Maharashtra, Reliance take top slots even as CSR spend plunges in FY21

As the COVID pandemic disrupted lives and economic activity, the nation saw a halving of Corporate Social Responsibility (CSR) spending by companies. Against ₹20,150.27 crore in fiscal 2018-19 and ₹24,688.66 crore in 2019-20, Indian companies spent just ₹8,828.11 crore in 2020-21 toward CSR activities. The whopping 64% decline last fiscal represents the lowest CSR spend in recent years.

While Maharashtra got the top slot in terms of total CSR spending, Mizoram took the bottom-most one. Among companies, Reliance Industries Ltd (RIL), the flagship company of the Mukesh Ambani group, spent the most on CSR.

In 2014, the Centre mandated corporate entities to allot 2% of their net profits — taken as an average of the preceding three fiscal years — on select social causes. These typically cover programmes related to rural welfare, health and education, among others.

State-wise performance

Among States, Maharashtra witnessed the maximum CSR spending in FY21, said Rao Inderjit Singh, Minister of State for Corporate Affairs, in a written reply in the Lok Sabha. The State spent ₹1,100.59 crore last fiscal, against ₹3,400.48 crore in FY20.

After Maharashtra came Haryana, Andhra Pradesh, Kerala, Uttar Pradesh and Tamil Nadu. While the first five saw their CSR spend fall by roughly 50%, Tamil Nadu’s tumbled by around 75%, from ₹1,110.15 crore in FY20 to ₹277.36 crore in FY21.

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At the bottom rung in terms of CSR spend were Mizoram, Dadra and Nagar Haveli and Daman and Diu, Andaman & Nicobar, Delhi and Tripura. Delhi, among the worst hit by the COVID second wave, saw CSR spends fall to ₹122.82 crore last fiscal, from ₹927.51 crore in FY20.

The capital, which suffered a severe scarcity of ICU and oxygen beds when the pandemic peaked, has since seen corporates make contributions in this regard. CSR spending norms have been amended to cover a wider range of schemes such as COVID care facilities, and production of medical equipment such as ventilators.

It may be noted that sometimes companies do not specify in which State their CSR spend occurred. Else, their programmes are spread across two or more States. In such instances, the spend is termed ‘Pan India’, and not categorised under any of the States.

Tatas, Ambanis spend the most

Among business conglomerates, the Tatas spent the most on CSR, at around ₹1,000 crore in FY21. However, among individual companies, RIL topped the list, at ₹922 crore. Of this, ₹561 crore went as contribution to relief programmes run by the Union government and various State governments.

Tata Consultancy Services came in next at ₹674 crore. IT services firm Infosys spent ₹362 crore and diversified group ITC, ₹335 crore, Corporate Affairs Ministry data revealed.

As COVID brought the economy to a standstill, companies had to pivot their financial targets to employee welfare schemes and pandemic-related programmes. A big chunk of their CSR funds went to addressing these issues. For instance, in many States, companies pitched in with medical infrastructure and set up oxygen plants.