24-02-09 It will be mandatory for public sector oil companies to spend a minimum of 2 % of their net profits on Corporate Social Responsibility (CSR) activities, Petroleum Minister Murli Deora said.
Replying to supplementaries during Question Hour in Rajya Sabha, he said state-owned oil firms including Oil and Natural Gas Corp (ONGC) and Indian Oil (IOC) had been spending 0.75-1 % of their net profit of CSR activities.

"In a meeting with heads of oil PSUs recently, it was resolved that with effect from next financial year, all oil PSUs will spend at least 2 % of the net profits of the previous year on CSR activities," he said.
Further, any amount allotted for CSR activities but not spent will be added to the next year's allocations, he said.

In 2007-08, Rs 246.70 crore was spent by oil PSUs on CSR activities including Rs 124.01 crore by ONGC and Rs 64.27 crore by IOC. Oil India Ltd spent Rs 28.93 crore on CSR activities in 2007-08, Hindustan Petroleum Rs 6.67 crore, Bharat Petroleum Rs 7.38 crore and GAIL Rs 15.44 crore.
In first nine months of 2008-09, ONGC spent Rs 59.96 crore and IOC Rs 25.71 crore on CSR activities. OIL spent Rs 12.73 crore, HPCL Rs 6.48 crore, BPCL Rs 12.93 crore and GAIL Rs 7.09 crore on CSR activities in April-December 2008-09.

Deora said his ministry cannot dictate private firms on spending on CSR but none of the private companies was spending anywhere near 2 % of net profit.