Nagaland and NE States not an ‘ideal place’ for Indian Inc social activities

March 22, 2021 84 Views No Comment

Nagaland, Mizoram most ‘neglected’ States under CSR activities

Moa Jamir
Dimapur | March 21

With less than 1% of total money spent by companies in India last fiscal year, Nagaland and other North East States are one of the most neglected areas for the Corporate Social Responsibility (CSR) activities, according to an official data.

The figure may be reflective of lack of industries or other geo-political factors, but the amount spent by public and private sector companies in the region was mere Rs 42.2 crore against a total CSR expenditure of Rs 7,822.50 crore spent in financial year (FY) 2019-20 up to September 30, 2020.

It represented just 0.53% of the total spending by companies registered with the Union Ministry of Corporate Affairs (MCA) under the CSR.

The figure decreases to just Rs 14.14 crore (0.18%), if the amount spent in Assam (Rs 26.06 crore) is deducted from the NE total of Rs 42.2 crore in FY 2019-20, as per data provided by the Minister of State For Finance and Corporate Affairs, Anurag Singh Thakur in a reply to an unstarred question in the Rajya Sabha on March 16.

Incidentally, CSR spending in the State of Nagaland and Mizoram were given as ‘nil’ last FY in a table annexed by the Minister in his reply and both States received the lowest corporate spending in the last three fiscals.

Mizoram with just Rs 0.32 crore received the lowest CSR spending in last 3 years, followed by Nagaland at Rs 2.47 and Sikkim at Rs 13.69 crore. (See table)

Meanwhile, indicating the adverse impact of ongoing COVID-19 pandemic in the corporate sector, the CSR spending in India was lowest last FY at Rs 7,822.50 crore, a fall from Rs 18,654.82 crore in FY 2018-19 and Rs 13,889.85 in FY 2017-18.

At Rs 1,313.81 crore, Maharashtra was the most preferred destination for CSR activities, followed by Karnataka at Rs 587.48 crore and Gujarat at Rs 356.15 crore.

CSR spending in Nagaland
According to the National Corporate Social Responsibility Data Portal cited by the Minister in his reply, Nagaland is not a preferred ground for undertaking CSR activities.

The portal is a platform established the MCA to disseminate CSR related data and information filed by the companies registered with it.

As per data given on the portal, CSR spending in Nagaland was Rs 1 crore in FY 2014-15; Rs 0.95 in 2015-16; Rs 0.92 crore in 2016-17; Rs 0.36 in 2017-18; Rs 2.11 crore in 2018-19; and ‘0’ in 2019-20.

Kolkata (Tinsukia)-based Greenply Industries Ltd was the most regular spender between 2014-19 while the North Eastern Development Finance Corporation Limited (NEDFi) and Lakshmi Machine Works Limited other regulars. Kurlon Enterprise Limited also made a substantial payment of Rs148.53 lakh in FY 2018-19 when CSR spending in the State was highest at Rs 2.11 crore.

Some of the main their activities include poverty, eradicating hunger and malnutrition; environmental sustainability; education; and livelihood enhancement projects etc.

What is CSR?
According to the MCA, the concept of CSR in India is governed by Section 135 of the Companies Act, 2013. Section 135 (1) of the Act mandates “every company with a turnover of Rs. 1000 crore or more, or a net worth of Rs. 500 crore or more, or a net profit of Rs. 5 crore or more to spend at least two per cent of their average net profits earned during three immediately preceding financial years on CSR activities listed in Schedule VII of Companies Act, 2013.”

Activities which may be included by companies under their CSR include eradicating hunger, poverty and malnutrition; health care, sanitation and safe drinking water; education, including special education and employment enhancing vocation skills; gender equality; care centres and homes; environmental sustainability, protection of flora and fauna as well as national heritage, art and culture; public libraries; rural sports, nationally recognised sports, paralympic sports and olympic sports; contribution to prime minister’s national relief fund; contribution to incubators or research and development projects; disaster management; and contributions to publicly funded educational institutions and so on.

Source: https://morungexpress.com/nagaland-and-ne-states-not-an-ideal-place-for-indian-inc-social-activities

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