Companies Spent INR 1.09 Trillion Towards CSR Activities in 7 Years: MCA

According to the corporate affairs ministry, corporations have spent Rs 1.09 lakh crore (US$ 14.3 billion) on different CSR initiatives, including those linked to health, education, and poverty eradication, under the companies law in the previous seven financial years.

Under the Companies Act of 2013, a certain class of profitable organisations must contribute at least 2% of their three-year annual average net profit to corporate social responsibility (CSR) initiatives throughout each fiscal year.

Rao Inderjit Singh, Minister of State for Corporate Affairs, stated on Monday that corporations have responded favourably and showed encouraging signals in embracing a culture of social responsibility since the CSR provision was enacted in April 2014.

“This is manifested through the increase in CSR spent by the companies during the period 2014-15 to 2020-21. During this period, companies have spent around Rs 1.09 lakh crore (US$ 14.3 billion) in different activities…,” he said in a written reply to the Lok Sabha.

According to filings filed by corporations in the MCA21 register through September 30, 2021, companies spent a total of Rs 85,109.09 crore (US$ 11.2 Billion) on CSR during the financial years 2016-17 to 2020-21, Singh added.

During the same time period, the top 100 companies spent Rs 46,654.52 crore (US$ 6.14 billion) of the total amount.

Singh stated the goal behind the CSR architecture is to engage corporations as partners in the country’s socio-economic development by utilising their managerial efficiency, best practices, technology, and innovation in the delivery of public goods and services.