Lok Sabha Question No. 2262 (UNSTARRED), answered on 2017-07-28
Subject: Utilisation of Funds under CSR
Ministry: CORPORATE AFFAIRS
Asked by: RITI PATHAK, HARI NARAYAN RAJBHAR

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 2262 ANSWERED ON FRIDAY THE 28 th  JULY, 2017 SHRAVANA 6, 1939 (SAKA)

## UTILISATION OF FUNDS UNDER CSR

## QUESTION

2262. SHRIMATI RITI PATHAK:

SHRI HARINARAYAN RAJBHAR:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a) whether the companies of both public and private sectors have mandatorily spent certain percentage of their profits on welfare development activities as Corporate Social Responsibility (CSR);
- (b)  if  so,  the  details  of  the  amount  utilised and major activities/programmes undertaken by various public sector and private sector companies during the last three years, State/UT-wise including Uttar Pradesh;
- (c) whether any comparative study has been conducted regarding the amount of the fund spent by the private companies and public sector undertakings and if so, the details thereof and if not, the reasons therefor;
- (d) whether the Government has laid emphasis on the effective implementation of CSR and if so, the details thereof; and
- (e) the details of the funds provided for CSR funds Panchayat Saansad Adarsh Gram Yojana as on date, State/UT-wise?

## ANSWER

THE MINISTER OF STATE IN THE

MINISTRY OF CORPORATE AFFAIRS                              (SHRI ARJUN RAM MEGHWAL)

कारपोरेट कार्य मंत्रालर् में राज्र् मंत्री

(

श्री अर्जयन राम मेघवाल )

- (a): Section 135 of the Companies Act 2013, mandates every company above the specified thresholds of turnover, or net worth, or net profit to spend at least two per cent of the average net profits earned during the three immediately preceding financial years on Corporate Social Responsibility (CSR) activities specified in Schedule VII of the Act.

कारपोरेट कार्य मंत्री

(b)&  (c):    The  year  2014-15  was  the  first  year  of  Implementation  of  Corporate  Social Responsibility (CSR) by companies under the companies Act, 2013. CSR eligible companies have made annual disclosure on CSR in their Board's report for the years 2014-15 and 201516.  Expenditure by companies for the years 2014-15 and 2015-16 have been compiled for 7334 companies and 5097 companies respectively.  The details are as under:

CSR Expenditure during 2014-15 and 2015-16

| Sl. No.   | Company Type             | Financial Year 2014-15                            | Financial Year 2014-15                | Financial Year 2015-16                            | Financial Year 2015-16                |
|-----------|--------------------------|---------------------------------------------------|---------------------------------------|---------------------------------------------------|---------------------------------------|
|           |                          | No. of companies for which data has been compiled | Actual CSR expenditure (in Rs. Crore) | No. of companies for which data has been compiled | Actual CSR expenditure (in Rs. Crore) |
| 1.        | PSUs                     | 226                                               | 2497                                  | 172                                               | 3360                                  |
| 2.        | Private Sector Companies | 7108                                              | 6306                                  | 4925                                              | 6462                                  |
|           | Total                    | 7334                                              | 8803                                  | 5097                                              | 9822                                  |

States/UTs-wise  CSR  expenditure  and  development  sector  wise  CSR  spend  are  at Annexure I and Annexure II respectively.

(d):  Ministry has issued clarificatory circular and Frequently Asked Questions (FAQs) dated 18.06.2014 and 12.01.2016 respectively to facilitate the effective implementation of CSR provision by companies and professionals. In addition sensitisation workshops have been organised  by  the  Offices  of  Regional  Directorate  under  Ministry  of  Corporate  Affairs  to ensure effective compliance of CSR provisions by companies.

(e): CSR  funds  are  permitted  to  be  leveraged  under  various  government  programmes including  the  'Saansad  Adarsh  Gram  Panchayats'.    The  CSR  expenditure  of  companies compiled by the Ministry is on major development sector-wise as listed in Schedule VII of the Companies Act, 2013, which includes 'rural development'.

