1. A COMPARATIVE STUDY OF CSR INITIATIVES IN THE POWER
GENERATION AND POWER DISTRIBUTION SECTOR OF INDIA
AMAL DEV M* GEORGY KURIEN
MBA Student Associate Professor
Lean Operations and Systems Lean Operations and Systems
Institute of Management Institute Of Management
Christ University, Bangalore Christ University, Bangalore
amal.dev@mba.christuniversity.in georgy.kurien@christuniversity.in
Mob: 8792334075 Mob: 9974989072
*Corresponding author
Biographical Notes
AMAL DEV M
Amal Dev M is a second year PG student pursuing MBA in Lean Operations and Systems from
Institute of Management Christ University, Bangalore. He has a Bachelor’s Degree in Mechanical
Engineering from Sai Vidya Institute of Technology, Bangalore affiliated to Visvesvaraya
Technological University, Belgaum. He has done an internship project on developing a supply chain
model for B2B e-commerce portal for LED lights. His areas of interest are supply chain management
and data analytics and plans to pursue a career in any of these two fields post completion of his MBA.
GEORGY KURIEN
Georgy Kurien is currently working as an Associate Professor in Lean Operations and Systems
Specialisation at Institute of Management Christ University, Bengaluru India. He teaches Supply
Chain Management, Sustainable Business Management and Operations Management to MBA
students. Prof. Kurien obtained his ME in Mechanical Engineering from University of Pune, India and
PG in Business Management from XLRI Jamshedpur, India. He has around 14 research publications
to his credit which include international journals, book chapters and international conferences. His
areas of interests for research are Performance Measurements in Supply Chains, Sustainable Supply
Chains and Sustainable Business Management.

2. ABSTRACT
Today's corporate world is swarming with the various discussions about Corporate Social
Responsibility (CSR) and its vision to conjunction the corporate and social space. Be that as
it may, the vagueness and non-clarity of CSR first as an idea and then as a practice is broadly
recognized by all. CSR in Indian connection turns into a more genuine discussion after the
introduction of Section 135 of the Companies Act, 2013. Regardless of its late introduction,
the practice of CSR is especially not new to the Indian Public Sector Undertakings (PSUs) as
they have been addressing CSR both ethically and statutorily under the Guidelines on
Corporate Governance for Central Public Sector Enterprises, 2010 (issued by the Department
of Public Enterprises). Subsequently, PSUs undeniably have an extra advantage and
experience over other privately owned businesses as far as CSR is concerned.
This paper tries to dissect the status of Indian Public Sector Undertakings (PSUs) in Power
sector and infer significant observations and trends concerning the initiatives of the CSR
division of the chosen organizations. It is an endeavour to group the activities under the
required guidelines of CSR and attempt to gauge if the endeavours are heading in the right
path. It gives a look into the CSR approaches of Indian Public Sector Undertakings and tries
to draw inferences out of these findings. This paper does not legitimize the good and bad
approaches to the idea of CSR for there is no objective conclusion to its efficiency and
effectiveness. The data used for this research is secondary in nature collected from multiple
sources ranging from the official website of the PSUs, news articles, academic research
journals, independent study reports, media coverage and other relevant and reliable web
sources.
Key words: Corporate Social Responsibility (CSR), Public Sector Undertakings (PSUs),
Corporate Shared Value (CSV)
1 INTRODUCTION
Corporate Social Responsibility, the immensely hyped but less comprehended idea is the new
popular expression in the corporate and social segments. There have been various endeavours
to comprehend the subtleties of this genuinely perplexing and puzzling hypothesis.
Distinctive gatherings have deciphered it contrastingly yet the assent stays in place on the

