Bhopal (Madhya Pradesh): The private and government companies have spent only 1.44% of their CSR funds in Madhya Pradesh in last six financial years. And a major part of this fund was spent in relatively developed districts like Bhopal, Indore and Khandwa with tribals areas getting a very small share. Out of Rs 51666 crore spent as CSR fund, Madhya Pradesh received 1.14% of the spending in last six financial years. This includes Rs 744 crore spent in last three financial years. This has been revealed in a policy brief titled, Corporate Social Responsibility: Re-thinking Strategy for Equitable Growth, issued by Madhya Pradesh State Policy Commission recently. Under Companies Act, 2013, it is mandatory for companies with a turnover higher than a stipulated amount to spend 2% of their average net profit of last three years on CSR.
The CSR funds can be spent on eradicating hunger, poverty, malnutrition, promoting gender equality, protecting heritage, art, culture etc. The Act, however, does not specify the geographical areas where the CSR funds can be spent. The companies are free to choose the state or district for spending their funds. This has resulted in unbalanced sharing of CSR funds. Of the total CSR spending from 2014-15 to 2020-21, 14.6% went to Maharashtra, followed by Karnataka (5.6%) and Gujarat (4.9%). Madhya Pradesh accounted for just 1.14% of spending. In the last three years, the state has received only Rs 744 crore under CSR. The distribution of CSR spending is inequitable within the state too with eight districts accounting for 40.4% of the spending. From 2017-18 to 2020-21, Rs 132 crore (17.6%) was spent in Singrauli, followed by Rs 44.6 crore (5.93%) in Bhopal and Rs 37.9 crore (5.06%) in Indore. On the other hand, Chhatarpur received just 0.02% of the funds and only 0.18% and 0.15% came in the share of Alirajpur and Dindori districts respectively.
How to spend State Policy Commission has recommended measures to make CSR spending effective and equitable includes:
* Constitution of CSR Advisory Board under chief minister
* Laying down guidelines on spendings
* Developing monitoring mechanisms for better utilisation of funds
* Involving civil society organisations in planning CSR investments
* Channelising funds through public-private partnerships
