Corporate Social Responsibility amount spent by Mahanadi Coalfields Limited, major coal producing company of
India and also one of the eight subsidiaries of Coal India Limited
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CSR Spending of Mahanadi Coalfields Limited
1. [1]
CHAPTER-1
Introduction
1.1 Introduction to the Topic
Mahanadi Coalfields Limited (MCL) is one of the major coal producing company of
India. It is one of the eight subsidiaries of Coal India Limited. Mahanadi Coalfields
Limited was carved out of South Eastern Coalfields Limited in 1992 with its
headquarters at Sambalpur. It has its coal mines spread across Odisha. It has total
seven open cast mines and three underground mines under its fold. It has two
coalfields, Talcher & IB Valley in Orissa. Talcher Coalfield area is approximately
25 KMs from District Headquarter, Angul.
This project covers the topic of corporate social responsibility (CSR) done by MCL.
1.2 OBJECTIVE OF THE STUDY
The objective of the study are
To know the concept of CSR.
To know the different sector where CSR is spent.
To study the different activities under CSR
To study the CSR policy of Mahanadi Coalfields Limited
To know CSR spending of MCL company in Odisha
To highlight various CSR activities carried out by MCL from year 2012-13 to
2016-17
1.3 RESEARCH METHODOLOGY
1.3.1MEANING OF RESEARCH:-
Research is scientific and systematic search for pertinent information on a specific
topic. In fact, research is an art of scientific investigation. It is also a investigative
process employed to increase or revise current knowledge by discovering new facts.
It is divided into two general categories:
(1) Basic research is inquiry aimed at increasing scientific knowledge, and
(2) Applied research is effort aimed at using basic research for solving problems or
developing new processes, products, or techniques.
2. [2]
The Advanced Learner’s Dictionary of Current English lays down the meaning of
research as “a careful investigation or inquiry especially through search for new
facts in any branch of knowledge.”
1.3.2DATA COLLECTION:-
Data collection is a process of collecting information from all the relevant sources to
find answers to the research problem, test the hypothesis and evaluate the outcomes.
Data collection methods can be divided into two categories: secondary methods of
data collection and primary methods of data collection.
Primary Data
Raw data or primary data is a term for data collected at source. This type of
information is collected directly from first hand sources by following method
Observation Method
Interview Method
Questionnaire
Schedules
Secondary Data
When the data are collected by someone else for a purpose other than the
researcher’s current project and has already undergone the statistical analysis is
called as Secondary Data. Secondary data is a type of data that has already been
published in books, newspapers, magazines, journals, online portals etc. There is an
abundance of data available in these sources about your research area in business
studies, almost regardless of the nature of the research area. Therefore, application
of appropriate set of criteria to select secondary data to be used in the study plays an
important role in terms of increasing the levels of research validity and reliability.
The secondary data are readily available from the other sources and as such, there
are no specific collection methods. The researcher can obtain data from the sources
both internal and external to the organization. The internal sources of secondary
data are:
Sales Report
Financial Statements
Customer details, like name, age, contact details, etc.
Company information
Reports and feedback from a dealer, retailer, and distributor
Management information system
There are several external sources from where the secondary data can be collected.
These are:
3. [3]
Government censuses, like the population census, agriculture census, etc.
Information from other government departments, like social security, tax
records, etc.
Business journals
Social Books
Business magazines
Libraries
Internet, where wide knowledge about different areas is easily available.
By way of caution, the researcher, before using secondary data, must see that they
possess following characteristics:
1. Reliability of data: The reliability can be tested by finding out such things about
the said data:
(a) Who collected the data?
(b) What were the sources of data?
(c) Were they collected by using proper methods?
(d) At what time were they collected?
(e) Was there any bias of the compiler?
(f) What level of accuracy was desired? Was it achieved?
2. Suitability of data: The data that are suitable for one enquiry may not necessarily
be found suitable in another enquiry. Hence, if the available data are found to be
unsuitable, they should not be used by the researcher. In this context, the researcher
must very carefully scrutinize the definition of various terms and units of collection
used at the time of collecting the data from the primary source originally. Similarly,
the object, scope and nature of the original enquiry must also be studied. If the
researcher finds differences in these, the data will remain unsuitable for the present
enquiry and should not be used.
3. Adequacy of data: If the level of accuracy achieved in data is found inadequate
for the purpose of the present enquiry, they will be considered as inadequate and
should not be used by the researcher. The data will also be considered inadequate, if
they are related to an area which may be either narrower or wider than the area of
the present enquiry.
1.4. Motive of the Study
CSR involves various aspects such as economic factors, legal requirements,
ethical orders and discretionary demands. In this high-tech era, business
environments are susceptible to changes in these factors. Each firm must be
fully aware and sensitive to the impact of these factors. The effect of these
factors may add to the firm’s corporate image and financial performance.
4. [4]
CSR actually portrays the image of the firm itself. It shows what the company
has done to fulfill its corporate duty to ensure the firm is not only good in
providing the service but also plays its roles by contributing something to the
community. This topic closely associates two intangible assets of the company,
brand and CSR.
1.5. Limitation of the Study
To carry out the research study the following limitations were expected and faced
during the research study
I only had a limited time of two months available for my research to find
conclusion ,
I could not go for field visit get response due to time limitations and also for the
college classes.
The information has been collected from different journal, newspapers,
magazine and most are secondary data. There is possibility of some error to a
limited extent.
However, to overcome the limitations and maintain the effectiveness of research
work sincere efforts were put.
5. [5]
CHAPTER-2
Corporate Social Responsibility
2.1 Meaning:-
Corporate Social Responsibility refers to business initiatives and practices that
benefit our society. It involves considering social and environmental impacts of
all the decisions and activities of a business along with taking additional
initiatives to directly contribute to social and environmental development. In a
nutshell, CSR is a business organization’s “Commitment” to operate its business
in a “Socially Responsible” way.
Furthermore, it also involves going beyond the interest of the organization and
work solely for the development of the society.
2.2 Definition:-
Corporate social responsibility (CSR) is a business approach that contributes to
sustainable development by delivering economic, social and environmental
benefits for all stakeholders. CSR is a concept with many definitions and
practices.
The World Business Council for Sustainable Development in its publication
Making Good Business Sense by Lord Holme and Richard Watts, used the
following definition:
“Corporate Social Responsibility is the continuing commitment by business to
behave ethically and contribute to economic development while improving the
quality of life of the workforce and their families as well as of the local
community and society at large.”
The World Business Council for Sustainable Development (WBCSD) defines
CSR as,
“The continuous commitment by the business organization to behave ethically
and contribute to the economic development while improving the quality of life
of the workforce and their families as well as of the local community and society
at large.”
2.3 Types of Corporate Social Responsibility
Corporate social responsibility initiatives are standards and measures that
businesses put in place to benefit society. Generally speaking, these initiatives
are based on sustainability in four different categories.
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2.3.1 Environmental Responsibility:-
Environmental sustainability initiatives enacted by businesses generally focus on
two main areas: limiting pollution and reducing greenhouse gases. As the
awareness of environmental issues grows, businesses that take steps to reduce
air, land and water pollution can increase their standing as good corporate
citizens while also benefiting society as a whole. For example, Cisco Systems, a
multinational technology company, has taken a variety of steps to reduce its
carbon footprint, including the installation of photovoltaic systems at production
facilities and developing platforms that allow employees to work from remote
locations rather than commuting to the office.
2.3.2 Philanthropic Initiatives:-
Philanthropic initiatives include the donation of time, money or resources to
charities and organizations at local, national or international levels. These
donations can be directed to a variety of worthy causes including human rights,
national disaster relief, clean water and education programs in underdeveloped
countries.
