FM Arun Jaitley hopes CSR spending potential of Rs 14000 crore

Under the Companies Act, organization with a profit of over Rs 5 crore in the last three years have to mandatorily spend two per cent of it on CSR initiatives.

CSR Cartoon by Prashant, Raipur. Copy Right-Cartoon Watch and India CSR Network
CSR Cartoon by Prashant, Raipur. Copy Right-Cartoon Watch and India CSR Network

NEW DELHI: Union Finance Minister Arun Jaitley on Tuesday hoped that spending by larger business on its corporate social responsibility (CSR) initiatives could increase to Rs 14,000 crore.

“Over the last three to four years that we have seen it function…if you look at India’s large corporates with profitability of Rs. 500 crore and above, you have a potential of about Rs. 14,000 crore of CSR activities,” he said at an event of Axis Bank.

Expressing hope that this amount would increase further, the Minister said that it aids the government’s programmes in the social sector.

He has urged corporates to take up CSR initiatives in challenging areas with difficult terrain.

“Education is one area you can see feedback coming in the medium term itself. You don’t have to wait for generations before the advantages come back,” he said.

He also complimented efforts by Axis Bank and said that its CSR initiative to upgrade of 100 schools in Leh will promote education in the area.

The Minister also noted that many organizations had opposed the introduction of the clause for CSR in the Companies Bill. So some of the provisions were diluted and a few dispensations were given for special reasons.

According to Data available with the Govt., during the year 2015-16, more than 2000 companies collectively spent Rs 9822 crore in social development projects.

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