Lok Sabha Question No. 1993 (UNSTARRED), answered on 2023-03-13
Subject: Imbalance in CSR Spending
Ministry: CORPORATE AFFAIRS
Asked by: Gaddam Ranjith Reddy

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS LOK SABHA

ANSWERED ON MONDAY, MARCH 13, 2023/PHALGUNA 22, 1944 (SAKA)

## UNSTARRED QUESTION NO. 1993 IMBALANCE IN CSR SPENDING

## QUESTION

## 1993. DR. G. RANJITH REDDY:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a)  whether  there  is  stark  imbalance  in  Corporate  Social  Responsibility  (CSR) spending in the country between 2014-15 and 2020-21;
- (b)  if  so,  whether  nearly  35%  of  CSR  funds  goes  to  just  five  States  namely Maharashtra, Karnataka, Gujarat, Tamil Nadu and Andhra Pradesh as per data on CSR portal;
- (c)  whether twenty States and UTs share together just four per cent of CSR funds;
- (d)  if so, the reasons behind such imbalanced flow of CSR funds between States; and
- (e)  the  manner  in  which  the  Government  is  planning  to  evenly  distribute  the  CSR spending between all States and UTs?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS

## [RAO INDERJIT SINGH]

(a) to (e): The broad framework for CSR has been provided under Section 135 of the Companies Act, 2013 ('Act'), Schedule VII of the Act and Companies (CSR Policy) Rules, 2014. The CSR framework is disclosure based and CSR mandated companies are required to file details of CSR activities annually in the MCA21 registry. All data related to CSR filed by companies in MCA21 registry is available in public domain and can be accessed at www.csr.gov.in.

An analysis of CSR data during the period Financial Year (FY) 2014-15 to 2020-21 (Data  upto  30.09.2022),  reveals  that  around  33%  of  the  total  CSR  spent  by  the companies  is  in  the  states  of  Maharashtra,  Karnataka,  Gujarat,  Tamil  Nadu  and

Andhra Pradesh. The CSR expenditure data for States/UTs is provided at Annexure.

Further, the first proviso of Section 135 (5) of the Act provides that the company shall give preference to the local area and areas around it where it operates. In order to ensure an all India spread of CSR expenditure, the Ministry vide General Circular no. 14/2021  dated  25.08.2021  had  clarified  that  the  emphasis  on  local  area  is  only directory and not mandatory in nature and companies need to balance local area preference with national priorities. However, under the Act, CSR is a Board driven process and the Board of the company is empowered to plan, decide, execute and monitor CSR activities based on the recommendations of its CSR Committee. The Government does not issue any specific direction to the companies to spend in any particular geographical area or activity.

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Annexure

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UN-STARRED QUESTION NO. 1993 FOR 13.03.2023