2.3.3 Ethical Business Practices:-
The primary focus on ethics is to provide fair labor practices for businesses’
employees as well as the employees of their suppliers. Fair business practices for
employees include equal pay for equal work and living wage compensation
initiatives. Ethical labor practices for suppliers include the use of products that
have been certified as meeting fair trade standards.
2.3.4 Economic Responsibility:-
Economic responsibility focuses on practices that facilitate the long-term growth
of the business, while also meeting the standards set for ethical, environmental
and philanthropic practices. By balancing economic decisions with their overall
effects on society, businesses can improve their operations while also engaging
in sustainable practices. An example of economic responsibility is when a
company modifies its manufacturing processes to include recycled products,
which could benefit the company by potentially lowering the cost of materials
and also benefit society by consuming fewer resources.
2.4 Some Examples of CSR Activities
Promotion of Education by
Formal and non-formal education, adult education
Scholarships for girls, merit scholarships and technical education for boys
Distance education
Girl child education
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Digital literacy / computer education
setting up public libraries
Health care and family welfare
Pulse Polio Programme
Health care centres and hospitals
Mobile clinics-doctors' visits
General and multispecialty medical camps, cleft lips
Reproductive and child health care, supplementary nutrition / mid-day
meal projects
Safe drinking water, sanitation-household toilets, community hospitals
HIV / AIDS, cancer, TB awareness and prevention camp
Blood donation
Responsible parenting
Social causes
Widow re-marriage / dowry-less mass marriages
Social security (insurance)
Culture and sports: - Training to promote rural sports, nationally
recognized sports, Paralympic sports and Olympic sports.
Promoting gender equality
Women empowerment
Infrastructure development
Building Community centres
Building schools in villages
Building of Roads
Setting up homes for the homeless
Setting up old age homes
Rural Development
Irrigation and water storage structures
Rural electrification
Slum area development
Sustainable livelihood
Self-help groups (microfinance for women and farmers)
Integrated agriculture development
Integrated livestock development
Watershed management
Microenterprise development
Others
Ensuring environmental sustainability
Ecological balance
Protection of flora and fauna
Animal welfare
Agro Forestry
Conservation of natural resources
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Maintaining quality of soil, air and water
Protection of national heritage
Restoration of buildings and sites of historical importance and works of art
Promotion and development of traditional art and handicrafts
Contribution to the Prime Minister’s National Relief Fund or any other
fund set up by the Central Government for socio-economic development
Relief and welfare of the Scheduled Castes, the Scheduled Tribes, other
backward classes, minorities and women;
2.5 Provisions:-
Under Companies Act, 1956 there is no provision for Corporate Social
Responsibility (CSR).According notified Section 135 and Schedule VII of the
Companies Act 2013 as well as the provisions of the Companies (Corporate
Social Responsibility Policy) Rules, 2014 to come into effect from April 1,
2014’Corporate Social Responsibility is required for all companies viz. private
limited company, limited company. The following companies are necessary to
constitute a CSR committee:
Companies with a net worth of ₹ 500 crores or greater, or
Companies with a turnover of ₹ 1000 crores or greater, or
Companies with a net profit of ₹ 5 crores or greater.
2.5.1 Mandatory Expenditure:
Section 135(5) mandates 2 percent of the Average net profit during the three
immediately preceding financial years.
Example:-
For Financial Year 2016-17 Calculation: Average net profit of FY 2012-13,
2013-14 & 2014-15 needed to be considered
As per the CSR Rules, the provisions of CSR are not only applicable to
Indian companies, but also applicable to branch and project offices of a
foreign company in India.
The qualifying company will be required to constitute a CSR Committee
consisting of 3 or more directors.
The CSR Committee shall formulate and recommend to the Board, a
policy which indicates the activities to be undertaken, allocate resources
and monitor the CSR Policy of the company.
If the company did not spend CSR, it has to disclose the reason for not
spending. Non-disclosure or absence of the details will be penalized from
₹ 50,000 to ₹ 25 lakh or even imprisonment of up to 3 years.
India is the first country in the world to enshrine corporate giving into law.
9. [9]
2.6 How is it beneficial to companies?
Consumers are socially conscious - Many consumers actively seek out
companies that support charitable causes. Therefore CSR attracts
customers.
Competitive advantage - Businesses that show how they are more socially
responsible than their competitors tend to stand out.
Boosts employee morale - CSR practices have a significant impact on
employee morale, as it reinforces his confidence on Company’s empathy.
2.7 What is the effect of legislation?
More spending - The private sector’s combined charitable spend increased
from 33.67bn rupees in 2013 to around 250bn rupees after the law’s
enactment.
Mainstreaming Charity - It has brought CSR from the fringes to the
boardroom. Companies now have to think seriously about the resources,
timelines and strategies needed to meet their legal obligations.
But it also has its shortcomings:-
Non-compliance - A survey found that 52 of the country’s largest 100
companies failed to spend the required 2% last year.
A smaller proportion has gone further to allegedly cheating by giving
donations to charitable foundations that then return the fund minus a
commission.
Roll back - Charitable spending was used as a big reputation builder for
family-led conglomerates with a long tradition of philanthropy. Now it’s
just about legal compliance. Many companies that were giving more than
2% have scaled back their spending.
Inequality - One of the challenges for the corporate sector is finding
credible charity partners to support. So the bigger charities that are more
well-known are being flooded with money leaving out smaller charities.
Compounding the problem is that smaller charities often lack the capacity
to cope with companies’ bureaucratic and operational demands.
Geography - There is also a geographic bias under the 2% law, with
companies funding projects closer to where they are based. Therefore
more industrialized states are winning over poorer, more remote regions
where development aid is acutely needed.
Politics - Some companies looking to gain goodwill by backing
government-led projects rather than independent initiatives.
10. [10]
CHAPTER:-3
Coal India Limited
3.1 Introduction
Coal India Limited (CIL) as an organized state owned coal mining corporate came
into being in November 1975 with the government taking over private coal mines.
With a modest production of 79 Million Tones (Mt) at the year of its inception CIL
today is the single largest coal producer in the world. Operating through 82 mining
areas CIL is an apex body with 7 wholly owned coal producing subsidiaries and 1
mine planning and Consultancy Company spread over 8 provincial states of India.
CIL also fully owns a mining company in Mozambique christened as 'Coal India
Africana Limitada'. CIL also manages 200 other establishments like workshops,
hospitals etc. Further, it also owns 26 technical & management training institutes
and 102 Vocational Training Institutes Centres. Indian Institute of Coal
Management (IICM) as a state-of-the-art Management Training 'Centre of
Excellence' - the largest Corporate Training Institute in India - operates under CIL
and conducts multi-disciplinary management development programmes.
CIL having fulfilled the financial and other prerequisites was granted the Maharatna
recognition in April 2011. It is a privileged status conferred by Government of India
to select state owned enterprises in order to empower them to expand their
operations and emerge as global giants. So far, the select club has only seven
members out of290 Central Public Sector Enterprises in the country (as on
31/03/2014, source-DPE).
3.2 Vision:-
To emerge as a global player in the primary energy sector committed to provide
energy security to the country by attaining environmentally & socially sustainable
growth through best practices from mine to market.
3.3. Mission:-
To produce and market the planned quantity of coal and coal products efficiently
and economically in an eco-friendly manner with due regard to safety, conservation
and quality.
11. [11]
3.4. Unmatched Strategic Relevance of CIL:-
Produces around 84% of India's overall coal production
In India where approximately 55% of primary commercial energy is coal
dependent, CIL alone meets to the tune of 40% of primary commercial energy
requirement
Commands nearly 74% of the Indian coal market
Feeds 98 out of 101 coal based thermal power plants in India
Accounts for 76% of total thermal power generating capacity of the Utility
sector
Supplies coal at prices discounted to international prices
Insulates Indian coal consumers against price volatility
Makes the end user industry globally competitive
Plays a key role in "India Growth Story" and making India incorporate
globally competitive
3.5. Subsidiary Companies
Coal India is a holding company with seven wholly owned coal producing
subsidiary companies and one mine planning & consultancy company in India while
one subsidiary in Africa.
