available by oil PSUs for CSR activities every year,” the statement said. If the budget allocated for CSR projects in any year is not spent on identified projects, the unspent amount will be carried forward to the next year. Besides, each company will form a dedicated team to look after identification and execution of CSR projects.

At the end of every year, a compilation of CSR activities undertaken by oil PSUs will be released by the Ministry of Petroleum & Natural Gas. “It is expected that funds made available by Oil PSUs for CSR activities will take a quantum leap and many more projects would be undertaken which will benefit larger section of the society. The Oil PSUs will also fulfill their social commitment in a more comprehensive way,” the statement said.

(With inputs from agencies)

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