Total CSR spend may cross Rs 50,000 crore by March 2019
According to a research done by development sector platforms
CSRBOX and NGOBOX ,the total corporate social responsibility (CSR) spending by
the top 500 companies in the country since the applicability of mandatory CSR
in 2014 is likely to cross Rs 50,000 crore by March 2019.
The CSR compliance is also likely to improve and fall in the
range of 97 to 98 % by financial year 2019-20.
Mandatory CSR has gradually formalised the corporate
philanthropy with emphasis on impacts on the ground.
With on an average Rs 12,000 crore funding annually, there
is a lot that can be done in education, healthcare and rural development areas.
The government in 2014 made mandatory for companies to spend
2 % of their three-year average annual net profit on CSR activities in each
financial year, starting from F.Y-2015.
The norms are applicable to firms with at least Rs 5 crore
net profit or Rs 1,000 crore turnover or Rs 500 crore net worth.
The report also revealed that the top 20 corporations
command over 45 % of the prescribed CSR in the country.
In addition, the top 500 companies, which contribute to over
90 % of the total CSR spend, are estimated to spend over Rs 11,000 crore on
social initiatives in F.Y-2019.
In terms of sectors, education is expected to be the most
favoured area of CSR investment in the coming years.
In terms of states, Maharashtra receives the biggest chunk
of the total CSR fund spent in the country, followed by Rajasthan, Karnataka
and Gujarat, together accounting for one third of the country’s total CSR
The north-eastern states of Nagaland, Meghalaya, Mizoram and
Tripura have received lowest CSR funding so far.