Ministry Holds Key Consultation on Developing CSR Framework for Coal Sector

The Ministry of Coal convened a high-level stakeholders’ consultation on Corporate Social Responsibility (CSR) in the coal industry on October 7, 2025, at the SCOPE Complex, New Delhi, marking an important step toward formulating a sector-specific CSR framework for Indian coal companies. The meeting brought together senior officials from the Ministry, representatives from Coal India Limited (CIL), NLC India Limited (NLCIL), Singareni Collieries Company Limited (SCCL), and leading private sector coal producers.

The objective of the consultation was to deliberate on a comprehensive and sustainable CSR framework that would guide both public and private coal companies in aligning their community development and environmental initiatives with India’s broader sustainability and social responsibility goals.

Building a Unified CSR Vision for the Coal Industry

In her keynote address, Ms. Rupinder Brar, Additional Secretary, Ministry of Coal, underscored the importance of creating a unified and structured CSR approach tailored to the coal sector. She emphasized that coal companies must converge their CSR, welfare, and sustainability efforts to deliver measurable community benefits, while also contributing to green growth and environmental conservation.

“Coal companies must work together to quantify their CSR and sustainability contributions so that these efforts can be recognized as green credits,” Ms. Brar said, stressing the need to align CSR outcomes with environmental performance indicators.

She also called upon the companies to prioritise local needs while planning CSR initiatives, ensuring that development projects are context-specific, community-led, and outcome-oriented.

Coal PSUs’ Role in Nation-Building Through CSR

Over the years, Coal PSUs such as CIL, NLCIL, and SCCL have been at the forefront of CSR initiatives, taking impactful measures in the fields of healthcare, education, environment protection, sanitation, sports, and livelihood generation. These initiatives, governed by the policy directives under the Companies Act, 2013, the Companies (CSR Policy) Rules, 2014, and the guidelines of the Department of Public Enterprises (DPE), have made significant contributions to community welfare in mining and adjacent regions.

However, with the growing participation of private players in India’s coal sector, the Ministry of Coal recognised the need for a dedicated, sector-specific CSR framework. The new framework aims to ensure uniformity, transparency, and accountability in CSR implementation across both public and private enterprises, while promoting responsible mining and sustainable development.

Stakeholder Inputs and Emerging Priorities

During the consultation, stakeholders from both the public and private sectors provided valuable inputs on the key framework elements. They shared experiences from their flagship CSR projects, particularly those involving community engagement, infrastructure creation, and environmental rehabilitation.

Participants stressed that community benefit should remain the central objective of all CSR activities. Companies were urged to engage directly with local communities and panchayats to understand ground realities and co-create projects that align with their developmental priorities.

The deliberations also underscored several emerging focus areas for the proposed framework:

• Integration of CSR and Sustainability: Ensuring that social responsibility, environmental management, and business sustainability are interlinked.

• Transparency and Accountability: Adoption of standard reporting mechanisms and third-party audits to monitor CSR outcomes.

• Need and Impact Assessments: Engaging credible independent agencies to conduct baseline studies, needs assessments, and impact evaluations to enhance project effectiveness.

• Convergence with Government Schemes: Aligning CSR efforts with national and state-level programs to avoid duplication and maximize impact.

• Collaboration and Knowledge Sharing: Encouraging partnerships between PSUs, private companies, NGOs, and academic institutions.

Toward a Standardised CSR Framework

The consultation highlighted the need to develop Standard Operating Procedures (SOPs) for key CSR functions, including:

• Budget formulation and transparent allocation mechanisms.

• Sustainability of created assets, ensuring long-term utility and maintenance.

• Institutional capacity building for implementing agencies and CSR partners.

• Monitoring and evaluation systems to assess project performance in real time.

• Effective communication strategies to strengthen community outreach and awareness of CSR activities.

Stakeholders also proposed the adoption of internationally recognised reporting standards, such as the Business Responsibility and Sustainability Report (BRSR), the Global Reporting Initiative (GRI) framework, and the UN Sustainable Development Goals (SDGs), to facilitate comprehensive sustainability reporting for coal sector companies.

Promoting Collaborative and Responsible Coal Development

Ms. Brar encouraged coal companies to pool resources and expertise to address common challenges, particularly in areas such as air quality improvement, land reclamation, renewable energy adoption, and livelihood diversification for communities dependent on coal mining.

“Meaningful CSR can be achieved when companies work together to deliver tangible change on the ground. Collaboration between PSUs and private coal companies is key to a just and sustainable transition,” she noted.

She further emphasised the need for impact communication to showcase the good work being undertaken in mining areas, suggesting that companies document and share success stories of community transformation driven by CSR interventions.

A Step Toward Responsible Growth and Social Equity

The Ministry of Coal’s initiative to develop a dedicated CSR framework marks a significant step toward institutionalising social and environmental responsibility in India’s coal sector. The framework will serve as a strategic guide for all coal companies to align their operations with principles of sustainability, inclusivity, and ethical business conduct.

The proposed framework will also complement India’s energy transition goals, ensuring that the coal industry continues to support local development, environmental stewardship, and climate resilience as the nation diversifies its energy portfolio.

The consultation concluded with a shared consensus among participants that community benefit, transparency, and sustainability must remain the three pillars of the coal sector’s CSR framework. The Ministry will incorporate the feedback and insights from the consultation into a draft policy, which will undergo further review before finalisation.

“This consultation is a significant milestone in creating a unified, future-ready CSR strategy for the coal industry,” said Ms. Brar. “Our vision is to ensure that every rupee spent on CSR translates into measurable social and environmental value.”