CSR in India – Spotlight on Tamil Nadu and Punjab

CSR in India – Spotlight on Tamil Nadu and Punjab

Published on :- October 22nd, 2021

In 2014, India became the first country in the world to mandate CSR spend through legislative action. The legal mandate on CSR applies to companies that have:
  • Net worth of INR 500 Crore or more, OR
  • Annual turnover of INR 1000 Crore or more, OR
  • Net profit of INR 5 Crore or more.
Companies thus coming under the CSR mandate, have to spend at least 2% of their average net profits of the preceding three years on social impact programmes in every financial year.

In the first six years of implementation of this law, over INR 92605 crore has been cumulatively spent by nearly 30000 companies that come under the CSR ambit.

While the numbers have gone up, the spending patterns seem to be extraordinarily sticky.

Here is a summary of top trends:

The pattern remains similar when we dig deeper. Regions with better corporate presence receive a greater share of the CSR pie.

Since most companies tend to engage in CSR activities in and around their area of operations, trends in CSR investments differ across industries and regions. We recently conducted two state-focused CSR summits – one in Tamil Nadu and another in Punjab. It was interesting to observe state-specific trends from these 2 states – one deep South and one up North. Here are some snapshots from the report:

In both these states, CSR spend has gone up significantly between 2018-20. An interesting observation here is that direct implementation by companies (INR 1850 Crore) in Tamil Nadu is only slightly more than CSR projects via implementing agencies (INR 1512 Crore).

However in Punjab direct implementation by companies (INR 369 Crore) is significantly higher than CSR via implementing agencies (INR 163 Crore).

However what is common across states is the heavy concentration of CSR spend in certain districts - typically the industrial hubs in the state.

To access detailed Tamil Nadu CSR Report - Click here

To access detailed Punjab CSR Report - Click here

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