India Inc’s CSR spend up 28% in FY16

THE TOP 10 COMPANIES IN TERMS OF ABSOLUTE CSR SPENDING

A gradual uptick in corporate earnings has led to a 28 per cent surge in corporate social responsibility (CSR) spending by listed entities in 2015-16.

According to data compiled by Prime Database, these companies spent ~8,345 crore on various CSR activities in 2015-16, against ~6,526 crore the previous year. Education was the most preferred cause, attracting ~2,042 crore or nearly a fourth of the total spending, followed by spending on preventing human diseases and viruses, of ~1,637 crore. Contribution to the Prime Minister's National Relief Fund saw a five-fold jump to ~869 crore.

Pranav Haldea, managing director, Prime Database, said the increase in CSR spending was a trend across sectors and types of companies. CSR spending by public sector undertakings (PSUs) saw a rise of 41 per cent. Overall, 47 PSUs spent ~2,396 crore in FY16, said Haldea.

In absolute spending, Reliance Industries spent ~651.6 crore on CSR, the highest by a corporate group in FY16. Followed by government-owned NTPC and Oil & Natural Gas Corporation, of ~491.8 crore and ~409 crore.

According to a law enacted in 2014, all companies with net worth of at least ~500 crore and annual revenue above ~1,000 crore or net profit of ~5 crore need to invest at least two per cent of their average net profit in the past three years on CSR projects.