Coal India has introduced a new integrated framework for corporate social responsibility (CSR) spending, with 80% of the CSR budget to be directed towards priority areas in and around mining-affected communities. Prepared through the Indian Institute of Corporate Affairs (IICA), the framework shifts the focus from simply recording expenditure to assessing the actual outcomes and impact of CSR projects.
80% Budget Reserved for Mining Affected Areas
Under the new framework, 80% of the CSR budget will have to be spent in affected areas and villages located within a 25 km radius of mines, project sites, area headquarters or company headquarters. Land losers, project-affected persons and other local communities in need will be the primary beneficiaries. The remaining 20% can be used for development activities elsewhere within the state or states where the company operates.
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Focus Shifts From Spending to Outcomes
The framework seeks a more balanced distribution of CSR funds, with no more than around 40% of the annual CSR budget to be spent on any one type of project. A 12 step annual CSR cycle has been prescribed, beginning with need assessment and ending with impact evaluation. Two self-assessment indices have also been introduced to help companies assess the effectiveness of their CSR programmes.
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Health, Education and Livelihoods Get Priority
Health, nutrition and community welfare, including mobile medical units and maternal and child health programmes, have been included among the priority areas. Education-related spending can cover strengthening primary and secondary education, school infrastructure, digital classrooms and scholarships. Skill training for local youth and women, support for self-help groups, and agriculture and non agriculture based livelihood programmes have also been included.
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CSR Spending Norms Remained Linked to Profit and Coal Output
Coal companies are required to spend at least 2% of their average net profit of the preceding three financial years on CSR activities. In addition, the applicable CSR provision based on the previous year’s coal production will be taken into account, with the higher amount applying. Administrative expenses can account for a maximum of 5% of the total CSR expenditure in a financial year. The framework also provides for projects such as rural roads, community buildings, solar street lights, water conservation, plantation, waste management, sports facilities and programmes for SCs, STs, elderly people and women-led families. Central Coalfields Ltd (CCL), for instance, spent around Rs 37 crore on education and related activities under CSR in 2024-25.
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