Health, nutrition now part of CPSEs’ CSR

Performance Contract

- Every CPSE accountable via performance contract

- CSR, procurement from MSMEs included for compliance by CPSEs

- CPSEs required to submit performance evaluation reports

New Delhi: The central government has approved ‘Health and Nutrition’ as the common theme for corporate social responsibility (CSR) activities by Central public-sector enterprises or undertakings (CPSEs or CPSUs) for 2023-24.

The Department of Public Enterprises (DPE), under the Ministry of Finance, has directed all administrative ministries and departments to instruct CPSEs under their respective administrative control for information and compliance, official sources told Bizz Buzz.

It may be mentioned here that for 2022-23 also the DPE had made ‘Health and Nutrition’ the common theme for CSR activities. CPSEs are mandated to comply with the DPE guidelines issued from time to time on CSR expenditure. The confirmation and verification of the compliance is done by the administrative ministry.

CPSEs’ performance in the CSR field has a bearing on its evaluation by the government. The memorandum of understanding (MoU), a mutually negotiated agreement between the management of CPSEs and the government, stipulates that the CPSE would achieve certain targets at the beginning of the financial year.

MoU is a major policy initiative of the government in facilitating the empowerment and enhancing the performance levels of the CPSEs, the sources said. It is aimed at providing greater autonomy to public-sector enterprises and a level-playing field vis-à-vis the private sector.

The management of a CPSE is made accountable to the government through the promise of a ‘performance contract.’ The government continues to exercise control as the principal shareholder over these CPSEs in setting MoU targets and through performance evaluation during and at the end of the year.

The government’s priorities and programmes such as CSR, procurement from micro and small enterprises, etc., are included for compliance by CPSEs.

Evaluation of MoUs of CPSEs is done at the end of the year on the basis of actual achievements vis-à-vis the MoU targets. CPSEs are required to submit performance evaluation reports on the basis of audited data along with annual accounts, balance sheet, etc., to the DPE through their administrative ministries or departments.