Lok Sabha Question No. 72 (STARRED), answered on 2022-12-12
Subject: CSR Spending by Top Companies
Ministry: CORPORATE AFFAIRS
Asked by: Upendra Singh Rawat

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## STARRED QUESTION NO. 72

ANSWERED ON MONDAY, DECEMBER 12, 2022/AGRAHAYANA 21, 1944 (SAKA)

## CSR SPENDING BY TOP COMPANIES QUESTION

*72.  SHRI UPENDRA SINGH RAWAT:

Will the Minister of CORPORATE AFFAIRS कारपोरेट कार्य

मंत्री be pleased to state:

- (a)  the  total  Corporate  Social  Responsibility  (CSR)  spending  by  the  top  500 companies  in  the  country  in  tourism,  education,  healthcare,  rural  development areas, etc., during the last two years and the current year, State/UT-wise including Uttar Pradesh;
- (b)  whether  the  Government  has  advised  the  companies  to  make  ground  water development,  solar  panel  and  pollution  free  water  bodies  as  core  areas  of  CSR investment in the coming year 2023 and if so, the details thereof, constituency-wise in Uttar Pradesh;
- (c) whether the companies are allowed/proposed to be allowed to carry forward the unspent CSR fund to next year; and
- (d) if so, the details thereof and the corrective measures taken by the Government in this regard?

## ANSWER

| THE MINISTER OF FINANCE AND CORPORATE AFFAIRS वित्त एिं कारपोरेट कार्य मंत्री सीतारामि )   | (SHRIMATI NIRMALA SITHARAMAN) ( श्रीमती विमयला   |
|--------------------------------------------------------------------------------------------|--------------------------------------------------|

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

*****

STATEMENT  REFERRED  TO  IN  ANSWER  TO  PART  (a)  TO  (d)  OF  LOK  SABHA  STARRED QUESTION NO. *72 (12 TH  POSITION) FOR 12 th  DECEMBER, 2022 REGARDING CSR SPENDING BY TOP COMPANIES. (a): The broad framework for Corporate Social Responsibility (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 expenditure filed by companies in MCA21 registry is available in public domain at www.csr.gov.in. On the basis of annual filings made by companies in the MCA 21 registry, development Sector-wise CSR spent by top 500 companies during last two Financial Years (FY)  i.e.  2019-20  and  2020-21  in  different  activities  including  tourism  (Art  &  culture), education, healthcare, rural development areas etc. is at Annexure-I. The State-wise (including Uttar Pradesh) CSR spent by top 500 companies during the same period is at Annexure-II. Further,  the  companies  are  required  to  file  CSR  details  for  FY  2021-22  on  or  before 31.03.2023. Moreover, filings for FY 2022-23 are required to be made only after the end of current financial year. (b): Schedule VII of the Act indicates the eligible list of activities that can be undertaken by the companies as CSR. The Ministry vide General Circular no. 21/2014 dated 18th June, 2014 and 14/2021 dated 25 th  August, 2021 had clarified that items mentioned in Schedule VII are broad based and can be interpreted liberally. Item no. (i) of Schedule VII inter alia covers 'sanitation and safe drinking water ' as eligible CSR activities. Similarly, item no. (iv) covers ' ensuring environmental sustainability, conservation of natural resources and maintaining quality  of  soil,  air  and  water'  as  elig ible  CSR  activities.  Accordingly,  ground  water development, solar panel and pollution free water bodies are eligible CSR activities under item no. (i) & (iv) of Schedule VII. However, under the Act, CSR is a Board driven process and the  Board  of  the  company  is  empowered  to  plan,  decide,  execute  and  monitor  the  CSR activities  based  on  the  recommendations  of  its  CSR  Committee.  The  CSR  mandated companies  can  undertake  any  of  the  activities  mentioned  in  Schedule  VII  subject  to fulfillment of provisions as contained in the Act and Companies (CSR Policy) Rules, 2014. The Government does not issue any direction to the companies to spend in any particular geographical area or activity. (c) & (d): Through the Companies (Amendment) Acts, 2019 and 2020, certain amendments to Section 135 of the Act have been made to provide for treatment of unspent CSR amount on the basis of nature of the project. In case of an ongoing project, the company is required to transfer the unspent amount to a special account of the company i.e 'Unspent CSR Account' , within 30 days from the end of financial year and spend the same in pursuance of its CSR policy within the next three financial years from the date of such transfer. After lapse of three financial years, the amount remaining unspent, if any, is required to be transferred to any Fund mentioned in Schedule VII of the Act. In case of other than an ongoing project, the company is required to transfer the unspent CSR amount to any Fund mentioned in Schedule VII of the Act within a period of six months from the end of the financial year.

