VISAKHAPATNAM: Various private companies have spent about ₹3,720 crore under their corporate social responsibility head in the last seven years in Andhra Pradesh.
The allocations to Andhra Pradesh have almost doubled in these seven years – from ₹332.6 crore in the 2014-15 financial year to ₹626.8 crore in 2020-21.
About 30% of the total CSR funds expended by these organisations during this period in India have gone to Maharashtra, Karnataka, Gujarat, Andhra Pradesh, and Tamil Nadu. The overall spending in India witnessed a threefold increase during these years, from ₹7,249 in 2014-15 to ₹20,416 crore in 2020-21.
Even the full-blown Covid-19 pandemic seems to have not much affected the CSR plans of the private entities in 2020-21 as the year recorded a marginal increase of spending compared to the earlier year. In fact, the Union government also made funds devoted to the Covid-19 vaccination an eligible CSR activity in 2021.
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As an aspirational district, Visakhapatnam alone got ₹52.63 crore CSR funds in the 2020-21. These funds allocated to Visakhapatnam were spent in various sectors such as education, encouraging sports, rural development, gender equality initiatives, etc.On the public sector undertakings’ front, the Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam steel plant, spent Rs 28 crore for CSR spending in the last three years, till the 2020-21 financial year.
RINL carried out activities in areas such as health, drinking water, rural development, slum area development, etc.
A company having a net worth of ₹500 crore or more, a turnover of ₹1,000 crore or more, or a net profit of ₹ 5 crore or more during the immediately preceding financial year is required to comply with CSR provisions specified under section 135(1) of the Companies Act, 2013.
The mandatory provision of CSR came into effect from April 1, 2014.
A faculty in the political sciences department, Andhra University, Dr V Hari Babu, said that as CSR has been mandated for certain companies based on a set of parameters, this is directly benefitting the society.
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“Companies are spending a good amount under CSR on rural areas and slums. A special thrust is being given to education, health, improvement of skills and livelihood opportunities, etc. CSR is nothing but business responsibility towards the people, society and even the environment,” said Dr Hari Babu.
