‘Via CSR, corporates have a chance to take part in nation building’
LUCKNOW : Former CEO of the National Skill Development Corporation Jayant Krishna on Saturday said that Corporate Social Responsibility (CSR) could prove to be a big vehicle in transforming India, giving corporates a unique opportunity to participate in the process of nation building.
Speaking at a LinkedIn event in the state capital, he said that at present, approximately ₹20,000 crore were being spent by over 20,000 companies on CSR annually.
The top 500 companies contribute to 90% of the total CSR spend while the top 20 corporations account for 45%.
He further informed that the total CSR spending was likely to cross ₹ 50,000 crore by March 2019.
He further said it was mandatory for companies with a net worth of ₹ 500 cr or more, or those with a turnover of ₹ 1,000 cr or more or a net profit of ₹ 5 cr or more in a given financial year to spend 2% of their 3-year average annual net profit on Corporate Social Responsibility (CSR).
“Top five states in terms of CSR expenditure are Maharashtra, Andhra Pradesh, Karnataka, Odisha and Tamil Nadu, accounting for 36% of total CSR. The sectors attracting the majority of funds are skills and livelihood, health, poverty, rural development, environment and gender equality,” he said.
Education is anticipated to be the most favoured area for CSR activity in the coming years, followed by skill development.
The top five companies spending the most on CSR are Reliance
› The sectors attracting the majority of funds are skills and livelihood, health, poverty, rural development, environment and gender equality JAYANT KRISHNA , ex-CEO, NSDC
Industries, NTPC, ONGC, TCS and ITC. Government companies contribute 30% whereas, nongovt. companies contribute 70% of total CSR expenses.
“Approximately 74% of the eligible companies used NGOs for implementing CSR projects whereas almost two-thirds of the companies have less than five dedicated personnel for CSR activities, indicating that the companies have underinvested in building their own capacity,” Krishna said.
However, backward districts attracted only 14% of the CSR expenditure, he informed.