3. way that CSR is a contemporary concept and has developed out from the deliberate and
liberal generosity of the ones with cash and assets which they facilitate towards the
necessities of the general public. CSR is upheld by the acknowledged need of setting up a
sustainable environment for one and all.
Analysing the term, there exists a quintessence of both moral and practical derivative to it.
This is where the contradiction emerges because CSR as a philosophy is totally different from
the ways it is been practiced at organizations. As a philosophy CSR is more adequately
referred to as Corporate Shared Value (CSV) (Chaturvedi, 2013) which is much wider than
the concept of environment and sustainability and assimilates corporate and communities as a
solitary entity and works for the synchronization of visions. Profit generation has always been
the final objective of a business operation but on the other hand CSR is beyond the statutory
obligations of the organization. (Bibhu Prasad, 2012).
Thus, CSR has remained extraneous to the traditional plans of action and standards of
businesses. In the long run, an attempt has been made to infiltrate the aspect of CSR into the
standard business by the introduction of Section 135 in the modified Companies Act; 2013.It
has further increased the need for a pivotal investigation of testing the synchronization of the
corporate operations with the guidelines of the Act.
This study, tries to examine the status of CSR in the Public Sector Undertakings (PSUs) in
the Indian Power Sector and obtain relevant observations and trends with respect to the
existing CSR mechanism of the concerned area. This paper will at no time attempt to
legitimize the good and bad approaches to the idea of CSR for there is no final conclusion to
its worthiness and relevance. It is an endeavour to gather and discover the activities under the
compulsory principles of CSR and attempt to gauge if the endeavours are heading in the right
course. It throws some light into the CSR initiatives of Indian Public Sector Undertakings and
draw some sensible derivations out of these findings.
This research is more aligned towards power sector and attempts to gather a thorough view of
the existing state of CSR in this sector. It throws light on the recent CSR activities of the
individual organizations chosen and binds to guide its importance, appropriateness, adequacy,
limitations and social reactions. The report likewise makes an endeavour to offer brief
investigation of the issue and offer suggestions in its own particular humble limit.
The motivation behind this paper is to draw public attention towards the moderately under-
looked and under-investigated zone of CSR initiatives in Indian PSUs. The paper is organized

4. with a brief description of the research methodology followed by an overview, research
findings, shortcomings and recommendations of CSR initiatives of power sector PSUs.
2 RESEARCH METHODOLOGY
2.1 Research Objective
The objective of this research is to carry out a comparative study on the status of CSR
initiatives in the power generation and power distribution sector of India.
Before moving ahead it is very important to understand the reasons behind choosing Public
Sector Undertakings (PSUs) of power sector for this research. PSUs have a prominent role in
CSR as they are the primary foundations of Indian economy and acts a pioneer for implanting
CSR at all types of organizations both public and private organizations.
The three main reasons for choosing Power Sector PSUs are as follows:
1. Even before the introduction of Schedule 135 of the Companies Act, 2013, Directives
on Corporate Governance for Public Sector Enterprises, 2010 was issued by
Department of Public Enterprises (DPE). This gives an effective foundation for a
thorough research.
2. Government in all ways and forms is obliged towards the improvement of the
livelihood of citizens of the country.
Power Sector, owing to its gigantic operation size and coverage leads to exploitation
and pollution of natural resources of the country. Their operations lead to
displacement of livelihoods of many and it creates adverse impact on the
environment. Hence they are indebted greatly to the society and they can repay them
in the form of CSR spending.
2.2 Sources of Data
Exploratory Research
The data used for this research is secondary in nature collected from multiple sources ranging
from the
∑ Official website of the PSUs
∑ News articles, academic research journals
∑ Independent study reports, media coverage
∑ Other relevant and reliable web sources

5. 2.3 Domain of Research
The Power sector includes the below mentioned companies involved in power generation and
power distribution.
Table 1: List of selected Power Sector PSUs
SL.NO Power Sector PSU
1 National Thermal Power Corporation Ltd.
2 National Hydroelectric Power Corporation
3 Power Finance Corporation Ltd.
4 Power Grid Corporation of India Ltd.
5 Rural Electrification Corporation Ltd.
3 OVERVIEW OF CSR IN POWER SECTOR PSUs
The table shown below has been developed post a broad study on the available secondary
data on the CSR activities and endeavours of the Power PSUs. The facts and figures basically
pertain to the financial year 2014-15:
Table 2: Overview of CSR in Power Sector PSUs
PSU CSR
budget
( in crores)
Major
Operating
Regions
Focus
Areas
CSR
Committee
Current
Status
of
CSR activities
NHPC Budget
Allocated:
47.64
Amount
Spent :
52.24
Himachal
Pradesh,
Arunachal
Pradesh,
Assam,
UP, Sikkim,
Darjeeling
Education,
Healthcare,
Women
Empowerment,
Swacchh Bharat
Abhiyaan,
Swacchh
Vidayylaya
a. Board level
CSR and
sustainability
Committee
b. Nodal Officer
and team will
be
responsible
NHPC has set
aside 40 crores
for construction
of 2242 toilets
in Assam and
AP under
Swacchh
Vidayylaya

