No Mandatory CSR Obligation on Khrew Cement Units; Rs 3.78 Cr Spent Voluntarily | Kashmir Life

SRINAGAR: The Jammu and Kashmir government on Thursday informed the Assembly that none of the cement factories operating in the Khrew–Wuyan belt falls within the mandatory Corporate Social Responsibility (CSR) provisions under Section 135 of the Companies Act 2013, though several units have undertaken CSR initiatives on a voluntary basis.

Replying to a Question by MLA Hasnain Masoodi, the Industries and Commerce Department said CSR has been made compulsory under the Companies Act, 1956 as amended in 2013. Under Section 135 of the Companies Act, 2013, which came into force from April 1, 2013, companies meeting specified financial thresholds are required to spend at least 2 per cent of their average net profits of the preceding three financial years on CSR activities.

The department clarified that the Act is administered by the Ministry of Corporate Affairs, Government of India. Companies with a net worth of Rs 500 crore or more, turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more during any financial year fall within the ambit of mandatory CSR compliance.

It further stated that CSR is a Board-driven process and the government does not issue directions to companies to undertake CSR expenditure in any specific area or activity. Compliance and monitoring of CSR disclosures, including filing of Form CSR-2, are handled by the Ministry of Corporate Affairs through its centralized database and National CSR Portal.

The department also referred to a framework for CSR in Jammu and Kashmir notified by the Planning and Development Department in 2016, which provides that no government department, agency, PSU or corporation shall receive any CSR contribution directly unless routed through the designated “CSR Fund” and approved by the governing body headed by the Chief Secretary.

On the specific query regarding annual profits of cement factories in Wuyan–Khrew between 2022 and 2025, the department said it does not maintain data related to annual profits of individual cement units operating in the area.

However, the government informed the House that despite not falling under the mandatory CSR ambit, cement factories in the Khrew–Wuyan area have made voluntary contributions amounting to Rs 378.51 lakh up to December 2025.

Cemtac Cement Factory reported CSR expenditure of Rs 55.63 lakh on activities including skill development and education, social and livelihood support, drinking water and agriculture, health and medical expenditure, road development, housing and sanitation, and plantation drives.

TCI Max Cement Factory reported voluntary CSR spending of Rs 273.06 lakh on hospital accessories, X-ray machines and ambulances.

HK Cement Factory reported CSR expenditure of Rs 22 lakh on hospital accessories, X-ray machines and financial assistance to destitute persons.

Dawar Cement Factory reported Rs 27.82 lakh in CSR spending, including contributions to COVID relief funds, Red Cross societies and sponsorship initiatives.

In response to a query on whether a mechanism has been devised to audit CSR works and ensure compliance and restoration of assets damaged by industrial activity, the department said no such mechanism exists at the level of the Jammu and Kashmir government. It stated that enforcement and compliance under the Companies Act fall within the domain of the Ministry of Corporate Affairs, Government of India.