| State/UT-wise CSR expenditure (In Rs. Crores)   | State/UT-wise CSR expenditure (In Rs. Crores)   | State/UT-wise CSR expenditure (In Rs. Crores)   | State/UT-wise CSR expenditure (In Rs. Crores)   | State/UT-wise CSR expenditure (In Rs. Crores)   | State/UT-wise CSR expenditure (In Rs. Crores)   | State/UT-wise CSR expenditure (In Rs. Crores)   | State/UT-wise CSR expenditure (In Rs. Crores)   | State/UT-wise CSR expenditure (In Rs. Crores)   | State/UT-wise CSR expenditure (In Rs. Crores)   |
|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|
| S. N.                                           | States/UT                                       | FY 2014-15                                      | FY 2015-16                                      | FY 2016-17                                      | FY 2017-18                                      | FY 2018-19                                      | FY 2019-20                                      | FY 2020-21                                      | Total                                           |
| 1                                               | Andaman And Nicobar                             | 0.29                                            | 0.55                                            | 0.63                                            | 0.73                                            | 0.82                                            | 1.29                                            | 2.86                                            | 7.16                                            |
| 2                                               | Andhra Pradesh                                  | 414.28                                          | 1,276.73                                        | 743.68                                          | 575.07                                          | 665.97                                          | 710.12                                          | 715.81                                          | 5,101.67                                        |
| 3                                               | Arunachal Pradesh                               | 11.05                                           | 1.48                                            | 24.05                                           | 11.91                                           | 24.56                                           | 18.02                                           | 10.58                                           | 101.66                                          |
| 4                                               | Assam                                           | 134.78                                          | 158.97                                          | 256.92                                          | 211.33                                          | 210.00                                          | 285.00                                          | 167.78                                          | 1,424.78                                        |
| 5                                               | Bihar                                           | 36.69                                           | 123.80                                          | 100.62                                          | 106.17                                          | 137.57                                          | 110.48                                          | 79.30                                           | 694.62                                          |
| 6                                               | Chandigarh                                      | 1.77                                            | 5.34                                            | 21.96                                           | 20.51                                           | 11.46                                           | 15.58                                           | 13.19                                           | 89.81                                           |
| 7                                               | Chhattisgarh                                    | 161.30                                          | 239.72                                          | 84.66                                           | 176.70                                          | 149.35                                          | 269.68                                          | 307.83                                          | 1,389.25                                        |
| 8                                               | Dadra And Nagar Haveli                          | 4.41                                            | 12.03                                           | 7.37                                            | 6.98                                            | 13.48                                           | 18.34                                           | 21.98                                           | 84.59                                           |
| 9                                               | Daman And Diu                                   | 20.05                                           | 2.39                                            | 2.63                                            | 20.23                                           | 6.25                                            | 9.53                                            | 5.25                                            | 66.34                                           |
| 10                                              | Delhi                                           | 237.44                                          | 455.17                                          | 460.25                                          | 579.37                                          | 750.76                                          | 829.50                                          | 713.58                                          | 4,026.08                                        |
| 11                                              | Goa                                             | 27.11                                           | 28.15                                           | 36.25                                           | 53.77                                           | 46.77                                           | 43.91                                           | 41.78                                           | 277.75                                          |
| 12                                              | Gujarat                                         | 313.41                                          | 547.94                                          | 865.30                                          | 967.97                                          | 1,082.18                                        | 984.15                                          | 1,443.62                                        | 6,204.57                                        |
| 13                                              | Haryana                                         | 187.41                                          | 373.44                                          | 386.17                                          | 363.43                                          | 378.11                                          | 536.57                                          | 542.45                                          | 2,767.58                                        |
| 14                                              | Himachal Pradesh                                | 10.95                                           | 52.20                                           | 22.83                                           | 69.23                                           | 78.79                                           | 78.61                                           | 105.01                                          | 417.61                                          |
| 15                                              | Jammu And Kashmir                               | 38.48                                           | 107.80                                          | 42.65                                           | 50.77                                           | 36.44                                           | 25.27                                           | 35.47                                           | 336.88                                          |
| 16                                              | Jharkhand                                       | 79.44                                           | 116.93                                          | 95.49                                           | 109.23                                          | 109.80                                          | 155.21                                          | 210.27                                          | 876.38                                          |
| 17                                              | Karnataka                                       | 403.47                                          | 771.59                                          | 875.41                                          | 1,145.42                                        | 1,252.23                                        | 1,448.08                                        | 1,265.05                                        | 7,161.25                                        |
| 18                                              | Kerala                                          | 68.23                                           | 145.03                                          | 133.82                                          | 219.73                                          | 354.78                                          | 298.56                                          | 286.52                                          | 1,506.67                                        |
| 19                                              | Lakshadweep                                     | -                                               | 0.30                                            | -                                               | 2.27                                            | 0.39                                            | -                                               | 0.01                                            | 2.97                                            |