Eastern Coalfields Limited (ECL), Sanctoria, West Bengal
Bharat Coking Coal Limited (BCCL), Dhanbad, Jharkhand
Central Coalfields Limited (CCL), Ranchi, Jharkhand
South Eastern Coalfields Limited (SECL), Bilaspur, Chhattisgarh
Western Coalfields Limited (WCL), Nagpur, Maharashtra
Northern Coalfields Limited (NCL), Singrauli, Madhya Pradesh
Mahanadi Coalfields Limited (MCL), Sambalpur, Odisha
Coal India Africana Limitada, Mozambique
The consultancy company is Central Mine Planning and Design Institute Limited
(CMPDIL), Ranchi, Jharkhand.
North Eastern Coalfields (NEC) a small coal producing unit operating in
Margherita, Assam is under direct operational control of CIL.
Apart from the above,
Mahanadi Coalfields Limited (MCL) has 03 subsidiary companies viz.
(i) MJSJ Coal Ltd.
(ii) MNH Shakti Ltd.
(iii) Mahanadi Basin Power Ltd.
South Eastern Coalfields Ltd has 02 subsidiaries Companies viz.
(i) Chhattisgarh East Railway Ltd.
(ii) Chhattisgarh East-West Railway Ltd.
12. [12]
CHAPTER:-4
Mahanadi Coalfields Limited
4.1 Introduction
Mahanadi Coalfields Limited (MCL) is one of the major coal producing company of
India. It is one of the eight subsidiaries of Coal India Limited. Mahanadi Coalfields
Limited was carved out of South Eastern Coalfields Limited in 1992 with its
headquarters at Sambalpur. It has its coal mines spread across Odisha. It has total
seven open cast mines and three underground mines under its fold. It has two
coalfields, Talcher & IB Valley in Orissa. Talcher Coalfield area is approximately
25 KMs from District Headquarter, Angul.
MCL has two subsidiaries with private companies as a joint venture. The name of
these companies are MJSJ Coal Limited& MNH Shakti Ltd.
There are 45 sanctioned mining projects in MCL with a capacity of 190.83 Mty of
coal. The total capital outlay of 45 projects is ₹6,076.78 crore (US$930 million) &
out of which 28 with a total capacity of 73.98 Mty have been completed by April
01st, 2009 with a sanctioned capital investment of ₹2,348.61 crore (US$360
million). Out of the 28 completed projects, 2 have been exhausted (Balanda OCP &
Basundhara-East OCP). One Expansion Project, namely, Lajkura Expansion (2.50
Mty, 1.50 Mty incr.) Is going to be approved within a short period of time.
MCL is the second largest coal producing entity of Coal India Limited (CIL), a state
owned coal mining corporate and the single largest coal producer in the world, with
'Maharatna' recognition. Headquartered at Kolkata, CIL has operations in eight
Indian states including West Bengal, Jharkhand, Chhattisgarh, Madhya Pradesh,
Maharashtra, Assam, UP and Odisha. They have one international unit at
Mozambique.
MCL primarily cater to the needs of the power sector, through the production and
supply of coal, mined from a vast expanse of 2,723 sq.km, an estimated 24.89% of
the Indian coal reserves .They extract the coal via opencast mining and underground
mining. Currently, they have 53 sanctioned mining projects (with a capacity of
261.32 MT and a capital outlay of 12,514.27 crore rupees), of which 34 projects
13. [13]
have been completed. Two out of completed projects at Balanda and Basundhara -
East OCP, have been exhausted. The remaining 19 projects with a sanctioned
capacity of 161.33 MT and a capital outlay of 9,690.49 crore rupees, are ongoing.
Due to a continuous rise in the demand for coal, they are expanding to tap
unexplored deposits in the vicinity of our existing mining areas. Further, in the
future, they intend to emerge as an integrated energy firm, by diversifying into
power generation, power transmission, and solar power. In this way they will
continue to fuel progress in the state of Odisha and our country
4.2 Formation Of MCL :-
4.3 Vision:-
"To be one of the leading energy suppliers in the world through best practices from
mine to market"
4.4 Mission:-
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"To produce and market the planned quantity of coal and coal products efficiently
and economically in an eco-friendly manner with due regard to safety, conservation
and quality.”
4.5 Values:-
Business integrity
Ethical values
Professionalism
4.6 Administrative Setup of MCL
4.7 Coal Reserve In India:-
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4.8 Coalfields in Odisha: - Odisha state has two coalfields. Yet its share in the reserve
are so far established in the country amounts to 24.72 % (75.799 BT).
Talcher Coalfield (Geological Reserve 50.968 BT as on 01.04.2015)
Ib-Valley Coalfield (Geological Reserve 24.830 BT as on 01.04.2015)
Talcher Coalfields
Source- http://www.mcl.gov.in/images/talcher.gif
IB Valley Coalfields
Source-http://www.mcl.gov.in/images/ibval.gif
.
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4.9 MCL’s Policy for Corporate Social Responsibility (CSR)
I. PREAMBLE
The concept of Corporate Social Responsibility has gained prominence from all
avenues. Organizations have realized that Government alone will not be able to get
success in its endeavor to uplift the downtrodden of Society. With the rapidly
changing corporate environment, more functional autonomy, operational freedom
etc., MCL has adopted CSR as a strategic tool for sustainable growth. For MCL in
the present context, CSR means not only investment of funds for social activity but
also Integration of Business Processes with Social Processes.
II. INTRODUCTION
The Mines of MCL and its HQ are located in 4 Districts of Odisha and relatively in
isolated areas with little contact to the outside society. Mining of coal has profound
impact on the people living in and around the areas where the mines are established.
The obvious impact of the introduction of any production activity in such areas,
change the traditional lifestyle of the original inhabitants and indigenous
communities and also change the socio-economic profile of the Area. Hence, the
primary beneficiaries of CSR should be land ousters, PAP and those staying within
the radius of 25 KMs of the Project. Poor and needy section of the society living in
different parts of Odisha should be second beneficiaries. In the aforesaid backdrop,
Policy on Corporate Social Responsibility of MCL has been framed after
incorporating the features of the Companies Act, 2013 and as per notification issued
by Ministry of Corporate Affairs, Government of India on 27.02.2014 as well as
DPE Guidelines and broadly covers the following:-
(a) Welfare measures for the community at large, so as to ensure the poorer section
of the Society derived the maximum benefits.
b) Contribution to the society at large by way of social and cultural development,
imparting education, training and social awareness especially with regard to the
economically backward class for their development and generation of income to
avoid any liability of employment.
c) Protection and safeguard of environment and maintaining ecological balance.
17. [17]
III. OBJECTIVE
The main objective of CSR Policy is to lay down guidelines for MCL to make CSR
a key business process for sustainable development for the Society. It aims at
supplementing the role of the Government in enhancing welfare measures of the
society based on the immediate and long term social and environmental
consequences of their activities. MCL will act as a good Corporate Citizen,
subscribing to the principles of Global Compact for implementation.
IV. AREAS TO BE COVERED
The poor and needy Section of the Society living in different parts of India would
normally be covered. The CSR Programme will also cover the existing components
of Special Corporate Plan (SCP) and Tribal Sub Plan (TSP) for development of the
SC and ST population besides development components for the entire population.
In respect of Areas of MCL for carrying out CSR activities, 80% of the budgeted
amount should be spent within the radius of 25 Km of the Project Site/Mines/Area
HQ/Company HQ and 20% of the budget would be spent within the State of Odisha
in which MCL is operating.
