शांति का आधार अस्त्र-बल
     The Force Behind Peace

Bharat Dynamics Limited

         A Govt of India Enterprise, Ministry of Defence,
         A Miniratna Category-1 Company


1.1 Introduction:

 “Corporate Social Responsibility & Sustainable Development” is a Company's commitment to operate in an economically, socially and environmentally sustainable manner, while recognizing the interests of its stakeholders. This Commitment is beyond statutory requirements. Corporate Social Responsibility is, therefore, closely linked with the practice of Sustainable Development. Corporate Social Responsibility extends beyond philanthropic activities and reaches out to the integration of social and business goals.

Corporate Social Responsibility leads to triple bottom line “profits protection of environment and fight for social justice”. The success of CSR and SD lies in processing it as a core part of company’s development strategy.

Sustainable development refers to triple P, “People, Planet and Profit”. Sustainable development implies optimizing financial position while not depleting social and environmental aspects and Corporate Social Responsibility implies supporting issues relating to children, women and environment.

With the rapidly changing corporate environment, CPSEs today are required to adopt CSR as a strategic tool for sustainable growth. Corporate Social Responsibility (CSR AND SD) is a concept whereby organizations serve the interests of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of their operations.


1.2 CSR and SD Mission, Objectives and Guiding Principles

1.2.1. CSR and SD Mission Statement:

In alignment with Mission of the company, BDL, through its CSR & SD initiatives, will continue to enhance the quality of life of the less privileged in our society by providing necessary infrastructure and to be a credible and transparent organization striving for the eradication of poverty and maintain ecological balance.

BDL has embarked on adoption of new technological process to conserve energy, thus contributing for the reduction  in the carbon emissions.

1.2.2     The objectives of the BDL CSR & SD Policy:

·     Identify & focus education as a priority and take up suitable interventions for betterment of educational facilities at village level.

·     Concentrate on health, hygiene and environmental up-gradation to make village life clean and hygienic.

·     Educate and encourage village youth to take up self employment and livelihood.

·     To provide support and participate in Government efforts in social, economic and environmental development of the less privileged.

·     Adopting eco-friendly technology in conversing energy

·     Recycling of waste water by using state of art technology and using treated water for Non potable uses.

·     Construction of rain water harvesting pits for improving the water table.

·     Adopting innovative methods in utilizing renewable energy sources.

·     Increasing green cover in and around BDL Campus to reduce the ambient temperature and improving the soil quality.

1.2.3 CSR & SD Principle:

The principle recognizes the challenges of social and economic development faced by India and builds upon the development agenda that has been articulated in the government polices and priorities.

The principle recognizes the value of energy and enterprise of businesses and encourages them to innovate and contribute to the overall development of the country, especially to that of the disadvantaged. Vulnerable and marginalized sections of society.

The principle also emphasizes the need for collaboration amongst businesses, government agencies and civil society in furthering this development agenda.

The principle reiterates that business prosperity and inclusive growth and equitable development are interdependent.


BDL with the approval of its Board of Directors make a budgetary allocation for CSR and Sustainability activities / projects for the year. The budgetary allocation will be based on the profitability of the company. More specifically, it will be determined by the Profit After Tax (PAT) of the company in the previous year as shown here under:

PAT of CPSE in the previous year

Range of Budgetary allocation for CSR and Sustainability activities 

(as % of PAT in previous year)

 (i) Less than Rs. 100 Crore  3% - 5%
 (ii) Rs. 100 Crore to Rs. 500 Crore  2% - 3%
 (iii) Rs. 500 Crore and above  1% - 2%

BDL strive to maximize their spending on CSR and Sustainability activities and move towards the higher end of their slabs of budgetary allocation.

The budget allocated for CSR and Sustainability activities / projects planned for each financial year will be spent within that year. If due to some reason, the budget of a year remains unutilized BDL will disclose reasons for not being able to spend the entire budget on CSR and Sustainability activities as planned for that year, and shall make every endeavour to spend the unutilized budget of any year within the next two financial years.

At least 80% of the annual budget earmarked for CSR and Sustainability activities will be spent on implementation of activities in the project mode

Up to 5% of the annual budget for CSR and Sustainability activities will be earmarked for Emergency needs, which would include relief work undertaken during natural calamities / disasters, and contributions towards Prime Minister’s / Chief Minister’s Relief Funds and/or to the National Disaster Management Authority.

