Out of the ₹1.25 lakh crore which companies have spent as part of their mandatory corporate social responsibility (CSR) over the last seven years, only ₹8 crore — about 0.006% — has been spent in Nagaland, according to government data presented in the Rajya Sabha on Tuesday.
In response to a question on CSR spending, Minister of State for Corporate Affairs Rao Inderjit Singh also said that 4-5% of the last seven years’ CSR funds have been donated to the PM CARES Fund, which has only been in operation for the last two years. He added that CSR money was not allowed to be donated to the Chief Minister’s Relief Funds, as that would mean that “the funds from these companies will only go as per the direction given by the Chief Minister”.
Responding to Bharatiya Janata Party (BJP) MP Geeta’s query regarding the use of CSR funds to develop the socially, economically and educationally backward areas of the country, Mr. Singh said that the broad principle of the law on CSR funds was that the money should be spent in the local area where a company operates, although this was not mandatory. In a supplementary question, Congress MP L. Hanumanthaiah said the government should make it mandatory for companies to spend their CSR funds in backward districts.