In case CSR budget of MCL is exhausted, the CMD of MCL may refer the
particular CSR activity/project/program to CIL which are considered to be emergent
/ important by the CMD.
V. ALLOCATION OF FUND
For MCL, fund for CSR should be allocated based on 2% of average net profit of
the company for the three immediate preceding financial years or Rs. 2.00 per tonne
of coal production of previous year whichever is higher.
The unspent amount in CSR budget in a particular year will not lapse and shall be
added with CSR budget of subsequent years for MCL.
VI. SCOPE
As per Schedule VII of the New Companies Act, 2013 the following should be the
Scope of Activities under Corporate Social Activities:
i. Eradicating hunger, poverty and malnutrition, promoting preventive health care
and sanitation including contribution to the Swachh Bharat Kosh set-up by the
18. [18]
Central Government for the promotion of sanitation and making available safe
drinking water;
ii. Promoting education, including special education and employment enhancing
vocation skills especially among children, women, elderly, and differently abled and
livelihood enhancement projects;
iii. Promoting gender equality, empowering women, setting up homes and hostels
for women and orphans, setting up old age homes, day care centres and such other
facilities for senior citizens and measures for reducing inequalities faced by socially
and economically backward groups;
iv. Ensuring environmental sustainability, ecological balance, protection of Flora
and Fauna, animal welfare, agro-forestry, conservation of natural resources and
maintaining quality of soil, air and water including contribution to the Clean Ganga
Fund set-up by the Central Government for rejuvenation of river Ganga;
v. Protection of national heritage, art and culture including restoration of buildings
and sites of historical importance and works of art; setting up public libraries,
promotion and development of traditional arts and handicrafts;
vi. Measures for the benefit of armed forces veterans, war widows and their
dependents;
vii. Training to promote rural sports, nationally recognized sports, Paralympics
sports and Olympic sports;
viii. Contribution to the Prime Minister's National Relief Fund or any other fund set
up by the Central Government for socio-economic development and relief and
welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes,
minorities and women;
ix. Contributions or funds provided to technology incubators located within
academic institutions which are approved by the Central Government;
19. [19]
x. Rural development projects;
xi. Slum area development (declared as such by the Central or State Government).
VII. IMPLEMENTATION
a) The investment in CSR should be project based and for every project time framed
periodic mile stones should be finalized at the outset. The fund allocation for
undertaking different project under schedule VII for different Area (including HQ)
shall be done at the beginning of the year and shall be approved by the Board basing
on the recommendation of BSC. However, 20 % would be spent for the people/
organization of peripheral areas and amount would be utilized as per DoP vested
with MCL management with an intimation to State/District Authority to avoid
duplicacy of work. All the CSR work at Area level will be undertaken only with
prior approval of Director (Personnel), MCL and put up to CSR Sub-committee of
MCL HQ for review once in two months basis with an intimation to State/District
Authority to avoid duplicacy of work.
b) Project activities identified under CSR are to be implemented by Specialized
Agencies. Specialized Agencies could be made to work singly or in tandem with
other agencies. Specialized agencies would include:
i. Community based organization whether formal or informal
ii. Elected local bodies such as Panchayats
iii. Voluntary Agencies (NGOs)
iv. Institutes/Academic Organizations
v. Trusts, Mission etc.
vi. Self-help groups
vii. Government, Semi-Government and Autonomous Organizations
viii. Standing Conference of Public Enterprises (SCOPE)
ix. Mahila Mandals/Samitis and the like
x. Contracted agencies for civil works
xi. Professional Consultancy Organization etc.
c) Activities related to Sustainable Development will form a significant element of
the total initiatives of CSR. Such activities should come under the 3 UN Global
Compact Principles pertaining to the Environment Business are asked to
i. Support a precautionary approach to environmental challenges.
ii. Undertake initiatives to promote greater environmental responsibility.
iii. Encourage the development and diffusion of environmentally friendly
technologies.
20. [20]
VIII. INSTITUTIONAL ARRANGEMENT
a) All proposals under CSR activity would be examined by the CSR Committee
keeping in view the Companies Act, 2013, latest DPE Guideline together with cost
benefit analysis.
b) Based on the recommendation of the Company Executives of CSR discipline,
CSR project proposals/ Programmes/Activities shall be deliberated in the meeting of
CSR Committee consisting of HODs/ Senior Executives of different discipline, who
in turn would examine and submit its recommendation to Director (P&IR)/Director
(Personnel), as the case may be and thereafter based on the recommendation of
Director (P&IR) / Director (Personnel), approval of the Competent Authority shall
be accorded.
c) MCL shall constitute a Board Level Committee on CSR consisting of three or
more Directors, out of which at least one Director shall be an Independent Director.
d) The activities of the CSR Officials / Committee at HQ and Project Level will also
involve the following:
i. Interact with the concerned State Officials/ Government Officials, if required
to confirm the areas for undertaking activities under CSR and ensure to avoid
duplicity of the job.
ii. To decide the priority of the activities to be undertaken under CSR.
iii. To interact with the CSR Implementing agencies for determining the
activities to be undertaken
iv. The Committee will monitor and review the progress of activities undertaken/
completed from time to time.
e) Delegation of Power (DoP) for according approval of any CSR project proposal
in terms of the directive circulated by CIL and decision taken in FDs meeting earlier
would be as under:
(i) In respect of MCL, CSR projects /programmes / activities up to Rs. 25.00
lakhs (Rupees Twenty Five Lakhs) shall be approved by the CMD of MCL
and proposals beyond Rs. 25.00 lakhs shall be approved by MCL Board on
recommendation of CSR and Sustainable Development Committee of MCL
Board.
(ii) Project Proposal up to ₹ 10.00 lakhs shall be approved by Area CGM / GM
on the recommendation of Area level CSR Committee. The Area level CSR
Committee shall function under the Chairmanship of CGM/GM of Area.
Project Proposal more than Rs. 10.00 lakhs up to Rs. 15.00 lakhs shall be approved
by Director-in-charge of CSR/Director (Personnel) on the recommendation of CSR
Committee at HQ. The CSR Committee at HQ shall function under the
Chairmanship of Director-in-charge of CSR / Director (Personnel).
21. [21]
Project proposal more than ₹ 15.00 lakhs up to ₹ 25.00 shall be approved by CMD,
MCL on the recommendation of CSR Committee at HQ.
(iii) CSR Department of MCL will act as NODAL Department. under the
guidance of Director (Personnel) of MCL and would put up all CSR Projects/
Programmes/ Activities to the CSR Committee after obtaining
recommendation from different Areas of MCL or State administration/
RPDAC as the case may be.
f) Area / RPDAC / MCL, HQ shall act at tandem in order to avoid duplication of
activities/projects. At the same time activities undertaken by State / Central
authorities on deposit basis shall be a part of the MCL CSR activities.
IX. BASE LINE SURVEY & DOCUMENTATION
a) The CSR activities for high value project (more than Rupees one crore), base line
survey may be carried out and cost benefit analysis has to be ascertained through the
above survey. The base line survey may be carried out by an External Agency
having proper credential in the field of social activities, as deemed fit by the CSR
Committee.
b) The CSR activities for providing infrastructural facilities like medical college,
institution, where social benefit is involved, baseline survey is not required. The
cost benefit and justification for any project has to be ascertained.
c) Meticulous documentation relating to CSR approaches policies, programmes,
expenditures, procurement etc. should be prepared and put in the Public Domain,
(particularly through the internet) and made available to the National CSR Hub.
X.MONITORING
a) The CSR Cell constituted at MCL level should be headed by an E/8 level
Officer and will prepare the Annual Report on CSR Activities for placing the
same before CSR & Sustainable Development Committee at the beginning of
the year.
b) Board Level Committee on CSR and Sustainable Development of MCL shall
review the implementation of CSR activities in every six months and
recommend the amount of expenditure to be incurred on CSR activities.
c) The CSR Committee shall monitor the Corporate Social Responsibility Policy
from time to time.
d) If the Company fails to spend the allocated budget in a particular year, the
Company shall specify the reasons for not spending the amount in the
Directors Report.