A breakup of the CSR & SD fund:


Baseline 10%
Trainings 5%
Impact 10%
Projects 75% min


3.1 “Identification of Thrust Areas and Strategic Initiatives”:

For purposes of focusing its CSR & SD efforts in a continued and effective manner, the following. Thrust Areas have been identified:

·     Environment Protection 

·     Infrastructure Development

·     Drinking water/ Sanitation

·     Healthcare/ Medical facility

·     Community Development

·     Education

·     Skill Development / Empowerment

·     Disaster Management

·     Arts, culture and sport

·     Waste  energy management

·     Promotion of renewable sources of energy

·     Project for re-use and recycle of waste materials

·     Rain water harvesting

·     Replenishing  the ground water supply

·     Protection conservation and restoration of eco-system

·     Reduction of carbon emission through energy efficient and renewable energy technologies. 

             For contributing towards the cause of Environment Protection, BDL will support the 3 UN Global Compact Principles pertaining to the Environment as below:

 ·     Support a precautionary approach to environmental challenges;

·     Undertake initiatives to promote greater environmental responsibility;

·     Encourage the development and diffusion of environmentally friendly technologies.

BDL will dovetail its CSR and SD activities in a manner that it facilitates the fulfillment of the National Plan Goals and objectives, as well as the Millennium Development Goals so as to ensure gender sensitivity, skill enhancement, entrepreneurship development and employment generation by co‐creating value with local institutions/people. Activities related to Sustainable Development will form a significant element of the total initiatives of CSR & SD.

4.0 Implementation:

4.1 General Guidelines on implementation:

CSR and SD programmes will be undertaken by various work centers of BDL to the best possible extent within the defined ambit of the identified ’Thrust Areas’

The time period/duration over which a particular programme will be spread, will depend on its nature, extent of coverage and the intended impact of the programme.

Initiatives of State Governments, District Administration, Local Administration as well as Central Government Departments Agencies, Self‐Help Groups, etc., would be dovetailed and synergized with the initiatives taken by BDL.

Project activities identified under CSR and SD are to be implemented by specialized agencies, which could include ‐Voluntary Organizations (VOs) formal or informal Elected local bodies such as Panchayats, Institutes/Academic Institutions, Trusts, Self Help Groups, Govt/Semi Govt./Autonomous organizations, Mahila Mandals, Professional Consultancy organization etc.

CSR and SD Projects implementation can also involve PPP model of work: Public – Private, Public – Public partnership as and when needed for best suitability.

4.2 Identification of programmes at Corporate and work centre level will be done by means of the following:

a)      Need identification Studies by professional institutions/agencies

b)      Internal need assessment by cross‐functional team at the local level

c)       Receipt of proposals/requests from District Administration/local Govt. etc.

d)      Discussions and request with local representatives/Civic bodies/Citizen’s forums/VOs

4.3 Area of CSR and SD activities:

The current CSR & SD activities of BDL are focused at 16 locations in Narayanpur and Choutuppal Mandal in the Nalgonda district of Andhra Pradesh. SD activities are focused in conserving the energy, tree plantation,  and Rain water harvesting in the premises of BDL.

4.4 Project based approach:

BDL will follow a project based accountability approach to stress on the long term sustainability, where its action plan will be distinguished as short-term, middle term and long term qualified as:

Short Term – Less than one year

Medium Term – 1 year to 3years

Long Term‐ more than 3 years

While identifying long term programmes, all efforts must be made to the extent possible to define the following:

Programme objectives

Baseline survey – It would give the basis on which the outcome would be measured.

Implementation schedules‐ Timelines Precribed

Responsibilities and authorities

Major results expected and measureable outcome

4.5 Powers for approval

CSR and SD programmes as may be identified by each work centre/corporate office will be required to be put up to the CSR and SD Sub Committee of the Board at the beginning of each financial year with due recommendations of the CSR and SD Committees constituted at the local & corporate level.

For meeting the requirements arising out of immediate & urgent situations, CMD is authorized to approve proposals in terms of the empowerment accorded to him by the CSR and SD Sub Committee.

CSR and SD Committee: (Constitution and Functions)

·         For monitoring of CSR and SD activities, A Board level committee headed by independent director and below board level committee headed by General Manager is constituted.

·         The CSR and SD committee members may constitute the cross functional representation.

·         The Committee shall identify possible NGOs and other agencies for taking up CSR and SD activities on behalf of the Company.

·         The Committee, after conducting base line survey, may prepare service activities based on the information gathered.

·         The Committee may also take the help of professional bodies in the field (NGOs) or other agencies and prepare the plan for CSR and SD activities for the year.

·         The Committee will prepare the budget required for the activity/project and obtain approval from the Management.

·         The Committee shall liaise with Governmental and other agencies and associate with the NGOs concerned for implementation of proposed activities.

·         The Committee shall meticulously document the CSR and SD programmes, expenditure, procurement etc., and put the information in the public domain and make the information available to the National CSR & SD Hub.

