Lok Sabha Question No. 4173 (UNSTARRED), answered on 2023-03-27
Subject: Use of CSR Funds
Ministry: CORPORATE AFFAIRS
Asked by: Shriniwas Dadasaheb Patil

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 4173

## ANSWERED ON MONDAY, MARCH 27, 2023/CHAITRA 6, 1945 (SAKA)

## USE OF CSR FUNDS

## QUESTION

## 4173. SHRI SHRINIWAS PATIL:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a)    whether the analysis of spending of Corporate Social Responsibility (CSR) funds by  various  companies  reveals  a  tendency  to  spend  funds  in  the  immediate vicinity of the operational location of the respective companies;
- (b)   if so, whether such practice creates a concentration of development projects in areas which are already industrialized leading to a further disparity between industrialised and non-industrialized areas and if so, the details thereof;
- (c)  whether the Government proposes to bring in an amendment to the CSR rules making it mandatory to spend a certain portion of the CSR funds of the company in same State but in different districts away from the immediate operational location of the company; and
- (d)   if so, the details thereof?

## 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) & (b): 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 first proviso to 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.  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 Government does not issue any specific direction to the companies to spend in any particular geographical area or activity. Further, in the CSR framework, there is no distinction between  industrialized  and  non-industrialized  areas.  However,  on  the  basis  of annual filings made by Companies in the MCA21 registry, State/UT-wise details of CSR spent by companies during the FY 2018-19, 2019-20 & 2020-21 are at Annexure.

(c) & (d): No Such proposal is under consideration.

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|                 | State/UT-wise CSR Expenditure (in Rs. Cr.)                | State/UT-wise CSR Expenditure (in Rs. Cr.)   | State/UT-wise CSR Expenditure (in Rs. Cr.)   |             |
|-----------------|-----------------------------------------------------------|----------------------------------------------|----------------------------------------------|-------------|
| S.N.            | State/UT                                                  | FY 2018-19                                   | FY 2019-20                                   | FY 2020-21  |
| 1               | Andaman and Nicobar                                       | 0.82                                         | 1.29                                         | 2.86 715.81 |
| 2               | Andhra Pradesh                                            | 665.97                                       | 710.12                                       |             |
| 3               | Arunachal Pradesh                                         | 24.56                                        | 18.02                                        | 10.58       |
| 4               | Assam                                                     | 210.00                                       | 285.00                                       | 167.78      |
| 5               | Bihar                                                     | 137.57                                       | 110.48                                       | 79.30       |
| 6               | Chandigarh                                                | 11.46                                        | 15.58                                        | 13.19       |
| 7               | Chhattisgarh                                              | 149.35                                       | 269.68                                       | 307.83      |
| 8               | Dadra and Nagar Haveli                                    | 13.48                                        | 18.34                                        | 21.98       |
| 9               | Daman and Diu                                             | 6.25                                         | 9.53                                         | 5.25        |
| 10              | Delhi                                                     | 750.76                                       | 829.50                                       | 713.58      |
| 11              | Goa                                                       | 46.77                                        | 43.91                                        | 41.78       |
| 12              | Gujarat                                                   | 1,082.18                                     | 984.15                                       | 1,443.62    |
| 13              | Haryana                                                   | 378.11                                       | 536.57                                       | 542.45      |
| 14              | Himachal Pradesh                                          | 78.79                                        | 78.61                                        | 105.01      |
| 15              | Jammu and Kashmir                                         | 36.44                                        | 25.27                                        | 35.47       |
| 16              | Jharkhand                                                 | 109.80                                       | 155.21                                       | 210.27      |
| 17              | Karnataka                                                 | 1,252.23                                     | 1,448.08                                     | 1,265.05    |
| 18              | Kerala                                                    | 354.78                                       | 298.56                                       | 286.52      |
| 19              | Lakshadweep                                               | 0.39                                         | -                                            | 0.01        |
| 20              | Madhya Pradesh                                            | 243.55                                       | 215.33                                       | 354.50      |
| 21              | Maharashtra                                               | 3,147.66                                     | 3,348.82                                     | 3,426.31    |
| 22              | Manipur                                                   | 7.81                                         | 14.21                                        | 10.30       |
| 23              | Meghalaya                                                 | 16.54                                        | 17.65                                        | 12.46       |
| 24              | Mizoram                                                   | 0.11                                         | 0.25                                         | 0.97        |
| 25              | Nagaland                                                  | 2.12                                         | 5.10                                         | 3.57        |
| 26              | Odisha                                                    | 697.91                                       | 716.81                                       | 567.63      |
| 27              | Puducherry                                                | 9.15                                         | 11.32                                        | 11.97       |
| 28              | Punjab                                                    | 166.85                                       | 188.52                                       | 137.29      |
| 29              | Rajasthan                                                 | 595.49                                       | 734.12                                       | 657.86      |
| 30              | Sikkim                                                    | 5.87                                         | 10.99                                        | 15.16       |
| 31              | Tamil Nadu                                                | 877.08                                       | 1,072.02                                     | 1,145.67    |
| 32              | Telangana                                                 | 428.06                                       | 445.80                                       | 624.22      |
| 33              | Tripura                                                   | 23.06                                        | 9.40                                         | 9.29        |
| 34              | Uttar Pradesh                                             | 521.32                                       | 577.91                                       | 870.13      |
| 35              | Uttarakhand                                               | 172.31                                       | 124.70                                       | 155.43      |
| 36              | West Bengal                                               | 382.23                                       | 422.95                                       | 464.65      |
| 37              | NEC/ Not mentioned*                                       | 4.44                                         | 26.41                                        | 176.20      |
| 38              | PAN India**                                               | 6,429.81                                     | 9,385.41                                     | 7,684.81    |
| 39              | Contribution to Funds included in Schedule VII of the Act | 1,155.86                                     | 1,789.15                                     | 3,417.89    |
| Grand Total (in | Cr.)                                                      | 20,196.95                                    | 24,954.78                                    | 25,714.65   |

(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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