22. [22]
e) MCL shall include a separate chapter in the Annual Report on the
implementation of CSR activities/project including the fact relating to
physical and financial progress.
f) Utilization Certificate with statement of expenditure duly certified by a
Practicing Chartered Accountant/Authorized Auditor/District Collector will
be submitted by the Organization/ Institution to whom CSR fund is allocated.
XI.UPKEEP AND MAINTENANCE OF ASSETS CREATED
Maintenance of Assets created under CSR would be the Responsibility of the
concerned State Government, local representative of the Society and concerned
Non-Government Organization (NGO) through which the CSR activities are
implemented and an undertaking/consent would also be taken.
XII.REFLECTION OF CSR ACTIVITIES
Annual audit of all activities undertaken by the Company would be done by local
authorized auditor. The CSR activities will be reflected in the Annual Report and
Accounts of MCL under Social Overhead (CSR). The Committee constituted in the
area will inspect all sites and reflect the same to CSR Cell for their information,
record and further action.
XIII.CONCLUSION
The above guidelines would form the framework around which the CSR activities
would be undertaken. MCL should have specific activities to adopt mostly in their
close vicinity of the projects extendable up to the affairs of the State i.e. Odisha to
which it is belonging. This Policy will supersede earlier Policies relating to CSR
and will come into force
23. [23]
CHAPTER - 5
Analysis CSR by MCL in Last Five Years:-
5.1 Background of CSR activities undertaken by MCL in last five years:-
In 2013 the law was passed by the ministry of corporate affairs that minimum 2% of
companies profit after tax should be spent on CSR activities for the development of
society. Company was already engaged in performing CSR activities even when
there was no compulsion by the law. But after the imposition of law company
streamlined its social initiatives in CSR policy and identified some focus areas that
aim to positively and holistically impact society.
Main focus areas of MCL in regard to CSR are:
Health care
Education
Electricity
Employment Generation
Environment
Infrastructure
Water supply
Social Empowerment
Environment
Protection of national heritage, art and culture
Sports development
Swachh Vidyalaya Abhiyan
5.2 Total amount spend on corporate social responsibility by Mahanadi
Coalfield Limited in last 5 years (2012-13 to 2016-17) Amount in lakhs
Sector Years 2012-13 2013-14 2014-15 2015-16 2016-17 Total
Education and
Skill
Development
111.52 176.11 395.66 271.46 12024.92 12979.67
Environment 69.49 190.79 36.16 131.53 79.64 507.61
Health &
Sanitation
264.52 446.14 147.05 1401.14 62.85 2321.7
Infrastructure 112.13 5539.02 689.89 736.24 855.23 7932.51
Road 1411.51 2134.1 2689.01 1261.04 633.04 8128.7
Sports 3.68 781.38 734.39 621.88 456.01 2597.34
Water Supply 499.29 1448.19 779.65 864.91 732.19 4324.23
Miscellaneous 85.43 432.28 658.38 105.78 42.1 1323.97
Swachh
Vidyalaya
Abhiyan
-- -- -- 13070.12 1774.34 14844.46
Total 2557.57 11148.01 6130.19 18464.1 16660.32 54960.19
24. [24]
5.3Analysis of CSR spending and activities taken sector wise
5.3.1 Education and Skill Development:-
MCL provides quality education not only to its employees‟ wards but also to the
general public. It extended education grants to 20 privately managed schools which
are in and around the mining areas. It also provide fees for a period of one year or
more to the poor and meritorious, preferably girl students of the school in the
operational area of the Company to enable them to get uninterrupted education.
Amount in lakhs
The spending in education sector has been approximately same for 4 year; i.e. 2012-
13 to 2015-16.But in 2016-17 financial year it has been increase very high as MCL
declared to set up a medical college and hospital in Talcher at a cost of ₹ 492.62
crores.
Major activities:-
Construction of Mahanadi Institute of Medical Science Research (Medical
College and Hospital) at Talcher at a cost of 492.62 crores
Construction of Nursing School cum Hostel at Central Hospital IB valley area
, Jharsuguda
Construction of 150 seated Ladies Hostel for Sambalpur University at a cost
of ₹ 547.27 lakhs
Construction of 150 seated Ladies Hostel at VSSUT Burla. Sambalpur at a
cost of ₹ 169 lakhs
Construction of 3 nos. of 100 seated ST girls hostel in Jharsuguda
Distribution of cycle to the girls students of peripheral village of Lakhanpur
Area, Jharsuguda
111.52 176.11 395.66 271.46
12024.92
0
2000
4000
6000
8000
10000
12000
14000
2012-13 2013-14 2014-15 2015-16 2016-17
Total Spend on Education and Skill Development
25. [25]
Renovation of the School building of Govt. Hindi High School, Sambalpur at
a cost of 39.49 lakhs
Construction Of Saraswati Sishu Mandir At Bandhabahal at a cost of ₹ 64.28
lakhs
Construction of School building( Additional room) of Saraswati Sishu Mandir
at Bandhabahal at a cost of ₹ 57.97 lakhs
5.3.2Health Care and Sanitation:-
MCL always wanted to provide better health care facilities to its people. It provides
primary and secondary healthcare services through 14 dispensaries, 5 area hospitals
and 2 Central Hospitals, namely Nehru Shatabdi Central Hospital, Talcher (115
bedded) and Central Hospital, IB Valley (150 bedded). MCL conducts regular
health check-ups through Mobile Health Vans with medical staff, doctors & free
medicines on weekly basis in all peripheral villages of each area.
Amount in lakhs
As per the graph the health care and sanitation amount has been more in 2015-16 as
compare to other 4 years. It spent about 14 crore in 2015-16.MCL don’t give
interest so much on health care but by establishing 500 bedded hospital in its under
construction MIMSR(Medical College & Hospital) it will boost health care facility
in Angul and its adjoining districts.
Major activities:-
Construction of 100 bedded cardiac institute at Jharsuguda.
MCL launched a programmed named Clinic on Wheels. It delivers multiple
health care services to unserved & underserved area through a mobile medical
unit.
264.52
446.14
147.05
1401.14
62.85
0
200
400
600
800
1000
1200
1400
1600
2012-13 2013-14 2014-15 2015-16 2016-17
Total Amout Of Spend on Health Care and Sanitation
26. [26]
Providing a 64 Slice CT Scan Machine costing ₹ 4 crores to the VIMSAR,
Burla, Sambalpur
Setting up of a Medical college and hospital in the name of Mahanadi
Institute Medical Science and Research at Talcher project cost of ₹ 492.62
crores
5.3.3 Water Supply:-
MCL has taken various measures to provide drinking water through installation and
repair of tube wells, digging and renovation of wells, construction of water tanks
etc. It has also provided drinking water in summers through tankers villages and
municipals.MCL also provided piped drinking water supply to various villages. It
also improved Water supply System of Brajrajnagar Town, Jharsuguda.
Amount in lakhs
MCL give more emphasis on water facility in rural areas as it is an important sector
for villagers. A large chunk of money has been spent for supplying of drinking
water in peripheral villages during last 4 years.
Major Activities:-
Water supply through tanker of Hingula Area at a cost of ₹ 230.87 lakhs
5.3.4 Infrastructure: - It has taken various measures to develop infrastructural
facilities for providing electricity through Solar Lights and through high mast
ground mounted lighting to the nearby villages. It always give emphasis on the
499.29
1448.19
779.65
864.91
732.19
0
200
400
600
800
1000
1200
1400
1600
2012-13 2013-14 2014-15 2015-16 2016-17
Total Amout spend on Water supply
27. [27]
construction of community centres, the construction and renovation of ponds, and
the construction of shopping complexes
Amount in lakhs
MCL spent about 56 crores in infrastructural development in 2013-14 which is the
highest amount from all the five year. Various large construction project comes
under different sector so there is not so much works under this sector. Thats why the
spending are less.
