Shivakumar Urges Corporates to Channel Rs 8,000 Crore in CSR Funds to Build Model Schools
BENGALURU (India CSR): In a bustling review meeting in Bengaluru on May 31, 2025, Karnataka’s Deputy Chief Minister D K Shivakumar sent shockwaves through the corporate sector by exposing an “illegal” practice of misusing Corporate Social Responsibility (CSR) funds. Addressing deputy commissioners and Zilla Panchayat CEOs, Shivakumar expressed dismay over the slow progress of his ambitious project to build 500 model Karnataka Public Schools (KPS) using CSR contributions. For rural communities relying on these schools for quality education, the revelation underscores a critical need for transparency and commitment from corporates to uplift Karnataka’s future.
Uncovering CSR Misuse
Shivakumar revealed a disturbing trend: some corporates in Karnataka donate CSR funds to private non-profits outside the state via cheques, only to reclaim up to 50% of the amount in cash. “This is illegal and a gross misuse of funds meant for social good,” he declared, citing the state’s Rs 8,000 crore annual CSR pool. He emphasized that these funds should prioritize local development, particularly the construction of model schools to enhance education access. Despite clear government directives, corporates have only committed Rs 250 crore, with Rs 126.21 crore disbursed for the KPS project.
A Vision for Education
The Deputy CM proposed a practical solution to engage corporates directly in school development. “We don’t want their money handed to the government. Let them build one school for every three gram panchayats. We’ll provide land and designs, and they can even name the school after themselves,” Shivakumar said. In his Kanakapura constituency, 13 schools are under construction at Rs 9-12 crore each, but progress lags due to limited corporate interest. This initiative aims to create modern, well-equipped schools to bridge educational gaps in rural Karnataka.
Mobilizing Resources
To accelerate the KPS project, the Karnataka government appointed two IAS officers on May 31, 2025: Gunjan Krishna as the coordinating officer and Khushboo Goel Chowdhary as the chief executive officer for CSR mobilization. Their mandate is to engage corporates and ensure funds are directed toward school infrastructure. Shivakumar urged officials to proactively reach out to companies, emphasizing accountability and local impact over external donations.
The Road Ahead
Shivakumar’s exposé highlights a critical juncture for Karnataka’s CSR ecosystem. With Rs 8,000 crore available annually, the potential to transform education is immense, but it requires corporate commitment to ethical practices. By prioritizing transparency and local development, Karnataka aims to set a national benchmark for CSR-driven social impact, ensuring every child has access to quality education.
(India CSR)
