CSR for Nation Building to Achieve Viksit Bharat

PSUs have undertaken a wide range of impactful activities over the years — from environmental protection and women’s empowerment to rural development, education, healthcare, job creation and disaster relief

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Corporate Social Responsibility (CSR) in India today stands as a powerful bridge between business and social impact, channelling corporate resources into nation-building.

It reflects a maturing corporate conscience that aligns profit with purpose. Long before CSR became a legal obligation under Section 135, Companies Act, 2013, Public Sector Units (PSUs) had already started demonstrating their leadership and commitment to social responsibility — proving that business could be a force for inclusive growth.

Some of India's top-performing PSUs were granted the prestigious status of Maharatna (2010) and Navratna (1997), providing them with greater autonomy to compete in global markets. That same year marked a turning point for Corporate Social Responsibility (CSR) in India, especially within the Public Sector domain, by Department of Public Enterprises (DPE) through its April 2010 Guidelines. These Guidelines made CSR mandatory for profit-making PSUs and emphasized not just financial contribution, but strategic and accountable social investment.

In fact, from the financial year 2010-11 onwards, the DPE framework allocated 5 marks for CSR activities and another 5 marks for sustainable development as part of the overall performance evaluation of Central Public Sector Enterprises. This move was not only aimed at improving accountability but also at setting an example — that government-owned corporations were committed to the broader goal of nation-building.

While the intent was strong, implementation in the initial years proved challenging. Many PSUs struggled to utilize their CSR funds effectively. The primary hurdles included a lack of skilled CSR personnel, absence of clear strategies, reluctance to partner with NGOs, and a pervasive fear of audit scrutiny. These operational challenges led to underutilization of CSR budgets during the early phase of the mandate.