Key Highlights
- CSR spending of listed entities grew 16% to ₹17,967 crore, up from ₹15,524 crore last year.
- HDFC Bank led the spend, investing ₹945.31 crore, followed by Reliance Industries and TCS.
- 98% of companies (1,367) complied with the 2% CSR mandate; 27 companies did not meet the requirement.
- The unspent CSR amount of ₹2,329 crore was diverted to the Unspent CSR Account.
- Sector‑wise allocations showed a 54% rise in environmental sustainability while slum development fell by 72%.
Detailed Insights
The Corporate Social Responsibility (CSR) law, enacted in April 2014, obligates companies with a net worth of ₹500 crore or more, a turnover of ₹1,000 crore or higher, or a net profit of ₹5 crore or above to allocate 2% of their average net profit over the last three fiscal years to socially relevant projects. In FY 2023‑24, the total CSR outlay reached ₹17,967 crore, reflecting a 16% year‑on‑year increase. The figure aligns with a surge in average net profits, which hit ₹9.62 lakh crore across 1,394 firms.
Among the top spenders, HDFC Bank invested ₹945.31 crore, Reliance Industries ₹900 crore, TCS ₹827 crore, and ONGC ₹634.57 crore. Out of 1,394 eligible companies, 1,367 met the CSR requirement, while 27 were non‑compliant. The shortfall of ₹2,329 crore was transferred to the Unspent CSR Account for future allocation.
Sectoral analysis indicates that education received the highest absolute allocation at ₹1,104 crore, followed by healthcare at ₹720 crore. Environmental sustainability saw the most significant percentage growth (54%), whereas sectors such as slum, rural, and armed forces veterans development experienced notable declines. Private sector undertakings (PSUs) contributed ₹3,717 crore in CSR spending across 66 entities.
Experts like Pranav Haldea, Managing Director of PRIME Database, advocate for raising the threshold criteria to focus CSR spending on larger corporations, citing improved business environments and heightened profits.
Key Concepts
- CSR Law: The statutory framework mandating CSR activities for eligible companies.
- Mandatory CSR Spend: The requirement that eligible firms allocate 2% of their average net profit to CSR.
- Unspent CSR Account: A reserve fund where unallocated CSR money is deposited for later use.
- Net Worth Threshold: A minimum asset value of ₹500 crore that determines CSR eligibility.
- Turnover Threshold: A minimum annual sales figure of ₹1,000 crore for CSR compliance.