According to an ET report, around Rs 22,000 crore is expected to gush into the social sector from the next financial year onwards as Indian companies ramp up CSR spends in keeping with provisions under the Companies Act, 2013. The Act stipulates certain companies to spend at least 2 per cent of their average net profits made over three preceding years on CSR programmes. To meet this requirement companies will have to ramp up their CSR interventions.
Over 16,000 companies — ranging from large ones like Reliance Industries (CSR spend of Rs 285 crore in 2012-13, or 1.36% of its net profit) to small ones like financial services firm JM Financial (Rs 2.16 crore, or 1.21%) — will have to ramp up, re-organise and tweak their CSR approaches, the report said. ETIG data shows that three-fifths of the top 100 CSR spenders in India Inc in 2012-13 spent less than 2% of their net profit for that year, it added.
Read the complete report here