6. Abhiyaan. for selection
and execution
of CSR
projects
c. Unit, regional
and corporate
level teams
for
identifying,
executing
and
monitoring
CSR
activities
Abhiyaan
NTPC Budget
Allocated:
283.48
Amount
Spent :
205.18
Arunachal
Pradesh,
Odisha,
Noida
,Lucknow,
Rihand,
Dadri,
Kerala
Health,
Sanitation,
Drinking water
, Education,
Women
Empowerment,
Social
infrastructure
development,
Support to
specially abled,
Environmental
sustainability
a. Board level
CSR and
sustainabilit
y
Committee
b. NTPC
Foundation
c. EVOICE
The company
continues to
have an active
presence in
several social
initiatives
throughout the
year on skill
development,
women
empowerment
and rural
infrastructure.
PGC Budget
Allocated:
1.92
Amount
Spent :
1.91
Delhi,
Meghalaya,
Assam,
Karnataka,
Haryana,
UP,
Andhra
Pradesh,
Rural
Infrastructure,
Skill
Development,
Environment,
Healthcare
Board level CSR
committee of
directors headed by
independent director
Majority of
activities
were focussed
on employee
engagement
programs like
blood donation
and tree

7. North East,
Sikkim
planation
drives
PFC Budget
Allocated:
117.49
Amount
Spent :
51.68
Andhra
Pradesh,
Leh,
Mussoorie
Gujarat,
Sikkim,
Jharkhand,
Maharashtra,
WB
Health,
Sanitation,
Drinking water
Education,
Women
Empowerment,
Environmental
sustainability
Board level CSR
committee of
directors headed by
independent director
Skill
development
projects in rural
areas of the
country
RECL Budget
Allocated:
103.25
Amount
Spent :
103.25
Punjab,
Rajasthan,
UP, Bihar,
Telangana,
AP, Odisha,
Jharkhand
As specified in
Companies Act,
2013
Board level CSR
committee of
directors and
communication
strategy
There has been
no media
coverage of
RECL’s CSR
initiatives in
2015
4 RESEARCH FINDINGS AND RECOMMENDATIONS
After a comparative study on the CSR initiatives of the Power Sector PSUs some interesting
comments can be made on the practice of CSR. Although CSR has been implemented in
Public Sector Undertakings for almost a decade now but the definition and implementation of
CSR in these organizations is still very much in a nascent stage. The research findings show
that CSR is still been practiced just for name sake rather than as a means of improving the
conditions of the communities and societies with which the PSUs co-exist. Here are some of
the findings from study of CSR initiatives with its shortcomings and recommendations to
improve them.
4.1 Findings
On a general level, with respect to the qualities of operations, the liberality and effectiveness
of spending, topographical scope, positive after results and a recognizable public presence

8. NTPC, RECL and NHPC have been more superior in the CSR front over the other PGC and
PFC.
Table 3: Summary of Observations
Parameter Observation
Areas of Focus The focus areas for CSR initiatives of the power sector companies
seems to be overlapping with each other. The primary areas of focus
are Health, Education and Rural Development.
Budget Allocation NTPC is one of the highest contributors towards CSR in the year
2015. Its budget allocation unlike others is based on geographical
locations rather than focus areas. NHPC is spending more than the
statutory prerequisite and PFC gives off an impression of spending
less than the allocated sum.
Execution Most of the selected power sector PSUs have preferred direct
execution of the CSR activities as opposed to partnering with any
third party agencies. There are only few documents available on the
impact assessment of CSR initiatives in powers sector PSUs. NHPC
also clearly mentions its official CSR document that there has been no
impact study carried out for the CSR activities.
Geographical
Variation
As the establishment of power sector PSUs are subjected to the
availability of natural resources thus a majority of CSR activities are
implemented in the north eastern regions of India like Assam,
Arunachal Pradesh, Meghalaya etc.
Role of
Government
Governmental regulations and control have a prominent presence in
PSUs. Hence most of CSR budget allocated goes to implementing
government initiatives and schemes such as Swacchh Bharat
Abhiyaan, Swacchh Vidayylaya Abhiyaan.
4.2 Shortcomings

