'Big 500' corporates account for 90% CSR spend: Survey
Mumbai, July 4: The 'big 500' companies in India contribute the lion's share of more than 90 per cent of the total Corporate Social Responsibility (CSR) spends in India, and just 20 top corporations account for over 45 per cent, a new survey revealed on Wednesday.
In terms of the geographical beneficiaries, Maharashtra received the biggest chunk of the total CSR fund spent in the country, followed by Rajasthan, Karnataka and Gujarat and together they account for around one-third of the total funds.
However, the northeastern states of Nagaland, Meghalaya, Mizoram and Tripura, and the Union Territories have received the lowest CSR funding so far.
The survey on the CSR activities was conducted by CSRBOX and NGOBOX, which revealed that by March 2019, CSR spending will cross Rs 50,000 crore mark.
Similarly, the CSR compliance is also expected to improve and fall in the range of 97-98 per cent by net year 2019-2020, according to the survey, said CSRBOX-NGOBOX CEO Bhomik Shah.
"The research examined the CSR spending trend since the applicability of mandatory CSR with the Companies Act, 2103, for companies falling under certain criteria of annual profits or turnover or net worth. According to Ministry of Corporate Affairs, India has between 13,000-15,000 such companies," Shah said.
The survey looked into the prescribed CSR and actual CSR trends in the past four years and projected the number for the current fiscal's CSR spend by the 'Big 500' companies.
The research said that the 'Big 500' will spend over Rs 11,000 crore on social initiatives this year to comply with the CSR rules, Shah added.
The survey predicts that education will be the most favoured area of CSR activity in coming years, followed by skills development, which could be pumped in with Rs 15,000 crore CSR funds between 2014-2019.
Besides, healthcare, water and sanitation initiatives also received substantial CSR attention due to the 'Swachh Bharat Mission' and would receive Rs 14,000 crore by March 2019.
After analyzing CSR portfolios of companies in past four years, Shah said that an upward trend has been noticed for CSR compliance though the funding size for various initiatives is falling, suggesting that companies want to diversify their CSR activities.
"If the new recommendations by Sub-Legal Committee on CSR, constituted by the Ministry of Corporate Affairs in April 2018 are accepted by the government, then companies will not be allowed to carry forward the unspent CSR fund. This will boost the CSR compliance substantially," Shah pointed out.
He explained that in the past, corporates used to write out cheques for government-instituted funds when they lacked expertise on development issues, but the scenario is reversing now with the government taking their support to show impact on ground through CSR interventions and boost official programmes -- the real intention of making CSR mandatory.
"Mandatory CSR has made a lot of change in India's development landscape. It has gradually formalised the corporate philanthropy with emphasis on impacts on the ground. With an average Rs 12,000 crore funding annually, there is a lot that can be done in education, healthcare and rural development areas," said Shah.
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Karnataka CM Siddaramaiah will quit soon, claims state BJP President BY Vijayendra
Bengaluru, Nov 8: Karnataka BJP President B Y Vijayendra on Friday claimed that Chief Minister Siddaramaiah, facing probe in the MUDA site allotment case, will resign soon.
Both Deputy Chief Minister D K Shivakumar and Congress national President M Mallikarjun Kharge are also aware as to when the CM will quit, he said.
He termed Siddaramaiah's reported recent statement that he will continue as CM for the full term, as an attempt aimed at garnering votes from certain communities for the November 13 by-polls for three Assembly segments.
"The Chief Minister, who is an accused, is patting himself on his back. He is trying to instill confidence among legislators (Congress) that he will continue as CM, but Siddaramaiah knows what is the truth. D K Shivakumar and Mallikarjun Kharge know when he will resign," Vijayendra said.
Speaking to reporters here, he said at the time of election, to get the support of certain communities, such statements are made.
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"I don't know whether it is right or not to say this repeatedly, but the Chief Minister's resignation has already been decided," he added.
The opposition has been demanding Siddaramaiah's resignation, following charges against him in the MUDA (Mysuru Urban Development Authority) site allotment case.
There were also behind-the-scenes political activities within the ruling Congress last month, with a few Ministers in the Siddaramaiah Cabinet holding closed door meetings, fueling speculation about leadership change. But such activities came to a halt following instructions from the party high command.
Stating that the stand of the Congress government and the Chief Minister on the Waqf issue and their conduct are being questioned by people and farmers of the state, Vijayendra said they should have responded to trouble faced by farmers.
"But, under the CM's insistence, Zameer Ahmed Khan (Waqf Minister) has taken the lead in robbing land from farmers, its implications will be felt in by-polls," he said.
People of the state are questioning the CM's "anti-farmer attitude", the conspiracy to loot the lands and properties of Mutts, and the "anti-Hindu behaviour" of this government, he further said. "All of this will become a curse for the Congress government and people will turn against them. Let there be no doubts."
Vijayendra expressed confidence about BJP winning in Sandur and Shiggaon Assembly segments, and its alliance partner JD(S) emerging victorious in Channapatna. The three segments will go for by-polls on November 13.
"The Chief Minister and Ministers are somewhat aware that Congress will lose all the three segments..." he claimed.
