“It is time to ask not just how much was spent, but how much was changed.”
India made history in 2013 by becoming the first country in the world to legally mandate Corporate Social Responsibility (CSR) through Section 135 of the Companies Act. Since then, Public Sector Undertakings (PSUs) have been among the largest contributors to India’s CSR landscape, often hailed as the backbone of social investment.
But as the law enters its second decade, one question looms large: Are PSUs truly committed to nation-building through CSR, or merely fulfilling a statutory obligation?
What the CSR Law Demands
As per the Act:
Companies having a net worth of ₹500 crore or above, or a turnover of ₹1,000 crore or more, or a net profit of ₹5 crore or more, are required to allocate at least 2% of their average net profits from the preceding three financial years towards CSR activities, in accordance with Schedule VII of the Companies Act.
This includes education, poverty alleviation, healthcare, gender equality, environmental sustainability, and more.
India Inc. CSR Spend (FY 2014–2022): ₹1.36 lakh crore+
Share of PSUs: ~35% of total spend
“Public Sector CSR accounts for more than one-third of India’s total CSR commitment—making PSUs indispensable players in social development
PSUs: Consistent Contributors, But to What Effect?
According to the National CSR Portal, in FY 2021–22 alone:
Top PSU | CSR Spend (₹ crore) |
ONGC Ltd. | 514 |
NTPC Ltd. | 418 |
Indian Oil Corporation Ltd. | 395 |
Power Grid Corporation | 245 |
Coal India Ltd. | 197 |
Compliance vs Commitment: A Sector-Wide Tug-of-War
The Compliance Mindset:
Many PSU CSR teams still treat CSR as a financial obligation rather than a transformational mission. Indicators of this mindset include:
- Last-quarter budget push
- One-time infrastructure projects
- Minimal community engagement
Encouraging Signs of Commitment
However, many PSUs are now rethinking their approach and investing in deeper, longer-term CSR missions:
Notable Examples:
- NTPC’s GEM Initiative:
Empowering underprivileged girls through education and life skills—active in over 15 states. - IOCL’s Sustainability Drive:
Afforestation, water conservation, and waste management projects across refineries and plants. - ONGC’s Tribal Health Outreach:
Cancer screening, mobile health vans, and rural health awareness in remote areas.
These initiatives reflect a transition from project-based philanthropy to purpose-driven partnerships.
Governance: The Need for Professional CSR Boards
Although DPE guidelines outline CSR policy for PSUs, governance gaps remain:
- Limited presence of CSR domain experts on committees
- Few partnerships with grassroots NGOs
- Scarce use of third-party social audits
Challenges and the Way Forward : Key Issues in PSU CSR Delivery
Geographical Imbalance
Most CSR funds are concentrated near company HQs or plants, leaving aspirational districts under-supported.
Community Disconnect
Many projects are designed with minimal stakeholder input, leading to mismatched priorities.
Measurement Gaps
Lack of structured impact evaluation frameworks hinders scaling or replication.
Recommendations for Strengthening PSU CSR
Adopt Integrated Social Impact Strategies
Move from disjointed annual projects to multi-year thematic programs (e.g., climate resilience, skilling, gender empowerment).
Stakeholder Participation
Co-create programs with panchayats, NGOs, SHGs, and beneficiaries for greater ownership.
Enhance Monitoring
Mandate third-party impact assessment and real-time dashboard monitoring.
Collaborate for Scale
Work with state governments, academia, and NITI Aayog for alignment with SDGs and national development goals.
A Moment of Reckoning
PSUs have the resources, reach, and regulatory backing to become true changemakers in India’s development journey. The next chapter of CSR must reflect intentionality, innovation, and integrity.
