·PIB·15 marks·250–350 words

Discuss the role of Corporate Social Responsibility (CSR) spending by Central Public Sector Enterprises (CPSEs) in supplementing government welfare delivery, with reference to health-sector initiatives in the coal sector.

In this answer
  1. How CPSE CSR supplements welfare delivery
  2. Limitations to address

Mandated by Section 135 of the Companies Act, 2013, CSR obliges eligible companies — including CPSEs — to spend 2% of average net profits on social development [1]. In the coal sector, where Coal India Limited (CIL), its subsidiaries and NLCIL commit nearly ₹800 crore annually [2], CSR has evolved into a significant supplementary channel of welfare delivery, now being consolidated into a first-of-its-kind sector-wide CSR framework.

How CPSE CSR supplements welfare delivery

  • Filling tertiary-care gaps: Under the Thalassemia Bal Sewa Yojana, run with the Ministry of Health & Family Welfare, over 700 children have received free bone marrow transplants; the Minister's "One State, One Hospital" goal seeks to decentralise BMT access beyond metros [3].
  • Reaching neglected disease burdens: Project Nanha Sa Dil, a ₹9.37 crore initiative with the Sri Sathya Sai Trust, screens children for Congenital Heart Disease across four Jharkhand districts, addressing a condition where only a small fraction of affected children access surgery [4].
  • Off-budget financing: Recurring CSR outlays add welfare resources outside the Union Budget, and PSU-hospital partnerships supply specialist capacity the public system lacks locally.
  • Compensatory justice: Funds flow to mining-affected districts of Jharkhand, Chhattisgarh and Madhya Pradesh, partly offsetting the environmental and displacement costs borne by these communities [2].

Limitations to address

  • CSR is profit-linked and discretionary in choice of activity, hence unpredictable and unsuitable as a substitute for universal entitlements.
  • Historically fragmented, subsidiary-wise spending caused duplication and weak impact measurement — the rationale for a unified sector framework.
  • Benefits remain enclave-centric, concentrated near operational areas rather than by need.

CSR by coal CPSEs thus works best as a targeted complement — not a replacement — to programmes like PM-JAY, converting corporate obligation into measurable child-health outcomes. Institutionalising a sector-wide framework with common monitoring, convergence with National Health Mission priorities, and needs-based geographic spread would align such spending with SDG-3 and the Directive Principle under Article 47 of raising public health standards.

Sources

  1. 1Ministry of Corporate Affairs — Companies Act, 2013 (Section 135, CSR)statutory basis and 2% CSR mandate
  2. 2PIB — Empowering Communities through CSR: Significant Achievements in Healthcare~₹800 crore annual CSR by CIL, subsidiaries and NLCIL; health focus in mining regions
  3. 3PIB — Coal India's Thalassemia Bal Sewa Yojana Marks a Milestone700+ bone marrow transplants; "One State, One Hospital" goal
  4. 4PIB — CIL's subsidiaries ink MoUs with Sri Sathya Sai Health & Education Trust under 'Nanha sa Dil'₹9.37 crore CHD project, four Jharkhand districts, screening coverage

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