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Home Corporate Social Responsibility

‘60% of total CSR expenditure done through implementing agencies, data of NGOs not maintained by MCA

However, she furnished details of CSR allocation in the past three years till September 30, 2020 which is around Rs 40,367.18 crore. “Of the total annual CSR spent, approximately 60% of the CSR expenditure has been done through implementing agencies,” she said.

India CSR by India CSR
March 18, 2021
in Corporate Social Responsibility
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Of the total annual CSR corpus spent in the past three years, approximately 60% expenditure has been done through implementing agencies, informed Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs on March 17, 2021 in Loksabha.

She said that the Government provides the broad framework for Corporate Social Responsibility (CSR) through Section 135 of the Companies Act, 2013 (‘Act’), Schedule VII of the Act and Companies (CSR Policy) Rules, 2014. Section 135 of the Act read with Rule 4 of the Companies (CSR Policy) Rules, 2014 prescribes that the Board of the company is empowered to undertake its CSR activities either by itself or through implementing agencies as mentioned in the said rule. As per the provisions, CSR mandated companies are required to file the details of CSR activities annually in the MCA21 registry.

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Responding to these queries, the union minister said, “The Ministry does not maintain the data of organisations working in the social sectors including the Non-Governmental Organizations (NGOs) involved in the CSR activities. The Companies (CSR Policy) Rules, 2014 has been amended recently and registration of implementing agencies in the MCA21 registry is mandatory with effect from April 1, 2021.”

She also admitted that the Ministry of Corporate Affairs (MCA)- which keeps tab over implementation of CSR programmes, does not maintain the data of organisations working in the social sectors including the Non-Governmental Organizations (NGOs) involved in the CSR activities.

The Union Minister gave these details in Rajya Sabha while responding to a query asked by Dr AmeeYajnik, a member of Parliament from Indian National Congress representing Gujarat.

Yajnik asked about the number of organisations working in the social sectors including Non-Governmental Organizations (NGOs) involved in Corporate Social Responsibility (CSR) projects such as environment, skill development, water and sanitation through CSR activities across the country, State/UT-wise.

She also asked the details of the funds sanctioned/allocated/ utilized by the above said organisations/NGOs during the last three years and the current year.

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