Maharashtra received the highest CSR funds to the tune of Rs 8,468 crore out of a total of Rs 52,208 crore
Maharashtra received the largest pie of the Corporate Social Responsibility (CSR) funds by India Inc during the financial years 2014-15 to 2017-18. The state along with Gujarat, Karnataka, Andhra Pradesh, Tamil Nadu and Delhi saw around 40% of the total expenditure incurred by the companies on CSR projects during the same period, according to the report of the high-level Committee headed by Ministry of Corporate Affairs (MCA) secretary Injeti Srinivas. The report on CSR was submitted to finance and corporate affairs minister Nirmala Sitharaman last week.
As per section 135 of the Companies Act, 2013, the companies with a net worth of Rs 500 crore or more or turnover of Rs 1,000 crore or more or a net profit of Rs 5 crore or more have to spend on CSR at least 2% of their average net profits earned during the three immediate preceding years. The CSR provision was implemented in April 2014.
The analysis of the CSR expenditure between April 1, 2014 and March 31, 2018 (latest filings available with MCA as on March 31, 2019) reveals that Maharashtra received the highest CSR funds to the tune of Rs 8,468 crore out of a total of Rs 52,208 crore spent by the companies on CSR activities. The second highest CSR expenditure of Rs 3,014 crore was incurred by the companies in Karnataka, followed by Rs 2,727 crore in Andhra Pradesh, Rs 2,500 crore in Gujarat and Rs 2,330 crore in Tamil Nadu during four years from 2014-2018. Delhi received CSR funds to the tune of Rs 1,773 crore during the four financial years.
The education sector received a maximum of 37% CSR funds (Rs 15,612 crore), followed by healthcare at 29% (Rs 9,020 crore), rural development at 10% (Rs 5,442 crore) and environmental sustainability at 9% (Rs 3,709 crore) over the four years up to 2018. Four percent of the total CSR funds (Rs 2,939 crore) was contributed by the companies towards the government funds such as Prime Minister Relief Fund, Clean Ganga and Swachch Bharat Kosh. Heritage, art and culture received just 2% (Rs 824 crore), while sports received only 1% (Rs 600 crore) of the total CSR money spent by the companies.
Odisha received Rs 1,660 crore of CSR money, while Rajasthan got Rs 1,385 crore, Haryana Rs 1,196 crore, Uttar Pradesh Rs 1,184 crore and West Bengal Rs 1,177 crore during the four years.
The states which spent between Rs 500 crore and Rs 1,000 crore on CSR work are Telangana (Rs 913 crore), Madhya Pradesh (Rs 758 crore), Assam (Rs 653 crore) and Chattisgarh (Rs 552 crore).
The North East Region comprising eight states received a minuscule proportion of the total CSR funds at Rs 779 crore during the four years since the implementation of CSR provisions. Of these eight states, Assam received maximum CSR funds of Rs 653 crore.
Among other states which got less than Rs 500 crore are Kerala (Rs 497 crore), Jharkhand (Rs 338 crore), Uttarakhand (Rs 331 crore), Bihar (Rs 290 crore), Punjab (Rs 287 crore), Jammu & Kashmir (Rs 208 crore), Himachal Pradesh (Rs 147 crore) and Goa (Rs 144 crore).
A large number of companies spent their CSR funds in the states other than those where the companies are registered.
The analysis of the CSR data shows that top net recipient states were Andhra Pradesh, Uttar Pradesh, Rajasthan and Odisha. Similarly, top donor states were Maharashtra, Delhi, Gujarat, Punjab, West Bengal and Karnataka. A state is a net recipient when the outgoing CSR funds is less than the amount received by that state from other states, while state is a net donor when the amount of CSR funds originating from the state but going to other states is greater than the amount received from other states.
LEADING THE PACK
- Maharashtra received the highest CSR funds to the tune of Rs 8,468 crore out of a total of Rs 52,208 crore
- The education sector received a maximum of 37% CSR funds (Rs 15,612 crore), followed by healthcare at 29% (Rs 9,020 crore)
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