PSUs spur impact across sectors through CSR activities

Public Sector Undertakings accounted for 26.23 per cent of the total CSR spending in FY 21-22, a recent CSR spending report revealed

Public sector undertakings (PSUs) are putting their might behind changing the world, creating the building blocks of development through rigorous corporate social responsibility (CSR) practices. While CSR is usually associated with corporate India, the sheer size of public sector companies positions them to make a much larger impact. PSUs are creating impact majorly across education and healthcare, while propelling inclusive growth, sustainable development and catering to the socio-economic needs of marginalized sections of society.

In fact, PSUs accounted for a whopping 26.23 per cent of the total CSR spent in FY 21-22, according to a recent CSR spending report. Public sector oil companies alone have been spending around 10 per cent of the total expenditure in India for the past three to four years. As per the Public Enterprises Survey, CSR expenditure of PSUs during the last three financial years stood at Rs 4,488 crore in 2020-21, Rs 5,088 crore in 2019-20 and Rs 3,873 crore in 2018-19. Reports by KPMG and CAG from 2021 revealed that PSU firms have consistently focused on furthering the cause of health and education through a major chunk of their CSR funds.

CSR activities are usually undertaken in regions where the PSUs or companies largely operate. Often, the allocated budgets also prioritize the focus areas of the Central government, such as a commitment to an open-defecation-free society under the Swachh Bharat Abhiyan, the Clean Ganga initiative, rural electrification, creating access to affordable healthcare, etc.