9. A comparative study of the Power sector PSUs brings out the blacks, whites and the greys of
the segment. NTPC is a standout amongst all the chosen organizations regarding CSR
activities in the nation .It is recognized for its exhaustive Resettlement and Rehabilitation
(R&R) policies community development (CD) initiatives. Notwithstanding, the overall
endeavours of the Power sector appears to be scattered and lacks planning. It needs
specialization and focus .The areas of focus are more aligned towards Health and
Environment. These areas are without a doubt extremely critical however other areas like
Rural Development and Education must also be given equal importance.
a. There is an absence of clarity in the entire process of CSR. CSR as an idea is
embraced enigmatically and for name sake.
b. Schedule 7 of the Companies Act, 2013 is a very exhaustive list and it restrains the
dimensions of CSR operations. It overlooks the dynamics of the existing social
circumstances in India.
c. There is a widespread Communication Gap between the PSUs and the communities.
Even though, the PSUs employ mediators who supposedly know the community and
their situations better, there still are loopholes which results in incomplete knowledge
and makes the initiatives just another act of charity.(Sethi,2013)
d. There is a lack of coordination between the state government and the PSU. They are
rarely on the same level of understanding and often the state governments are not
involved in the CSR initiatives of the PSUs. This makes the exchange of resources
and plans a tedious and time-taking procedure.
e. Lack of transparency and liability is yet another important shortcoming. There is no
tangible way to hold the companies accountable for what they have or have not done.
4.3 Recommendations
1. Extensive Documentation: There is a need to document and refer the impact and
findings of the CSR activities initiated by the PSUs. These records will help to
trace the course of the action of the activities, and will help in figuring out the
drawbacks and assist further improvements.
2. Need of Expertise: The sector needs more expertise and focus from bodies
specialized in the field of research, planning, execution and follow ups of CSR
initiatives needs to be brought on board. Assistance can be taken from institutions

10. such as CSR Hub by Tata Institute of Social sciences and more such
collaborations should be encouraged for foundation building of CSR by the
companies as well as the government.
3. Dynamic Collaborations: The collaborations should be made more laced and
mutually dependent. The organizations need to join hands with a few partners
including the state governments, NGOs, other corporates with the same objectives
and initiatives, experts, representatives of the community, social researchers etc.
4. Role of Media: Media has always been a very powerful method to reach out to
the maximum number of people in the minimum time. CSR initiatives of these
PSUs should look out for more media presence as it would acknowledge their
efforts as well invite people with common objectives to draw closer and aid the
PSUs with the CSR operations.
5. Flagship Projects: The PSUs instead of spending on multiple generic issues
without a substantial plan, should try to narrow down their focus to some integral
areas which they can specialize in and should formulate a more extensive and
innovative plan which could be their flagship project and hence become
something distinct to that particular PSU.
6. Accountability and Transparency: In order to keep a clear track on the
reliability of the CSR operations of the PSUs and avoid any dubious actions, the
accountability should be made more absolute. The provisions of Article 135 of the
Companies Act, 2013 and the guidelines on corporate governance of central
Public Sector Enterprises, 2010 by the Department of Public Enterprises can be
merged into one and the regulating bodies can be made more particular about the
non-compliance about the non-seriousness of the CSR approach.
7. Capacity Building: Even though the PSUs need to seek some expertise in the
initial stages of working, the focus should primarily be on building one’s own
capacity and involving itself more and more in the planning and implementation
of the CSR initiatives. The implementation should solely depend upon the
company by the way of employee engagement, establishing special CSR cell
within the company itself and many more of such innovative initiatives.

11. CONCLUSION
There is no doubt that the state of CSR policy in India has changed drastically. It has
taken a noteworthy leap from an insignificant inconsistence approach to a more planned
and systematic approach keeping in mind the end goal to mitigate the social hardships of
the people and the society it co-exists with. The definition and most importantly the
practice of CSR in the corporate world has changed dramatically. The present study
indicates that although CSR has been implemented in Power Sector PSUs for over decade
now but the overall practice of CSR is still very much in a nascent stage. As it has been
observed from the study that most of the CSR endeavours of PSUs coincide in terms of
the type of projects, geographical location, focus areas and target segment which has to
change as PSUs are responsible for the development of each and every section of the
society rather than just certain communities. Thus the PSUs must bring in the right
expertise through dynamic collaborations with external agencies to develop flagship CSR
projects with optimum media presence which must be followed up with impact
assessments of these CSR practices on the society by establishing transparent and
accountable CSR committees.
Indian PSUs today are well aware of their duties and commitments towards the society.
All they need is the right direction and approach to adhere to those commitments. With a
specific end objective to become a co-existent member of the society, PSUs need to fit in
the shoes of the communities and attempt to make CSR a regular practice. The
compliances of CSR must be done in a way that it involves majority of shareholders and
generate their interest towards this monetarily and socially possible charity plan. Once the
PSU can make a collaboration between all the stakeholders of the society, it would be a
win-win position for all the vested parties. PSUs need to emphasize on the ever changing
needs and desires of the citizens of the country. The CSR methodology of the PSUs must
be more sensitive, sympathetic and in the meantime more focussed and specific.
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