CSR in Bihar: Bihar received only 0.62% of the total CSR spending in India.
NEW DELHI (India CSR): In the five-year period from 2015 to 2019, Bihar received only Rs 440 crore in CSR spending, while the total CSR spending across India during the same period was Rs 71,277 crore. This means that Bihar received only 0.62% of the total CSR spending in India.
The low CSR spending in Bihar is a reflection of the state’s poor economic condition. Bihar is one of the poorest states in India, and it has a high unemployment rate. This lack of economic opportunities has led to a high rate of migration from Bihar to other states.
The low CSR spending in Bihar is also a reflection of the state’s lack of corporate investment. Bihar has a small industrial base, and there are not many large companies operating in the state. This lack of corporate investment has made it difficult for Bihar to attract CSR funding from companies.
The low CSR spending in Bihar is a significant problem for the state. CSR spending can help to improve the lives of people in Bihar by funding projects in areas such as education, healthcare, and infrastructure. The lack of CSR spending in Bihar is a missed opportunity to improve the lives of the people of the state.
Here are some of the things that can be done to improve CSR spending in Bihar:
- The state government can create a more favorable environment for corporate investment. This can be done by providing tax breaks and other incentives to companies that invest in Bihar.
- The state government can also work with companies to identify and develop CSR projects that would benefit the people of Bihar.
- The state government can also raise awareness of CSR among companies and individuals. This can be done through public education campaigns and other initiatives.
By taking these steps, the state government can help to increase CSR spending in Bihar and improve the lives of the people of the state.
This low figure also signifies the ground reality when it comes to employment opportunities in the state, as there are not just enough companies and businesses that are functioning in the state.
Bihar considered a BIMARU state (other states clubbed in this informal grouping are Madhya Pradesh, Rajasthan, and Uttar Pradesh), has performed the worst among these four states. In the same time period (2015-19), Madhya Pradesh saw CSR to the amount of Rs 1,007 crore being spent (1.41%), Rajasthan witnessed Rs 1,936 crore of CSR activities (2.71%), while Rs 1,700 crore (2.38%) was spent in Uttar Pradesh in the corresponding five years.
West Bengal, which is also considered an economically weaker state, saw Rs 1,550 crore (2.17) of CSR funds being spent across the state.
As per The Companies Act, firms with a net worth of Rs 500 crore or more, or a turnover of Rs 100 crore or more, or a net profit of Rs 5 crore or more during the immediately preceding financial year are required to spend 2% of their profits on Corporate Social Responsibility activities.
In the Patna region, among the top four CSR spenders are all government bodies, including the Power Grid Corporation of India, Bihar State Beverages Corporation Limited, Bihar Rajya Pul Nirman Nigam Limited and NTPC Limited.
In contrast, states like Maharashtra got more CSR funds in one year than Bihar got in the last five years. In 2019 alone, Maharashtra witnessed CSR spending to the tune of Rs 2846.73 crore, Karnataka saw Rs 1222.44 crore being spent on various CSR activities, while the figure for Gujarat was Rs 1059.41 crore.
In 2019, the pan-India CSR spent was Rs 18,653.48 crore, out of which the amount spent in Bihar was a paltry 136.43 crore.
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