- Why in news
- On 6 October 2026 (posted 10 October), the Third National Conference on CSR (NCCSR 2026) was inaugurated in New Delhi. A Comprehensive CSR Framework for Indian Coal Companies and the India CSR Factbook 2024–25 were released.
- What it is
- Section 135 of the Companies Act, 2013 makes CSR a legal duty for companies above set size limits. They spend a share of average net profits on Schedule VII activities, under a Board CSR Committee. The Indian Institute of Corporate Affairs (IICA) is an institute under the Ministry of Corporate Affairs that works on corporate governance, CSR and related policy.
- Organiser
- NCCSR 2026 was organised by the Indian Institute of Corporate Affairs, under the Ministry of Corporate Affairs.
- Report released
- The India CSR Factbook 2024–25 was released as a consolidated reference on India's CSR landscape.
- Coal sector framework
- A sector-specific framework was released to make coal-sector CSR more structured, need-based and outcome-oriented.
- Theme
- The conference theme was a shift from compliance to commitment, linked to Viksit Bharat.
- CSR Exchange Portal
- Companies were invited to register on the CSR Exchange Portal, which connects CSR stakeholders.
- CIL spend vs requirement
- From FY 2014-15 to FY 2025-26, CIL spent Rs 7,276 crore against a required Rs 5,795 crore.
- CIL local-area rule
- CIL's own policy puts at least 80% of annual CSR spend within 25 km of mines and establishments, with priority to Project Affected Areas.
- Sector-wide framework
- On 8 September the Ministry of Coal became the first Union Ministry to launch a sector-wide CSR framework for coal PSUs.
Don’t confuse with CSR Factbook vs CSR law: The Factbook is a reference compilation of CSR data. The legal duty comes from Section 135 of the Companies Act, 2013 and Schedule VII.
Don’t confuse with IICA vs MCA: IICA is an institute under the Ministry of Corporate Affairs. The Ministry is the policy-making department.
Don’t confuse with CIL's 80% rule vs Section 135: The 80% spend within 25 km of mines is CIL's own policy. It is not a requirement of the Companies Act.
Don’t confuse with CSR vs Community Development: CD under the 2005 policy was voluntary welfare around mines. CSR under Section 135 is a legal obligation.
Laws, judgments and statutory bodies: 30 Prelims questions since 2013 (what the law says, who chairs, legal basis). In Mains, 44 news-triggered questions, most in GS2, asking for provisions and challenges.
Why it matters
- Sector-specific frameworks can direct CSR funds to needs in resource-bearing areas such as coal regions.
- Aligning CSR reporting with the SDGs allows assessment of corporate contribution to development goals.
- Gives corporate welfare spending a legal, monitored base and ties it to local needs and national missions.
- Public sector firms like CIL show CSR can reach mining and tribal districts.
Problems
- CSR can become a compliance exercise, with spending not linked to local needs or outcomes.
- Weak monitoring and impact measurement limit accountability.
- Local-area focus can leave out other needy regions.
- Impact depends on audits and third-party evaluation, not just the amount spent.
Way forward
- Strengthen Board oversight and evidence-based project selection.
- Align CSR with sector priorities and SDGs, and report outcomes publicly.
- Use outcome-based monitoring, milestone-linked fund release and mandatory impact assessment.
- Align CSR across the sector, as the new coal framework attempts.
Put in your answer
Statutory CSR architecture: The framework combines statutory obligation with company-level responsibility, Board oversight, public disclosure and impact assessment.
Sector-specific CSR frameworks: IICA developed sector-specific CSR frameworks for the Ministry of Coal and Coal India Limited, an example of moving beyond uniform CSR.
CIL CSR spend: CIL spent Rs 7,276 crore against a requirement of Rs 5,795 crore over FY 2014-15 to FY 2025-26.
Impact assessment: CIL makes third-party evaluation mandatory for larger CSR projects, alongside internal, statutory and CAG audits.
- 2013Mains GS3 · Q1Challenges in implementing mandatory CSR under the Companies Bill 2013
- 2022Mains GS4 · Q6Critically examine whether CSR is efficient and sufficient for corporate responsibilities
- 2017Mains GS4 · Q4Analyse whether CSR makes companies more profitable and sustainable
- 2025Prelims Q4Whether RBI mandates BRSR for listed companies; BRSR disclosures are non-financial
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Comprehensive CSR Framework for coal companies and India CSR Factbook released; on-file CSR issue, but little for a statement to turn on.
Worth revising until Prelims 2028: most news questions come within two years of the event.