Major Activities:-
Ropeway project from Nehru park to Gandhi Minar at Hirakud dam,
Sambalpur at a cost of ₹ 5 crores
Construction of Jharsuguda bus stand
Construction of 11 community centres in Sundargarh district
Renovation of Soubbhagya Sagar Big Tank of Talcher Municipality at a cost
of ₹ 322.48 lakhs
Provide 15 nos. of Solar street lights with battery & fittings to villages of
Basundhara and Garjanbhal area
5.3.5 Road Construction:-
It contributes towards repairing, widening and strengthening of black topped road
and bypass roads.
112.13
5539.02
689.89 736.24 855.23
0
1000
2000
3000
4000
5000
6000
2012-13 2013-14 2014-15 2015-16 2016-17
Amout spent on Infrastructure
28. [28]
Amount in lakhs
Major Activities:-
Construction of flyover (over rail line) at Ghatapada, Talcher
Widening of two lane Road of Four lane road from Bankibahal in BG Area of
MCL to Kanika Railways Siding.
Widening and strengthening of Balinga-Taparia Road 2.24 KM to 24.20 KM.
at a cost of 2691.33 lakhs
Construction of Ujjalpur bye pass Road in Sundargarh State at a cost of
1858.22 lakhs
Construction of Road over bridge (ROB) at the level crossing near
Ghantapada village before NTPC conveyor on the road from Handidhua
chowk to NALCO chowk in Talcher Coalfields at a cost of ₹ 3494.93 lakhs
5.3.6 Environment:-
1411.51
2134.1
2689.01
1261.04
633.04
0
500
1000
1500
2000
2500
3000
2012-13 2013-14 2014-15 2015-16 2016-17
Amout spent on road construction
29. [29]
Amount in lakhs
The amount spend on environment sustainability has been increasing and decreasing
year by year.
Major activities:-
In year 2012-13 MCL has planted 31,800 saplings of mixed indigenous
species over back filled internal dumps and other vacant places.
In 2014, MCL has set up its first Solar Power Plant of 2MW capacity at its
headquarters complex Anand Vihar, Burla, Odisha.
5.3.7 Sports:-
MCL has given equal importance toward improvement of sports and culture in
locality .It has done exceptional contribution towards promotion of sports activities
in nearby villages by conducting tournaments like Football, Kabaddi and Kho-Kho
etc. It also grant financial aids to registered clubs and institutions to promote sports.
MCL is sponsorship of Cultural event to restore Indian Cultural Traditions and
Values.
69.49
190.79
36.16
131.53
79.64
0
50
100
150
200
250
2012-13 2013-14 2014-15 2015-16 2016-17
Total amount spent on environment
30. [30]
Amount in lakhs
Major Activities:-
Construction of sport complex at Burla, Sambalpur at a cost of 25 crores
MCL promoting Hockey in Odisha in partnership with IDCO by owning
Kalinga Lancers team in Hockey India League since 2013-14 at a cost of 18
crores
Construction of Sport Complex cum District Stadium in Jharsuguda at a cost
of 13 crore
5.2.8 Swachh Vidyalaya Abhiyan:-
Amount in lakhs
IN the year 2014, The Ministry of Human Resource Development, Government of
India launched ‘Swachh Bharat Swachh Vidyalaya’ (SBSV) initiative to ensure that
all schools in India have access to separate functional toilets for boys and girls.
After that MCL take Swachh Vidyalaya Abhiyan as a CSR sector. In 2015-16 it
3.68
781.38
734.39
621.88
456.01
0
100
200
300
400
500
600
700
800
900
2012-13 2013-14 2014-15 2015-16 2016-17
Total Amout spent on sports
13070.12
1774.34
0
2000
4000
6000
8000
10000
12000
14000
2015-16 2016-17
Amout spent on SVA
31. [31]
spend 130.70 crores in constructing toilets in 14 districts of Odisha and in 2016-17
it decreased to 17.74 crores.
MCL has constructed 10546 toilets in 14 districts of Odisha
5.3.9 Miscellaneous:-
Mahanadi Coal Fields Limited always give emphasis on other miscellaneous
activities also. This activities includes like
Electricity
Lighting arrangement
Social empowerment
Women empowerment
Protection of National Heritage
Amount in lakhs
In the year 2012-13 MCL spent about 85 lakhs in miscellaneous activities
mentioned above which is increased by 500 % in 2013-14 and about 770 % in 2014-
15.
Then in the year 2015-16 it is decreased to 105.78 lakhs which is slightly more than
spending of 2012-13.
Major Activities:-
Lighting arrangement alongside the Sea Beach & Grand Road Puri and Puri-
Konark road.
85.43
433.48
658.38
105.78
42.1
0
100
200
300
400
500
600
700
2012-13 2013-14 2014-15 2015-16 2016-17
Amout spend on miscellaneous
32. [32]
Providing 9 Aqua guard water purifier cum chiller for 9 hostels of VIMSAR
Burla, Sambalpur
Providing 25 nos. of dustbin for Maa Samleswari Temple Sambalpur
Construction of cremation ground/ rajghat in Sambalpur
Donation of Rs 2.5588 Crores to Prime Ministers relief fund for the
rehabilitation activities in the flood affected area of Uttarakhand under CSR.
Prime Ministers relief fund
Sanskrit Kala Kendra at Sambalpur at a cost of 50.54 lakhs
5.4 Analysis overall CSR spending of MCL:-
MCL spend its CSR amount of last 5 year in following manner:-
Swachh Vidyalaya
Abhiyan, 14844.46,
27%
Education and Skill
Development,
12979.67, 24%
Environment,
507.61, 1%
Infrastructure,
7932.51, 14%
Water Supply,
4324.23, 8%
Sports, 2597.34, 5%
Health and
Sanitation, 2321.7,
4%
Miscellaneous,
1323.97, 2%
Road, 8128.7, 15%
CSR SPENDING SECTOR WISE
33. [33]
Mahanadi coalfields spend about Rs 549.60 crores in CSR during last 5 years.
Out of which 27% i.e. Rs 14844.46 lakhs was spent on building toilets in
school under Swachh Vidyalaya Abhiyan during last 2 years. If we keep aside
this spending then
I. MCL mainly give emphasis on Education and skill development,
construction of roads and infrastructural development. MCL spent Rs
12979.67 lakhs, 24% of total spending on education and skill development.
II. MCL also give emphasis on road and infrastructure so that it spent about
15% and 14% respectively. MCL spent 8128.7 lakhs on construction
renovation and maintenance of roads where 7932.51 lakhs was spent for
infrastructural development.
III. It also focus on giving safe drinking water to villages of the coalfields area
other nearby villages. It spent 8% of the total spending i.e. 4324.23 in water
supply.
IV. MCL spent 14844.46 lakhs in construction of toilets in government school
of Odisha during last 2 years i.e. during 2015-16 & 2016-17 under Swachh
Vidyalaya Abhiyan.
V. It spent 5% of total spending in promotion of sports.
VI. It spent 4% in healthcare and sanitation which is very low.
VII. Under miscellaneous category the company spent 2% i.e. 1323.97 lakhs in
various sector like
Electricity
Empowerment of SCs/STs/Sr. Citizens
Protection of National Heritage
Social Empowerment
Women Empowerment
VIII. It spent a less amount Rs 507.61 lakhs in environment sector. It is less than
1% of total spending.
5.5 Analysis of CSR spending year wise
In this study I have analyzed the CSR spending of Mahanadi Coalfield Limited year
wise.
