No CSR funds spent in five backward districts of Telangana

HYDERABAD: No corporate social responsibility (CSR) funds were spent in five backward districts of Telangana in 2020-21. According to the CSR data portal of the Ministry of Corporate Affairs (MCA), a total of Rs 343 crore was spent in the last fiscal year across Telangana.

Dr Reddy’s, GMR International and ICICI Prudential are among the biggest CSR spenders in Telangana. An analysis revealed that education, health, poverty, eradicating hunger and malnutrition are the main areas where CSR funds have been spent. Since 2017, the lowest spending was recorded in the last fiscal year, hit by the pandemic.

Jagtial, Peddapalli, Jayashankar Bhupalpally, Nagarkurnool and Jogulamba Gadwal are the five districts with the least spent funds indicating that there were not many industries in these districts. Majority of the funds were spent in Hyderabad, Rangareddy, Sangareddy and Medak as CSR rules state that the funds should be sent to the local areas of the company.

Experts said that for IT and e-commerce companies, it would be difficult to decide the local area and hence they undertake projects in remote areas.

According to the Companies Act, companies with a minimum net worth of Rs 500 crore or turnover of Rs 1,000 crore or net profit of Rs 5 crore must spend at least 2% of their average profit of the three years in CSR activities every year. year.

Mr Padmanabha Reddy, retired IFS manager, said: “According to law, the government has no direct role in approving and implementing a company’s CSR projects. However, politicians tend to pressure companies to decide what activity the money should be sent to.

He added: ‘Local area preference in the law is only a guideline and is not mandatory in nature and businesses must balance local area preference with national priorities.’ The MCA monitors compliance with CSR provisions. For any violations, the government can take action against these non-compliant companies, experts said. (India Time)

Source:
India CSR I February 26, 2022