CSR spending on environment, women empowerment declined in 2015-16
Under CSR act, companies need to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social activities.
The government data put out in Parliament shows decline in funding related to environment, women empowerment and slum development. The total spend on these accounted for only 11 per cent of the total CSR expenditure in 2015-16, as compared to almost 19 per cent in 2014-15.
For instance, expenditure on category related to slum area development in 2015-16 was just Rs 9 crore, a far cry from Rs 123 crore spent last year.
Initiatives related to encouraging sports, art and culture and contributions to the Clean Ganga fund seem to also seem to have lost sheen.
CSR in India is governed by Section 135 of the Companies Act, 2013 and CSR expenditure of companies is compiled development sector-wise as per the various activities listed in Schedule VII of the Act.
Companies need to spend at least 2 per cent of its average net profit for the immediately preceding three financial years on corporate social responsibility activities.