The PM CARES Fund also receives donations from individuals and other organizations, besides companies.
Corporate Social Responsibility (CSR) has been an area of growing interest among stakeholders in recent years. These findings shed light on the contributions made by government-run firms, the controversy surrounding the fund, the lack of transparency in CSR spending, and the total CSR contribution to the PM CARES Fund, among other insights.
This article explores the donations made by listed entities to the PM CARES Fund in the context of the easing of CSR disclosure rules in annual reports.
1. Majority of donations made by Govt.-run firms
According to an analysis, government-run firms accounted for the majority of donations that listed entities made to the PM CARES Fund. They contributed at least Rs 2,913.6 crore between 2019-20 and 2021-22. The report identified 57 companies in which the government had a significant stake to reach the aforementioned amount. The contribution of these 57 companies accounts for more than the cumulative donation made by 247 other firms to the fund, which is 59.3 per cent of the total donation of Rs 4,910.5 crore.
2. Top five donors and controversy around the fund
The top five donors among the list of 57 companies are Oil and Natural Gas Corporation (Rs 370 crore), NTPC (Rs 330 crore), Power Grid Corporation of India (Rs 275 crore), Indian Oil Corporation (Rs 265 crore), and Power Finance Corporation (Rs 222.4 crore). The fund has been controversial since it was set up in March 2020.
The chairman of the fund is the prime minister, and trustees include the defense minister, home minister, and finance minister. The fund is not controlled by the Government of India, according to a reported submission by the Centre to the Delhi High Court in January 2023. This reiterates a position mentioned in a 2020 judgment by the Supreme Court of India, which noted that the trust does not receive any government money.
The top five donors: PSUs
| Sl No. | Company | Contributions |
| 1. | Oil and Natural Gas Corporation | Rs 370 crore |
| 2. | NTPC Limited | Rs. 330 Crore |
| 3. | Power Grid Corporation of India | Rs 275 crore |
| 4. | Indian Oil Corporation | Rs 265 crore |
| 5. | Power Finance Corporation | Rs 222.4 crore |
3. Less transparency in CSR spending
Scrutiny over CSR spending gains significance in light of the new norms. The government in September 2022 amended norms to limit the amount of information that companies have to put out in their annual reports on CSR spending.
Pranav Haldea, managing director at PRIME Database, said the recent amendments in the CSR provisions allow less transparency. “Companies no longer have to provide as many details to shareholders on where CSR spends are going. Greater disclosures for the donating companies, as well as large recipients, would be positive,” he said.
4. Donations from individuals and other organizations
The PM CARES Fund also receives donations from individuals and other organizations, besides companies. It collected Rs 3,076.6 crore in 2019-20, according to disclosures on its website. This rose to Rs 10,990.2 crore in 2020-21 and was Rs 9,131.9 crore in 2021-22. The bulk of the amount appeared to have come from corporate India’s CSR budgets in its first year.
5. Total CSR contribution to the PM CARES Fund
Total CSR contribution to the PM CARES Fund was Rs 1,577.8 crore or more than half the collection in 2019-20.
Total CSR contributions from NSE-listed companies rose to Rs 2,471.6 crore in 2020-21, and the figure for 2021-22 was Rs 861.1 crore.
PM CARES Fund spending
The PM CARES Fund spent a limited amount (Rs 2,049) in the few days it was operational in 2019-20. This rose to Rs 3,976.2 crore in 2020-21 and Rs 3,716.3 crore in 2021-22.
