New Delhi, 12 December 2021: Top 25 Central Public Sector Enterprises (CPSEs) have been spending more than 15 percent of Corporate Social Responsibility (CSR) money in India annually. This was revealed by a union minister during the ongoing parliament session. This highlights the importance of public sector companies in India’s CSR arena.
Given the fact that every year around 20,000 companies contribute towards the social good through their CSR activities, the CSR contribution of 25 CPSEs is quite significant. In 2016-17, 19,552 companies spent Rs 14,344 crore on 23,076 CSR projects. Similarly, 21,517 and 25,099 companies participated in CSR activities in 2017-18 and 2018-19 respectively. In the subsequent year, 22,531 companies spent Rs 24,689 crore on 34,828 CSR projects.
Out of this, these 25 top CPSEs spent around 17 per cent every year except 2020-21, a year full of unprecedented events. Also, the year was marred by pandemic. Like many others, the Indian government also ordered a complete lockdown. And most importantly, details of 2020-21 are yet not complete.
The interesting fact emerged when a few parliamentarians raised the question in Lok Sabha on Monday. DM Kathir Anand and T Sumathy asked the government of India about total funds allocated towards Corporate Social Responsibility (CSR) by the top 25 Central Public Sector Enterprises (CPSEs) in the country during the last five years.
In response, Rao Inderjit Singh, Minister of State in the Ministry of Corporate Affairs shared the CSR expenses of 25 top CPSEs.
25 CPSEs CSR expenditure Vs total CSR expenditure in India
|
Financial Year
|
Top 25 CPSE’s CSR Spend (In Rs crore)
|
Country’s total CSR spend
(in Rs crore)
|
(%)
|
|
2016-17
|
2842.45
|
14,344
|
19.81
|
|
2017-18
|
2933.79
|
17,098
|
17.15
|
|
2018-19
|
3504.98
|
20,150
|
17.39
|
|
2019-20
|
4375.80
|
24,689
|
17.72
|
|
2020-21*
|
524.94
|
8,828
|
5.94
|
Data upto 30.09.2021
Subsequently, The CSR Universe compared the data with total annual CSR expenditure in India. The comparative analysis shows the importance of CPSEs in India’s CSR expenditure.
These parliamentarians also asked about the steps taken by the Government to provide and utilise the CSR funds from CPSEs to mitigate the Covid crisis and Covid care management. In response, the minister of state responded saying, “The Ministry vide General Circular no.10/2020 dated 23.03.2020 had clarified that CSR funds may be spent by the companies for various activities related to COVID-19 under promoting healthcare including preventive healthcare and sanitation, and disaster management respectively.”
The Ministry had also clarified that spending of CSR funds for setting up makeshift hospitals and temporary COVID care facilities and ‘creating health infrastructure for COVID care’, ‘establishment of medical oxygen generation and storage plants’, ‘manufacturing and supply of Oxygen concentrators, ventilators, cylinders and other medical equipment for countering COVID-19’ and COVID-19 vaccination for persons other than the employees and their families, are eligible CSR activities.”
