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CSR POLICY & PROCEDURE FOR PCCKL

PREAMBLE

Corporate Social Responsibility (CSR) is an effective way to build trust and strategic relationship with public and local bodies.  It is primarily to support society by contributing to the socio-economic progress and to ensure co-operation in the neighborhood community.

OBJECTIVE

The objective of CSR initiative by PCCKL is to impact the lives of the disadvantaged people residing near Terminals and pipeline route by supporting and engaging them in activities that improve their wellbeing. PCCKL is also dedicated to support initiatives for protection of environment and ecological balance.

CSR COMMITTEE

The CSR Committee shall formulate and recommend to the Board for approval, a Corporate Social Responsibility Policy, which shall indicate the activities to be undertaken by the Company as specified in Schedule VII of the Companies Act, 2013.  The Committee shall also recommend to the Board for approval, the aggregate amount of expenditure to be incurred on the above activities, in a given financial year.

PCCKL CSR Committee consists of three directors, out of which at least one director shall be an independent director. The Committee shall monitor the implementation of the CSR activities undertaken by PCCKL periodically and ensure that these activities are related to the Schedule VII of the Companies Act 2013 and amendments thereof.

GUIDELINES FOR SELECTION OF PROJECTS

  1. PCCKL shall identify CSR projects or programs or activities to benefit people residing in districts where PCCKL pipeline is passing through. Apart from the projects identified by the Company, PCCKL shall contribute to the projects/ activities of national interest which are specified in the Schedule VII of the Companies Act 2013.

  1. The CSR projects or activities that benefit only the employees of the company and their families shall not be considered as CSR activities.

  1. PCCKL shall collaborate with other companies for undertaking projects or programs or CSR activities in such a manner that the CSR Committee is in a position to report separately on such projects or programs.

  1. The PCCKL shall build CSR capacities of their own personnel as well as those of their implementing agencies through Institutions with established track record of at least three financial years but such expenditure, including expenditure on administrative overheads, shall not exceed 5% of total CSR expenditure of the company in one financial year.

  1. Contribution of any amount directly or indirectly to any political party shall not be considered as CSR activity.

  1. The CSR activities shall not include the activities undertaken in pursuance of normal course of business of the company, i.e. it has to be ensured that the activities included in the CSR Policy of the Company are related to the activities included in Schedule VII of the Companies Act, 2013.

  1. The surplus arising out of the CSR Projects or programs or activities shall not form part of the business profit of the Company.

  1. The CSR expenditure shall include all expenditure including contribution to corpus, for projects or programs relating to the CSR activities.

  1. Expenditure incurred for the fulfillment of any Act/Statute or regulations (such as Labour Laws, Land Acquisition Act etc.) would not be considered as CSR activity.

FOCUSSED AREA

PCCKL shall identify, encourage and support projects which are focused on development of people, neighborhood community and environment on following areas:

  1. Provision of access to basic necessities like drinking water, sanitation and healthcare for the underprivileged.

  1. Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly and differently abled and livelihood enhancement projects.

  1. Supporting environmental and ecological balance through afforestation, soil conservation, rain water harvesting and similar programmes.

  1. Undertake rural development projects, women empowerment programmes, initiatives for youth development and promotion of sports & games.

  1. Contribution to the Prime Minister’s National Relief Fund.

  1. Any other programme that is listed in Schedule VII of the Companies Act 2013.

IDENTIFICATION OF PROJECTS

PCCKL shall identify suitable projects in co-ordination with Local Self Governments (LSG) such as Panchayath, Municipality, Corporation and the District Administration.

Suitable projects beneficial to public or community proposed by Non-Governmental Organization (NGO), National Bodies, Hospitals and Educational Institutions also shall be considered.

EVALUATION/ APPROVAL PROCEDURE OF PROJECTS

The projects proposed by the agencies shall be evaluated jointly by the Senior Terminal Manager of the respective location and Senior Manager (HR). Then the project would be reviewed by Vice President (Technical) and Vice President (Finance). After detailed evaluation, the project shall be forwarded to CSR Committee for approval.

Upon obtaining approval, Local Self Governments, District Administration and other Agencies shall be intimated to commence the implementation of the project.

IMPLEMENTATION OF PROJECT

The project shall be implemented by the respective Local Self Governments and PCCKL shall interact with the Local Self Government regularly till the full implementation of the project.

Whenever a proposal from an Agency other than Local Self Governments is accepted, PCCKL shall request the Agency to nominate a Competent Person/ Team to interact with PCCKL for effective co-ordination.  PCCKL shall interact with the Competent Person/ Team nominated by Agency regularly till the full implementation of the project.

PAYMENT

The release of payment by PCCKL for projects shall be done either in lumpsum or stage-wise depending upon the nature of the project. PCCKL shall release payment after physical verification, if necessary and ensuring progress of implementation of the project.

CSR EXPENDITURE

PCCKL shall spend, in every financial year, 2% of the average net profit of the Company made during the three immediately preceding financial years.

REPORTING

Status Report of all CSR projects shall be submitted to the Board quarterly.