5.5.1 CSR spending during the year 2012-13
Total amount spent on corporate social responsibility in the year 2012-13 was
2557.57 lakhs
34. [34]
Interpretation:-
I. According to above chart in the year it give more emphasis to road
connectivity in the year 2012-13 so that it spend about 55% i.e. 1411.51
lakhs in road sector.
II. Another major spending was in water supply which is 20% of total spending
amount to Rs 499.29 lakhs.
III. MCL spend 10% of total spending in health sector also which is a good
intention
IV. It does give much importance on education as it spend only Rs 111.52 lakhs
which is 4% of the total
V. MCL equal importance to infrastructure as education. It spend about same
amount in infrastructure which amount to 112.13 lakhs.
VI. In other sector like electricity, environment, sanitation, social empowerment,
sports, women empowerment MCL spent 15.03lakhs, 69.49 lakhs, 9.39lakhs,
0.5lakhs, 3.68lakhs, 25.35lakhs respectively
5.5.2 CSR spending during 2013-14
Total amount spent on corporate social responsibility in the year 2013-14 was
11148.01 lakhs.
111.52, 4%
15.03, 1%
69.49, 3%
255.13, 10%
112.13, 4%
1411.51, 55%
9.39, 0%
0.5, 0%
3.68, 0%
499.29, 20%
25.35, 1%
44.55, 2% CSR Spending during 2012-13 Education
Electricity
Environment
Health
Infrastructure
Road
Sanitation
Social Empowerment
Sports
Water Supply
Women Empowerment
Miscellaneous
35. [35]
Interpretation:-
I. According to above chart in the year it give more emphasis to infrastructural
development in the year 2013-14 as spend about 50% i.e. ₹ 5539.02 lakhs in
infrastructure sector
II. Another major spending was in road connectivity which is 19% of total
spending amount to ₹ 2134.1 lakhs. This was the highest spending last year with
55% of total amount.
III. MCL spend 13% of total spending in providing drinking water facility also
amount to ₹ 1448.19 lakhs
IV. In this year it also spent on sports ₹ 781.38 lakhs which is 7% of total
expenditure.
V. It also give ₹ 255.88 to Prime Minister National Relief Fund which is 2% of
total CSR expenditure.
VI. MCL did not give importance to major sector like education and skill
development. It only spent only 2% in this sector. In amount it was ₹ 174.91 and ₹
1.2 lakhs respectively
VII. MCL spent 2% in environment sustainability also.
VIII. It also spent about ₹ 436.33 lakhs in health sector also about 4% of total
spending.
IX. In other sector like electricity, empowerment of SCs/STs/Senior Citizens,
sanitation, social empowerment, women empowerment MCL spent ₹ 54.64
174.91, 2% 54.64, 0% 35,
0%
190.79, 2%
436.33, 4%
5539.02, 50%
255.88, 2%
2134.1, 19%
9.81, 0%
1.2, 0%
12.3, 0%
781.38, 7%
1448.19, 13%
6.67, 0%
67.79, 1%
CSR spending during 2013-14
Education
Electricity
Empower of SCs/STs
Environmental Sustainability
Healthcare
Infrastructure
Relief Fund
Road
Sanitation
Skill development
Social development
Sports
Water Supply
Women Empowerment
Miscellaneous
36. [36]
lakhs, ₹ 35 lakhs ,₹ 9.1 lakhs , ₹12.3 lakhs, ₹ 6.67 lakhs respectively. In
miscellaneous category spending was ₹ 67.79 lakhs .The total percentage
was 3%
5.5.3 CSR Spending during the year 2014-15
Total amount spent on corporate social responsibility in the year 2014-15 was
6130.19 lakhs
Interpretation:-
I. According to above chart in the year it give more emphasis to road
connectivity in the year 2014-15 as it spend about 44% i.e. ₹ 2689.01 lakhs in road
sector.
II. Another major spending was in water supply which was 13% of total
spending amount to ₹ 779.65 lakhs
III. MCL spend 11% of total spending in development and promotion of sport.
The CSR amount on this sector was ₹ 734.39 lakhs
395.66,
6%
597.54, 10%
36.16, 1%
65.67, 1%
689.89, 11%
2689.01, 44%
81.38, 1%
734.39, 12%
779.65, 13%
43.34, 1% 17.5, 0%
CSR spending during 2014-15
Education
Electricity
Environment Sustainability
Healthcare
Infrastructure
Road
Sanitation
Sports
Water Supply
Women Empowerment
Miscellaneous
37. [37]
IV. MCL equal importance to infrastructural sector. It spend ₹ 689.89 lakhs
which is 11% of total expenditure
V. The company also intended to provide electricity to village So it spend about
10% of total spending amount to ₹ 597.54 lakhs in this sector.
VI. It increased some spending in education sector. It spent ₹ 395.66 lakhs which
is 6% of total expenditure. Last year it was 2%.
VII. In other sector environment, healthcare, sanitation, women empowerment
MCL spent ₹ 36.16 lakhs, ₹ 65.67 lakhs, ₹ 81.38 lakhs, ₹ 43.34 lakhs respectively.
It was 5% of total spending.
VII In miscellaneous expenses it spend ₹ 17.5 lakhs only which is 0.28%
5.5.4 CSR Spending during the year 2015-16
Total amount spent on corporate social responsibility in the year 2015-16 was
18464.1 lakhs
Interpretation:-
I. In the year 2015-16 it give more emphasis on building toilet blocks in
school of Odisha under Swachh Vidyalaya Abhiyan by spending ₹
13070.12 lakhs which is 71% of total expenditure
4.3, 0%
255.58, 1% 16.31,
0%
131.53, 1%
7.27, 0%
1390.71, 8%
736.24, 4%
57.36, 0%
1261.04, 7%
10.43, 0%
15.88, 0%
621.88,
3%
13070.12, 71%
864.91, 5%
1.52, 0%
23.32, 0%
CSR spending during 2015-16
Education
Electricity
Empowerment of SCs/STs/Sr.Citizen
Environment Sustainability
Eradication of Poverty
Healthcare
Infrastructure
Protection of National Heritage
Road
Sanitation
Skill Development
Sports
Swachh Vidyalaya Abhiyan
Water Supply
Women Empowerment
Miscellaneous
38. [38]
II. Another major spending was in healthcare which is 8% of total spending
amount to ₹ 1390.71
III. MCL spend 7% of total spending in road construction and development.
The amount was ₹ 1261.04
IV. It does give much importance on education as it spend only ₹ 4.3 lakhs
which is 0.023 % of the total spending.
V. In development and promotion of sports it spend about 3% of total which
is ₹621.88 lakhs
VI. In infrastructural development also it spent about 4% which is equal to ₹
736.2 lakhs
VII. MCL spent 5% i.e. ₹ 864,91 lakhs for providing drinking water facility to
rural people
VIII. In electricity also it spend 1.3% amounts to ₹ 255.58 lakhs
IX. In other sector like empowerment of SCs/STs/Senior Citizens,
environment, eradication of poverty, protection of national heritage,
sanitation, skill development, women empowerment MCL spent ₹ 16.31 ₹
131.53 lakhs, ₹ 7.27 lakhs, ₹ 57.36lakhs, ₹ 10.43lakhs, ₹ 15.88 lakhs, ₹
1.52 lakhs respectively. Under miscellaneous expenses the spending was ₹
23.32 lakhs. The total expenditure in this category was about 1 %.
5.5.5 CSR Spending during the year 2016-17
Total amount spent on corporate social responsibility in the year 2016-17 was
16660.32 lakhs
39. [39]
Interpretation:-
I. In the year 2016-17, 72% 0f total expenditure belongs to education
development which is equal to ₹ 12010.72 lakhs.
II. It also spend a large amount in building toilets under Swachh Vidyalaya
Abhiyan by spending 11% of total expenditure amounts to 1774.34 lakhs.
