Around 60 per cent of the total CSR funds spent by
companies in the last seven financial years were in the areas of education,
healthcare and rural development-related activities, according to the
government. In a written reply to the Lok Sabha, the corporate affairs ministry
also informed that during the given period, around 33 per cent of the total CSR
amount spent by companies were in Maharashtra, Karnataka, Gujarat, Andhra
Pradesh and Tamil Nadu.
Under the Companies Act, 2013, a certain class
of profitable companies are required to shell out at least two per cent of
their three-year annual average net profit towards CSR (Corporate Social
Responsibility) activities in a particular fiscal.
CSR is a board-driven process and the board of a
company is empowered to plan, decide, execute and monitor CSR activities of the
company based on the recommendation of its CSR Committee.
Minister
of State for Corporate Affairs Rao Inderjit Singh said in the written reply
that the government does not issue any specific direction to the companies to
spend in any particular geographical area or activity.
"An analysis of CSR data during the period
2014-15 to 2020-21, reveals that around 33 per cent of the total CSR spent by
the companies is in the states of Maharashtra, Karnataka, Gujarat, Andhra
Pradesh and Tamil Nadu. Similarly, around 60 per cent of the total CSR spent by
the companies is in the areas of education, healthcare and rural development-related
activities," he said.
In a separate written reply, Corporate Affairs
Minister Nirmala Sitharaman said all CSR eligible companies have spent a
cumulative CSR amount of Rs 24,865.46 crore in FY 2020-21. Out of the total
amount, Rs 6,946.75 crore was spent on 'healthcare-related activities',
including activities related to COVID-19.
