Lok Sabha Question No. 1733 (UNSTARRED), answered on 2023-02-13
Subject: CSR spending in Rural Areas
Ministry: CORPORATE AFFAIRS
Asked by: M V V Satyanarayana, Magunta Sreenivasulu Reddy, Chandra Sekhar Bellana

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 1733

ANSWERED ON MONDAY, FEBRUARY 13, 2023/ MAGHA 24, 1944 (SAKA)

## CSR SPENDING IN RURAL AREAS

## QUESTION

1733. SHRI M.V.V. SATYANARAYANA:

SHRI MAGUNTA SREENIVASULU REDDY:

SHRI CHANDRA SEKHAR BELLANA:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) the details of the Corporate Social Responsibility (CSR) expenditure in urban and rural areas during the last five years;
- (b) whether the Government has taken any steps to promote CSR expenditure in rural areas;
- (c) if so, the details thereof and if not, the reasons therefor;
- (d) whether the Government has conducted any studies or research to determine how CSR activities can be enhanced in rural areas; and
- (e) if so, the details thereof and if not, the reasons therefor?

## 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): All data related to Corporate Social Responsibility (CSR) filed by companies in MCA21 registry is available in public domain at www.csr.gov.in. The Ministry does not  maintain  the  CSR  expenditure  data  separately  urban  and  rural  area  wise. However, on the basis of annual filings made by the companies in the MCA 21 registry, the details of total CSR expenditure by the Companies cumulatively in urban and rural areas during the last five Financial Years (FY) is as follows.

| Particulars                       | FY 2016-17   | FY 2017-18   | FY2018-19   | FY 2019-20   | FY 2020-21   |
|-----------------------------------|--------------|--------------|-------------|--------------|--------------|
| CSR Expenditure (Amount in Crore) | 14,394.55    | 17,098.20    | 20,196.95   | 24,954.78    | 25,714.65    |

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

Regarding CSR data for the FY 2021-22, the companies are required to file the same on or before 31.03.2023.

(b) & (c):  Schedule VII of the Companies Act, 2013 ('Act') indicates the eligible list of activities  that  can  be  undertaken  by  the  companies  as  CSR.  'Rural  Development Projects' is an eligible CSR activity under item no. (x) of Schedule VII of the Act. An amount  of  Rs.  12,301.25  crores  have  been  spent  by  the  companies  on  rural development activities from FY 2014-15 to FY 2020-21.

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  of  the  company based on the recommendation of its CSR Committee. The CSR mandated companies can undertake any of the activities mentioned in Schedule VII subject to fulfilment of provisions  as  contained  in  the  Act  and  Companies  (CSR  Policy)  Rules,  2014.  The Government does not issue any specific direction to the companies to spend in any particular area or activity.

Further, as per input provided by DPE, it has been issuing guidelines from the financial year 2018-19 to all administrative Ministries and CPSEs for adopting a theme based focussed approach every year on CSR expenditure for such thematic programmes should  be  around  60%  of  annual  CSR  expenditure  of  CPSEs  and  the  aspirational districts as identified by NITI Aayog may be given preference in CSR expenditure.

(d) & (e): The government has not conducted any studies or research explicitly in this regard. However, Indian Institute of Corporate Affairs (IICA) had conducted a study on the impact of CSR expenditure by 100 companies over a span of three financial years i.e from 2014-15 to 2016-2017 in the tribal and backward areas of five states, namely Chattisgarh, Odisha, Jharkhand, Gujarat and Rajasthan.

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