The Government monitors the compliance of CSR provisions through the disclosures made by the companies in MCA21 registry. Whenever any violation of CSR provisions is reported, action against such non-compliant Companies is initiated as per provisions of the Act after due examination of records and following due process of law.

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## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF LOK SABHA STARRED QUESTION NO. 72 FOR 12.12.2022

| Development Sector Wise CSR Expenditure by Top 500 Companies (Amount in Crore)   | Development Sector Wise CSR Expenditure by Top 500 Companies (Amount in Crore)   | Development Sector Wise CSR Expenditure by Top 500 Companies (Amount in Crore)   | Development Sector Wise CSR Expenditure by Top 500 Companies (Amount in Crore)   |
|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|
| S. No                                                                            | Development Sector                                                               | FY 2019-20                                                                       | FY 2020-21                                                                       |
| 1                                                                                | Agro forestry                                                                    | 60.53                                                                            | 11.58                                                                            |
| 2                                                                                | Animal welfare                                                                   | 33.93                                                                            | 91.03                                                                            |
| 3                                                                                | Armed Forces, Veterans, War Widows/                                              | 41.67                                                                            | 67.38                                                                            |
| 4                                                                                | Dependants Art and culture                                                       | 854.19                                                                           | 392.45                                                                           |
| 5                                                                                | Clean Ganga Fund                                                                 | 1.00                                                                             | 5.77                                                                             |
| 6                                                                                | Conservation of natural resources                                                | 131.88                                                                           | 66.49                                                                            |
| 7                                                                                | Education                                                                        | 4,777.41                                                                         | 4,004.20                                                                         |
| 8                                                                                | Environmental sustainability                                                     | 1,178.95                                                                         | 736.26                                                                           |
| 9                                                                                | Gender equality                                                                  | 55.72                                                                            | 14.81                                                                            |
| 10                                                                               | Health care                                                                      | 3,523.04                                                                         | 5,028.10                                                                         |
| 11                                                                               | Livelihood Enhancement Projects                                                  | 857.11                                                                           | 576.76                                                                           |
| 12                                                                               | Other Central Government Funds                                                   | 758.45                                                                           | 1,267.92                                                                         |
| 13                                                                               | Poverty, Eradicating Hunger, Malnutrition                                        | 814.17                                                                           | 829.38                                                                           |
| 14                                                                               | Prime Minister's National Relief Fund                                            | 478.34                                                                           | 1,218.79                                                                         |
| 15                                                                               | Rural development projects                                                       | 1,951.75                                                                         | 1,518.08                                                                         |
| 16                                                                               | Safe drinking water                                                              | 182.02                                                                           | 140.74                                                                           |
| 17                                                                               | Sanitation                                                                       | 424.19                                                                           | 250.31                                                                           |
| 18                                                                               | Senior Citizens Welfare                                                          | 25.15                                                                            | 21.69                                                                            |
| 19                                                                               | Setting up homes and hostels for women                                           | 34.70                                                                            | 18.88                                                                            |
| 20                                                                               | Setting up orphanage                                                             | 22.32                                                                            | 8.76                                                                             |
| 21                                                                               | Slum area development                                                            | 35.33                                                                            | 71.30                                                                            |
| 22                                                                               | Socio-economic inequalities                                                      | 139.10                                                                           | 51.44                                                                            |
| 23                                                                               | Special education                                                                | 132.53                                                                           | 131.69                                                                           |
| 24                                                                               | Swachh Bharat Kosh                                                               | 25.10                                                                            | 136.67                                                                           |
| 25                                                                               | Technology incubators                                                            | 33.67                                                                            | 34.56                                                                            |
| 26                                                                               | Training to promote sports                                                       | 231.94                                                                           | 170.58                                                                           |
| 27                                                                               | Vocational skills                                                                | 1,017.11                                                                         | 444.78                                                                           |
| 28                                                                               | Women empowerment                                                                | 156.57                                                                           | 93.17                                                                            |
| 29                                                                               | NEC/ Not mentioned*                                                              | 495.53                                                                           | 268.82                                                                           |
| Grand                                                                            | Total                                                                            | 18,473.41                                                                        | 17,672.40                                                                        |

(Data upto 30.09.2022) [Source: National CSR Data Portal]

