Each company will form a dedicated team to look after the identification and execution of CSR projects
New Delhi, Feb. 2 Public sector oil companies have agreed to spend at least 2 per cent of profits on corporate social responsibilities (CSR).
A resolution to this effect was passed at a meeting of oil PSU chiefs called by the Petroleum Minister, Mr Murli Deora, on Monday at Mumbai, to review the contribution of oil PSUs on activities pertaining to CSR.
According to a Petroleum Ministry release, “Oil companies will be spending at least 2 per cent of the net profit of the previous year on CSR activities.
“However, the allocation would not be less than the allocation on CSR activities for previous year. On this basis it is expected that more than Rs 600 crore will be made available by these companies for CSR activities every year.”
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, the release said. Further, each company will form a dedicated team to look after the identification and execution of CSR projects.
“With the adoption of this resolution, 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 fulfil their social commitments in a more comprehensive way,” the release said.