Education the most preferred sector with investments worth Rs 2042 crore under CSR in FY2016

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

It has reported that 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.

Pranav Haldea, managing director, Prime Database, said that 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 Rs 2,396 crore in FY16, said Haldea.

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

India Inc’s CSR spend up 28% in FY16 According to a law enacted in 2014, all companies with net worth of at least Rs 500 crore and annual revenue above Rs 1,000 crore or net profit of Rs 5 crore need to invest at least two per cent of their average net profit in the past three years on CSR projects.

The law is applicable to all companies with a net worth of at least Rs 500 crore, besides covering corporate entities that have revenue earnings above Rs 1,000 crore. It is also applicable to companies with a net profit of Rs 5 crore are covered under the CSR law.