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

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## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF LOK SABHA STARRED QUESTION NO. 72 FOR 12.12.2022

| State Wise CSR Expenditure by Top 500 Companies (Amount in Crore)   | State Wise CSR Expenditure by Top 500 Companies (Amount in Crore)   | State Wise CSR Expenditure by Top 500 Companies (Amount in Crore)   | State Wise CSR Expenditure by Top 500 Companies (Amount in Crore)   |
|---------------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------|
| S. No                                                               | State/ UT                                                           | FY 2019-20                                                          | FY 2020-21                                                          |
| 1                                                                   | Andaman And Nicobar                                                 | -                                                                   | 0.09                                                                |
| 2                                                                   | Andhra Pradesh                                                      | 548.52                                                              | 511.04                                                              |
| 3                                                                   | Arunachal Pradesh                                                   | 16.19                                                               | 8.19                                                                |
| 4                                                                   | Assam                                                               | 258.28                                                              | 132.77                                                              |
| 5                                                                   | Bihar                                                               | 81.98                                                               | 43.68                                                               |
| 6                                                                   | Chandigarh                                                          | 8.60                                                                | 1.09                                                                |
| 7                                                                   | Chhattisgarh                                                        | 205.68                                                              | 247.29                                                              |
| 8                                                                   | Dadra and Nagar Haveli                                              | 10.06                                                               | 9.79                                                                |
| 9                                                                   | Daman and Diu                                                       | 3.23                                                                | -                                                                   |
| 10                                                                  | Delhi                                                               | 430.77                                                              | 223.81                                                              |
| 11                                                                  | Goa                                                                 | 9.20                                                                | 7.57                                                                |
| 12                                                                  | Gujarat                                                             | 463.07                                                              | 789.34                                                              |
| 13                                                                  | Haryana                                                             | 308.03                                                              | 297.11                                                              |
| 14                                                                  | Himachal Pradesh                                                    | 51.12                                                               | 76.46                                                               |
| 15                                                                  | Jammu and Kashmir                                                   | 12.33                                                               | 28.23                                                               |
| 16                                                                  | Jharkhand                                                           | 119.00                                                              | 153.80                                                              |
| 17                                                                  | Karnataka                                                           | 825.80                                                              | 622.13                                                              |
| 18                                                                  | Kerala                                                              | 207.09                                                              | 174.65                                                              |
| 19                                                                  | Lakshadweep                                                         | -                                                                   | -                                                                   |
| 20                                                                  | Madhya Pradesh                                                      | 116.22                                                              | 221.88                                                              |
| 21                                                                  | Maharashtra                                                         | 2,105.11                                                            | 1,885.19                                                            |
| 22                                                                  | Manipur                                                             | 8.38                                                                | 4.36                                                                |
| 23                                                                  | Meghalaya                                                           | 13.36                                                               | 4.06                                                                |
| 24                                                                  | Mizoram                                                             | -                                                                   | 0.15                                                                |
| 25                                                                  | Nagaland                                                            | 0.55                                                                | 2.99                                                                |
| 26                                                                  | Odisha                                                              | 631.10                                                              | 463.77                                                              |
| 27                                                                  | Puducherry                                                          | 4.30                                                                | 3.84                                                                |
| 28                                                                  | Punjab                                                              | 105.95                                                              | 42.62                                                               |
| 29                                                                  | Rajasthan                                                           | 488.79                                                              | 401.20                                                              |
| 30                                                                  | Sikkim                                                              | 8.42                                                                | 11.08                                                               |
| 31                                                                  | Tamil Nadu                                                          | 626.07                                                              | 575.94                                                              |
| 32                                                                  | Telangana                                                           | 215.17                                                              | 310.24                                                              |
| 33                                                                  | Tripura                                                             | 7.16                                                                | 5.00                                                                |
| 34                                                                  | Uttar Pradesh                                                       | 350.04                                                              | 526.84                                                              |
| 35                                                                  | Uttarakhand                                                         | 84.30                                                               | 105.20                                                              |
| 36                                                                  | West Bengal                                                         | 174.72                                                              | 168.83                                                              |
| 37                                                                  | NEC/ Not mentioned*                                                 | 23.11                                                               | 172.22                                                              |
| 38                                                                  | PAN India**                                                         | 8,688.78                                                            | 6,810.77                                                            |
| 39                                                                  | PAN India (Centralised Funds as mentioned in Schedule VII)          | 1,262.90                                                            | 2,629.15                                                            |
| Grand Total                                                         | Grand Total                                                         | 18,473.41                                                           | 17,672.40                                                           |

(Data upto 30.09.2022) [Source: National CSR Data Portal]

*Companies did not specify the name of State where projects were undertaken.

**Companies  indicated  name  of  more  than  one  State  where  projects  were undertaken.

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