·         The Committee shall monitor and oversee the implementation of the CSR and SD activities/ programmes approved by the Company.

 4.6 Executing agency/Partners:

BDL will seek to identify suitable programmes for implementation in line with the CSR  and SD objectives of the Company and also benefit the stakeholders and the community for which those programmes are intended. These works would be done through:

Community based organizations whether formal or informal

Elected local bodies such as Panchayats

Voluntary Agencies (NGOs)

Institutes/ Academic Organizations

Trusts, Missions

Self‐help Groups

Government, Semi‐Government and autonomous Organizations

Standing Conference of Public Enterprises (SCOPE)

Mahila Mandals/ Samitis

Contracted agencies for civil works

Professional Consultancy Organizations


To ensure effective implementation of the CSR and SD programmes undertaken, a monitoring mechanism will be put in place.

The CSR and SD department at the corporate office will conduct impact studies on a periodic basis, through independent professional third parties/professional institutions, especially on the strategic and high value programmes.

Appropriate documentation of the CSR and SD Policy, annual CSR and SD activities, executing partners, and expenditure entailed will be undertaken on a regular basis and the same will be available in the public domain.

CSR and SD initiatives of the Company will also be reported in the Annual Report of the Company and company website.

5.0 CSR and Sustainable Development Plan:


           I.   BDL is committed to CSR and S. D. activities and planning shall be made every year at the beginning of the year both in financial and physical terms. Planning shall be recommended by Board level                CSR & SD committee and shall be incorporated in MoU with the approval of the Board. 

          II. Long term shall be broken down into medium and short term plan and annual target shall be fixed. 

         III. Long term projects whose implementation would be several years may also be broken with annual target. 

         IV. BDL is a Missile manufacturing company, located in Hyderabad, Andhra Pradesh. Priority will be accorded to activity pertaining to

        a) Inclusive growth of society, with special attention to the development of weaker section of society and backward districts of the country.

        b) Environment sustainability.

        In the first category: The projects would be for focus on capacity building, skill development and infrastructural development for the benefit of the marginalized and under privileged section the local communities and also in the backward regions so that avenues are created for their employment and income generation and they also experience empowerment and inclusion in the economic main stream.

        BDL will select one such backward district identified by the planning commission for initiating CSR and SD projects with a prior assessment of the expected level of beneficial are impact on the largest no.of stake holders.

        In the second Category: BDL will plan for environmental sustainability and take up projects for water waste or energy Management, Promotion of renewable sources of water, Bio-diversity conversation, projects for reduction, reuse of waste materials, rain water harvesting and replenishing ground water supply, protection conversation, and restoration of eco-system, reduction of carbon emissions through energy efficient and renewable energy technologies, greening the supply chain and innovation in production and services which have a clear and tangible impact on environmental sustainability.

         Besides specified projects BDL will also take up activities to fully utilize its annual budget for CSR and Sustainability.

 Implementation and Monitoring

   i.    BDL shall devise internal mechanism to spread CSR and SD awareness amongst the employees. The initiatives shall  

       be explained in management meetings, CEO’s communication to employees and other forum where a group of 

      employees are present.

    ii.    Training programmes on CSR and SD shall be organized for the employees. The dealing officers may be nominated for external/CSR & SD training and/or interaction with other PSUs.

   iii.     In case of new incumbents one session on CSR & SD  shall be included in induction/orientation programme.

   iv.    CSR activity shall be in the project mode with measurable targets.

    v.    BDL shall implement the project with the help of external specialized agencies. Internal manpower, whenever required may be associated in implementation. These specialized agencies should have enough credibility to be decided by dealing officers.

   vi.    Evaluation of project, while it is ongoing and also when it is complete shall be done by independent experts.

  vii.    Monitoring shall be done with key indicators, timelines budget and corrective action shall be taken. The monitoring may be done by internal officers. Implementing agency should not monitor the same project. The agency engaged for baseline/need assessment study may also be used for monitoring and valuation.

viii.    The implementation and monitoring of CSR activities will be overseen by Below Board level committee, which will appraise the projects progress to Board level committee headed by an Independent Director.

   ix.    An officer, below the Board level shall be the nodal officer for CSR/SD activities, he will be assisted by team of officials. The nodal officer shall submit report to the CSR & SD Board level Committee headed by an independent director. The independent director, in turn, will submit report to Board once in each quarter. This will form two tier organization on CSR and SD.

Reporting and Disclosure.

1.    Reporting shall be done in following mode :

(a)  Internal – (i) Nodal officer CSR & SD to submit monthly report to the independent Director heading the Board-level committee.

                      (ii) Independent director to Board of Directors of the company once in three months.

 (b)  External-(i) One Para in annual report.

                     (ii) In company’s website.