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## Annexure -I

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARED QUESTION NO. 2262

## STATE/UT-WISE CSR EXPENDITURE DURING FY 2014-15 and FY 2015-16

| CSR Expenditure ( In Rs. Crores )   | CSR Expenditure ( In Rs. Crores )    | CSR Expenditure ( In Rs. Crores )   | CSR Expenditure ( In Rs. Crores )   |
|-------------------------------------|--------------------------------------|-------------------------------------|-------------------------------------|
| S. No.                              | State/ UT                            | 2014-15                             | 2015-16                             |
| 1                                   | Maharashtra                          | 1102                                | 1138                                |
| 2                                   | Karnataka                            | 363                                 | 408                                 |
| 3                                   | Andhra Pradesh                       | 168                                 | 379                                 |
| 4                                   | Gujarat                              | 292                                 | 338                                 |
| 5                                   | Uttar Pradesh                        | 123                                 | 322                                 |
| 6                                   | Rajasthan                            | 252                                 | 285                                 |
| 7                                   | Tamil Nadu                           | 447                                 | 261                                 |
| 8                                   | Delhi                                | 140                                 | 237                                 |
| 9                                   | Odisha                               | 214                                 | 231                                 |
| 10                                  | Madhya Pradesh                       | 176                                 | 215                                 |
| 11                                  | West Bengal                          | 243                                 | 170                                 |
| 12                                  | Haryana                              | 108                                 | 169                                 |
| 13                                  | Chhattisgarh                         | 275                                 | 168                                 |
| 14                                  | Jharkhand                            | 87                                  | 128                                 |
| 15                                  | Telangana                            | 89                                  | 105                                 |
| 16                                  | Kerala                               | 57                                  | 84                                  |
| 17                                  | Bihar                                | 15                                  | 78                                  |
| 18                                  | Assam                                | 107                                 | 52                                  |
| 19                                  | Uttarakhand                          | 25                                  | 50                                  |
| 20                                  | Punjab                               | 24                                  | 42                                  |
| 21                                  | Jammu & Kashmir                      | 75                                  | 37                                  |
| 22                                  | Arunachal Pradesh                    | 10                                  | 20                                  |
| 23                                  | Himachal Pradesh                     | 5                                   | 10                                  |
| 24                                  | Dadar & Nagar Haveli                 | 2                                   | 8                                   |
| 25                                  | Goa                                  | 24                                  | 6                                   |
| 26                                  | Meghalaya                            | 2                                   | 3                                   |
| 27                                  | Manipur                              | 1                                   | 2                                   |
| 28                                  | Pondicherry                          | 1                                   | 2                                   |
| 29                                  | Daman & Diu                          | 20                                  | 1                                   |
| 30                                  | Chandigarh                           | 1                                   | 1                                   |
| 31                                  | Tripura                              | 0                                   | 0                                   |
| 32                                  | Lakshadweep                          | 1                                   | 0                                   |
| 33                                  | Sikkim                               | 0                                   | 0                                   |
| 34                                  | Nagaland                             | 0                                   | 0                                   |
| 35                                  | Andaman & Nicobar Islands            | 1                                   | 0                                   |
| 36                                  | All India*                           | 4353                                | 4871                                |
|                                     | Total (in Rs. Crore)                 | 8803                                | 9822                                |
| Number                              | of Companies for which data compiled | 7334                                | 5097                                |

* Companies either did not specify the names of States or indicated more than one State where projects were undertaken.

*********

********

Annexure -II

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARED QUESTION NO. 2262

## DEVELOPMENT SECTOR WISE CSR EXPENDITURE FOR FY 2014-15 AND FY 2015-16

| CSR Expenditure ( In Rs. Crores )                                                                | CSR Expenditure ( In Rs. Crores )   | CSR Expenditure ( In Rs. Crores )   |
|--------------------------------------------------------------------------------------------------|-------------------------------------|-------------------------------------|
| Sectors                                                                                          | 2014-15                             | 2015-16                             |
| Health/ Eradicating Hunger/ Poverty and malnutrition/ Safe drinking water / Sanitation           | 2246                                | 3117                                |
| Education/ Differently Abled/ Livelihood                                                         | 2728                                | 3073                                |
| Rural development                                                                                | 1017                                | 1051                                |
| Environment/ Animal Welfare/ Conservation of resources                                           | 1213                                | 923                                 |
| Swachh Bharat Kosh                                                                               | 121                                 | 355                                 |
| Any other Fund                                                                                   | 36                                  | 262                                 |
| Gender equality / Women empowerment / Old age homes / Reducing inequalities                      | 326                                 | 213                                 |
| Prime Minister's National Relief Fund                                                            | 192                                 | 136                                 |
| Encouraging Sports                                                                               | 160                                 | 95                                  |
| Heritage Art and Culture                                                                         | 157                                 | 90                                  |
| Slum area development                                                                            | 123                                 | 9                                   |
| Clean Ganga Fund                                                                                 | 19                                  | 3                                   |
| Other Sectors ( Technology Incubator and benefits to armed forces, admin overheads and others* ) | 465                                 | 497                                 |
| Total (In Rs. Crore)                                                                             | 8803                                | 9822                                |
| Number of Companies for which data compiled                                                      | 7334                                | 5097                                |