A gradual increase in corporate earnings and profits has led to a 28 per cent rise in Corporate Social Responsibility (CSR) spending by listed entities in FY16.
The unspent amount has, however, come down over the previous year. Against an unspent amount of Rs 2,583 crore in 2014-15, the group of companies spent Rs 1,984 crore less than what was mandated in 2015-16. CSR expenditure by PSUs witnessed a sharp rise in 2015-16. On an overall basis while 48 PSUs spent Rs 2,078 crore in 2014-15, it went up by 41 per cent to Rs 2,936 crore by 47 PSUs in 2015-16.
The Companies Act has prescribed nine different schedules under Schedule VII, under which spends can be made and it includes the PM’s relief fund. Government-owned companies lead from the front when it comes to passive CSR spends as almost 70 per cent of the money transferred to the relief funds has been done by PSUs. While NTPC has transferred Rs 278 crore or 56 per cent of its total CSR spend of Rs 491.8 crore into the relief funds, Power Finance Corporation and NHPC transferred Rs 173 crore and Rs 59.5 crore, respectively.