III. MCL spend 9% of total spending rural development projects like road
infrastructure, electricity etc. The amount spend was ₹ 1488.27 lakhs
IV. It always give importance on sports promotion and development as it spend ₹
456.01 lakhs which is 3% of the total spending this year also
V. MCL spent 4% i.e. ₹ 732.19 lakhs for providing drinking water facility to
rural people.
VII. In other sector like environment, eradication of hunger, healthcare, protection
of national heritage, sanitation, skill development, welfare of SCs/STs, Women
empowerment MCL spent ₹ 79.64, ₹ 0.15 lakhs, ₹ 42.75 lakhs, ₹ 19.56 lakhs, ₹ 20.1
lakhs, ₹ 14.2 lakhs, ₹ 9.75 lakhs, ₹ 12.64 lakhs respectively. The total expenditure in
this category was about 1.1 %.
12010.72, 72%
79.64, 1%
0.15,
0%
42.75,
0%
19.56,
0% 1488.27, 9%
20.1, 0%
14.2, 0%
456.01, 3%
1774.34, 11%
732.19, 4% 9.75, 0% 12.64, 0%
CSR Spending during 2016-17
Education
Environmental Sustainability
Eradication of Hunger
Healthcare
Protection of National Heritage
Rural Development Projects
Sanitation
Skill Development
Sports
Swachh Vidyalaya Abhiyan
Water Supply
Welfare of SCs/STs
Women Empowerment
40. [40]
5.6 Over all CSR spending year wise:-
The CSR spending was comparatively low during 2012-13.Next year it increases
very much but then it decreased by 50%.During last two years it is very high
amount as compared to previous 3 years. As the out of total spending of 5 years
64% was spend during last 2 years. In 2015-16 it is the highest CSR spending
company in Odisha. After CSR regulation act the amount of CSR has been
increased. But it the year 2014-15 it is very low if compared with previous year. In
the previous year it was 11148.01 ₹ lakhs where as in 2014-15 it was ₹ 6130.19
lakhs
2012-13, 2557.57,
5%
2013-14, 11148.01,
20%
2014-15, 6130.19,
11%
2015-16, 18464.1,
34%
2016-17, 16660.34,
30%
CSR SPENDING OF MCL
Year Amount Spend(In
Lakhs)
Percentage
%
2012-13 2557.57 4.64
2013-14 11148.01 20.28
2014-15 6130.19 11.15
2015-16 18464.1 33.59
2016-17 16660.32 30.34
54960.19 100
41. [41]
CHAPTER-6
6.1 Findings
After analyzing the CSR spending sector wise and year wise it is found that
I. The CSR spending of MCL is not stable in any sector.it is diversified to
many sector. It spend in small project, medium project as well as large
project like medical college.
II. The spending has been changed from year to year.
III. It gives much importance to education, drinking water facility, road
construction, infrastructural development
IV. In last two year it give special importance on building toilets in schools of
Odisha under Swachh Vidyalaya Abhiyan
V. MCL is following all the provisions of CSR.
VI. MCL has a greater role in development of many sector in the concerned
districts of Odisha where the CSR amount is spending
6.2 Tentative suggestions and further research
To Academic Field:-
This study has been undertaken with modest resources. To substantiate the findings,
the sample size of interviews can be taken. Future research should also include a
wider demography, life style and awareness about CSR to assess the consumers’
perspective.
To Organizations:-
This study enrich the understanding of relationship between CSR & organization
shows the way to further research , whether instead of having separate CSR wing,
every employee working in the organization must be involved in volunteering
implementing CSR initiatives. Mandatory volunteering and involvement of each
and every employee in CSR activities will enhance already existing CSR benefits.
Organizations must involve their stakeholders in CSR implementation which will
help creating firm image and brand. Managers while making decisions about CSR
need to be more aware of stakeholders’ responses. CSR that cannot justify in the
eyes of employees, customers and shareholders may lead to criticism. While
observing secondary data it was clear that minimum amount is spent on
environment sustainability, social empowerment women empowerment. Due to
industries there is a lot of pollution occur so the company should spend more on this
segment. More spending in social empowerment and women empowerment will
boost economic growth of India so the company should think about it. More stable
& long term benefits to be looked at while making CSR frame work. CSR
expenditure can be wisely utilized on projects mohalla wise, community wise or city
wise. It requires huge systemic & focused implementation. Further, the practitioner
42. [42]
must bear in mind that instead of diverting funds to various causes to satisfy statute,
the firm must focus on single project or area & bring it down to its objective end,
the way yearly annual targets concerned with business.
6.3 Conclusion:-
CSR as a concept has been the focus of various deliberations and much research
over the past few years; and has come to occupy an important place in the academic
and business arena. Evolving all the time, it has morphed from a purely
philanthropic to a systemic and, finally, strategic activity.
India is the first country to have legislated CSR mandates. Others countries like
Sweden, Norway, UK, South Africa, Ghana and Ivory Coast follow some specific
codes for sustainable and socially accountable business practices, like Social Labor
Plan (SLP) and Local Content Law (LCL). The US, though it has a rich presence of
industrial firms and big corporates, has only some mandates for reviewing reports
on corporate spending. There is no strong legislation, as in India, for CSR spending.
CSR has opened new opportunities for all stakeholders (including the corporate
sector, government, not-for-profit organizations and the community at large) to
devise innovative ways to contribute to equitable social and economic development.
Currently, CSR in India is headed in a positive direction as there already exists
multitude of enabling organizations and regulatory bodies such as the Department of
Public Enterprises (DPE), Ministry of Corporate Affairs (MCA), and Indian
Institute of Corporate Affairs (IICA). These institutions have already set the wheels
in motion and are playing an important role in making CSR a widespread practice
Mahanadi Coalfields Limited must engage more and participate regularly with civil
society organizations so that capacity building at the grass-root level is
strengthened. Central and State legislations regulating non-profit sector need to be
more open and accommodating of genuine demands made by the donors.
The definition of terms like ‘education’, ‘relief for the poor’ etc. needs to be
expanded under the ITA. Judicial pronouncements on the above terms have proved
to be very restrictive and counter-productive. Fiscal laws and regulations need to be
more accommodating to the demands of social sector. Governance issues should be
given due importance as compliances can go a long way in ensuring corporate
governance of donor companies. At the same time, non-profit organizations should
also consider engaging with market players with a renewed vigor and not just
looking at the arrangement from a donor-recipient perspective. Successful social
business models can only be created and replicated when such organizations are
more professional, transparent and wish to scale up. More clarity is required with
respect to CSR Rules and other compliance requirements.
.
43. [43]
6.4 References:-
News Website:-
1. The Economic Times www.economictimes.indiatimes.com (Published Jul 14,
2015)
2. Business Standard, India's Leading Business Site www.business-standard.com
(Published May 17, 2016)
3. New Indian Express Website www.newindianexpress.com
4. The Hindu website www.thehindu.com (August 16, 2015)
5. The Times Of India website timesofindia.indiatimes.com (Sep 4, 2015)
6. Odisha Sun Times Bureau website odishasuntimes.com (September 3, 2015)
Websites:-
1. Mahanadi Coalfields Website www.mcl.gov.in
2. Coal India Website www.coalindia.in
3. World wide web www.wikipedia.org
4. Swachh Vidyalaya Abhiyan website www.swachhvidyalaya.com
5. CSR, Government of Odisha website www.csr.odisha.gov.in
6. World Coal Association website: http://www.worldcoal.org/
Books:-
1. The A to Z of Corporate Social Responsibility by Dr Wayne Visser
2. Corporate Social Responsibility in India by Sanjay K Agarwal, Chartered
Accountant
3. The Political Economy of Corporate Responsibility in India, Atul Sood and
Bimal Arora