Lok Sabha Question No. 149 (STARRED), answered on 2017-03-10
Subject: Spending under CSR
Ministry: CORPORATE AFFAIRS
Asked by: HARI BABU KAMBHAMPATI

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

LOK SABHA STARRED QUESTION NO. 149 ANSWERED ON FRIDAY THE 10th MARCH, 2017/ PHALGUNA 19, 1938 (SAKA)

## SPENDING UNDER CSR

## QUESTION

*149. DR. KAMBHAMPATI HARIBABU:

Will the Minister of CORPORATE AFFAIRS कारपोरेट कार्य मंत्री be pleased to state:

- (a) whether his Ministry has compiled any report on the total spending by companies under Corporate Social Responsibility (CSR) as mandated under Section 135 of the Companies Act, 2013;
- (b) if so, the details thereof along with funds spent since inception, sector, year and State/UT-wise;
- (c) whether his Ministry has received any proposal from various quarters to amend the above Act; and
- (d) if so, the details thereof?

## ANSWER

THE MINISTER OF CORPORATE AFFAIRS  (SHRI ARUN JAITLEY) कारपोरेट कार्य मंत्री ( श्री अरुण जेटली (

(a) to (d):  A Statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN ANSWER TO PART (a) TO (d) OF LOK SABHA STARRED  QUESTION  NO.  149    FOR  10th  MARCH,  2017  REGARDING SPENDING UNDER CSR

(a): & (b): 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 2015-16.  These reports are filed electronically with the Ministry.  CSR expenditure by companies for the years 2014-15 and 2015-16 have been compiled for 7334 companies and 5097 companies respectively.  The summary findings 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. .

(c):  &  (d):    The  Ministry had  received recommendations from Parliamentary Standing Committee on Public Undertakings; Department-Related Parliamentary Standing Committee on Industry; and High Level Committee on CSR, among others,  for amending certain  provisions of CSR under Section

135 of the Companies Act, 2013. These recommendations were examined by the Companies

Law Committee (CLC) of this Ministry, who further sought suggestions from the

Contd…..2/- public before proposing amendments to the provisions of CSR under the Act. The  Companies  Amendment  Bill,  2016  proposing  amendments  to  various provisions under the Companies Act, 2013 including those under Section 135 was introduced in Lok Sabha on 16.03.2016.  The following amendments have been proposed in Section 135 of the Companies Act, 2013:

## In Section 135 of the principal Act, :

- (i) in sub-section (1),-
- (a) for  the  words  'any  financial  year',  the  words  'the  immediately preceding financial year' shall be substituted;
- (b) the following proviso shall be inserted, namely :'Provided  that  where  a  company  is  not  required  to  appoint  an independent director under sub-section (4) of section 149, it shall have in its Corporate Social Responsibility Committee two or more directors.';
- (ii) in sub-section (3), in clause (a), for the words and figures 'as specified in Schedule VII', the words and figures 'in areas or subject, specified in Schedule VII' shall be substituted
- (iii) be substituted, namely :-
- in sub-section (5), for the Explanation, the following Explanation shall 'Explanation - For the purposes of this section 'net profit' shall not include such sums as may be prescribed, and shall be calculated in accordance with the provisions of section 198'.

The proposed amendments were referred to the Hon'ble Parliamentary Standing Committee on Finance. No further changes have been suggested by the Parliamentary Standing Committee regarding Section 135 of the Act.

*****

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO.

## 149

## STATE/UT-WISE CSR EXPENDITUR 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 )   |
|-------------------------------------|---------------------------------------------|-------------------------------------|-------------------------------------|
| Sl .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 Amount                                | 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 REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO.149

## 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 Amount                                                                                     | 8803                                | 9822                                |
| Number of Companies for which data compiled                                                      | 7334                                | 5097                                |

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