Review provisions on CSR spend by PSUs to avoid overlapping in areas under DMF: Par panel to govt

Noting that over Rs 15,500 crore was disbursed to states for projects under District Mineral Foundation (DMF), a parliamentary panel has asked the government to review mandatory provision of spending 80 per cent of CSR funds by companies in mining areas to avoid overlapping.

DMF has been set up in states under a mining Act to implement welfare projects from a portion of royalty of mining leases while PSUs are also mandated to spend 80 per cent of corporate social responsibility (CSR) funds in mining areas.

"Till August 2018, Rs 15,547.83 crore has been collected and disbursed to states to implement welfare schemes under PMKKKY.

"The committee, therefore, feels that in case of districts where DMF funds are disbursed, the requirement of utilisation of CSR funds in the same area for the same purpose requires deeper analysis for its prudent diversion to other need areas," Standing Committee on Coal and Steel said.

The committee, chaired by Chintamani Malviya said: "To avoid this unnecessary overlap, the committee desires that the government should review the mandatory provision of spending 80 per cent of CSR funds in mining areas where DMF funds are also spent so that under such circumstances, funds of CSR can be spent by PSUs in other areas where these would be more gainfully utilised."