| 20                                              | Madhya Pradesh                                  | 141.85                                          | 171.58                                          | 161.11                                          | 163.92                                          | 243.55                                          | 215.33                                          | 354.50                                          | 1,451.83                                        |
| 21                                              | Maharashtra                                     | 1,445.92                                        | 2,026.91                                        | 2,414.80                                        | 2,797.53                                        | 3,147.66                                        | 3,348.82                                        | 3,426.31                                        | 18,607.95                                       |
| 22                                              | Manipur                                         | 2.44                                            | 6.25                                            | 12.35                                           | 4.81                                            | 7.81                                            | 14.21                                           | 10.30                                           | 58.17                                           |
| 23                                              | Meghalaya                                       | 3.53                                            | 5.59                                            | 9.75                                            | 11.18                                           | 16.54                                           | 17.65                                           | 12.46                                           | 76.70                                           |
| 24                                              | Mizoram                                         | 1.03                                            | 1.07                                            | 0.08                                            | 1.28                                            | 0.11                                            | 0.25                                            | 0.97                                            | 4.79                                            |
| 25                                              | Nagaland                                        | 1.11                                            | 0.96                                            | 0.53                                            | 1.81                                            | 2.12                                            | 5.10                                            | 3.57                                            | 15.20                                           |
| 26                                              | Odisha                                          | 252.18                                          | 618.69                                          | 325.89                                          | 504.22                                          | 697.91                                          | 716.81                                          | 567.63                                          | 3,683.32                                        |
| 27                                              | Puducherry                                      | 2.02                                            | 6.37                                            | 7.43                                            | 6.09                                            | 9.15                                            | 11.32                                           | 11.97                                           | 54.35                                           |
| 28                                              | Punjab                                          | 55.61                                           | 69.14                                           | 75.05                                           | 112.36                                          | 166.85                                          | 188.52                                          | 137.29                                          | 804.82                                          |
| 29                                              | Rajasthan                                       | 299.76                                          | 483.99                                          | 353.22                                          | 443.35                                          | 595.49                                          | 734.12                                          | 657.86                                          | 3,567.79                                        |
| 30                                              | Sikkim                                          | 1.19                                            | 1.45                                            | 6.71                                            | 7.00                                            | 5.87                                            | 10.99                                           | 15.16                                           | 48.37                                           |
| 31                                              | Tamil Nadu                                      | 539.64                                          | 588.22                                          | 547.94                                          | 669.65                                          | 877.08                                          | 1,072.02                                        | 1,145.67                                        | 5,440.22                                        |
| 32                                              | Telangana                                       | 101.96                                          | 263.60                                          | 256.15                                          | 380.57                                          | 428.06                                          | 445.80                                          | 624.22                                          | 2,500.37                                        |
| 33                                              | Tripura                                         | 1.33                                            | 1.39                                            | 1.25                                            | 1.88                                            | 23.06                                           | 9.40                                            | 9.29                                            | 47.60                                           |
| 34                                              | Uttar Pradesh                                   | 148.90                                          | 416.99                                          | 321.23                                          | 435.21                                          | 521.32                                          | 577.91                                          | 870.13                                          | 3,291.69                                        |
| 35                                              | Uttarakhand                                     | 74.79                                           | 73.12                                           | 102.37                                          | 85.79                                           | 172.31                                          | 124.70                                          | 155.43                                          | 788.50                                          |
| 36                                              | West Bengal                                     | 194.86                                          | 412.14                                          | 275.68                                          | 338.32                                          | 382.23                                          | 422.95                                          | 464.65                                          | 2,490.82                                        |
| 37                                              | NEC/ Not mentioned *                            | 26.94                                           | -                                               | 7.63                                            | 137.93                                          | 4.44                                            | 26.41                                           | 176.20                                          | 379.56                                          |
| 38                                              | PAN India **                                    | 3,995.70                                        | 4,039.44                                        | 4,567.46                                        | 5,505.31                                        | 6,429.81                                        | 9,385.41                                        | 7,684.81                                        | 41,607.94                                       |
| 39                                              | Contribution to Funds                           | 624.61                                          | 910.74                                          | 787.22                                          | 799.18                                          | 1,155.86                                        | 1,789.15                                        | 3,417.89                                        | 9,484.66                                        |
|                                                 | of the Act Grand Total (in Cr.)                 | 10,065.93                                       | 14,517.21                                       | 14,394.55                                       | 17,098.20                                       | 20,196.95                                       | 24,954.78                                       | 25,714.65                                       | 1,26,942.27                                     |

(Data up to 30.09.2022)   [Source: National CSR Data Portal] *Companies did not specify the names of States where projects were undertaken ** Companies indicated more than one State where projects were undertaken.

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