Source: ‘Dynamic CSR Report’ https://www.csr.gov.in/
• Receiving just 0.01% of CSR funding in 2020-21, State Govt hopes to increase it by over 4381%
• Since FY 2014-15 to 2020-21, only 6 districts under CSR
Moa Jamir
Dimapur | August 21
In the Financial Year (FY) 2020-21, the expenditure of companies under their Corporate Social Responsibility (CSR) activities in Nagaland was just 0.01% of the total spending across India. However, Nagaland Government is hoping to increase Indian Inc’s spending in the State exponentially in the coming years with a conclave.
As Nagaland gears up for the rescheduled Nagaland CSR and Investment Conclave 2022 with high expectations and full-proof preparation and hosts the Union Finance Minister Nirmala Sitharaman from August 22-25, The Morung Express present an overview of the status of CSR spending in Nagaland.
To be held under the theme, ‘Partnerships for Strengthening Sustainable Development,’ the conclave, originally slated for July was postponed to August after Sitharaman rescheduled her visit.
Addressing a press conference on August 18, the Chief Executive Officer of Investment and Development Authority of Nagaland (IDAN), Alemtemshi Jamir claimed that more than 100 corporates and investors from various parts of the country have confirmed their participation in the conclave and are expected to extend CSR funding up to Rs 160 crore in Nagaland.
It implies an increase of over 4381% of what the State is currently receiving. Looking at the CSR spending in Nagaland over the years, however, the expectation seems to be highly improbable, and it would be considered an ‘exceptional achievement' if the conclave manages to achieve even half the target.
Negligible CSR activities
As noted earlier, the State received just 0.01% of the total expenditure incurred by companies under their CSR activities across India in 2020-21.
In absolute terms, out of Rs 24,865.46 crore in CSR expenditure across India, the Nagaland-specific expenditure was just Rs 3.57 crore as of March 31, 2022, according to data provided by the Union Minister of State in the Ministry of Corporate Affairs (MCA), Rao Inderjit Singh in the Lok Sabha on August 1.
Was the low amount due to the impact of the COVID-19 pandemic? This is not the case as overall the CSR expenditure in India declined by just around 0.10% from Rs 24,891.63 crore in 2019-20 to Rs 24,865.46 crore.
Further, the analysis of CSR spending in Nagaland highlighted that the State has been receiving a minuscule share of the total expenditure over the years and the amount for FY 2020-21 was second best since FY 2014-15. The highest was in FY 2019-20 when the State received Rs 5.10 crore. (See Graph)
Accordingly, the total amount of CSR spending in Nagaland was just Rs 15.21 crore during the last 7 FYs from 2014-15 to 2020-21, as per the ‘Dynamic CSR Report’ available on the National CSR Data Portal. The portal is an MCA’s initiative to ‘disseminate CSR-related data and information filed by the companies registered with it.’
It must be noted here that the North-East as a whole has not been an ideal location for CSR activities. In 2020-21, apart from Assam, which received Rs 163.21 crore, it ranged from as low as Rs 0.81 crore in Mizoram to Rs 12.46 crore in Meghalaya.
Most CSR initiatives, however, are primarily concentrated in the periphery or direct impact areas in which a company is located or operates and lack of industries and plants– home-grown or otherwise, and geopolitical factors, could contribute to low spending.
Coverage only in 5 districts
Meanwhile, according to the ‘Dynamic CSR Report’ for Nagaland, during the last 7 years up to 2020-21, the CSR activities were specifically restricted to 6 districts of Nagaland – Dimapur, Kohima, Mon, Phek, Mokokchung and Tuensang.
Out of this, only Dimapur received CSR spending consistently in all the 7 years, followed by 5 times in Mon and 4 in Kohima, and 2 in Phek. Mokokchung and Tuensang received once each during the same period. Specifically, there was no CSR spending in Aspirational district Kiphire.
However, in all years, CSR spending in Nagaland without a specific district or designated “Nec/ Not Mentioned” was among the highest. In 2020-21, CSR expenditure in Nagaland without a specific district was Rs 2.54 crore out of the total Rs 2.56 crore as per the CSR portal.
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.”
The CSR framework is disclosure-based and companies are required to file details of CSR activities annually in the MCA registry.
Out of various activities in the development sector that can be included by companies under their CSR, in Nagaland, they were mainly concentrated in areas like education, differently abled, livelihood, health, poverty and malnutrition, safe drinking water, sanitation, rural development, encouraging sports, environment, animal welfare, conservation of resources, gender equality, women empowerment, old age homes, reducing inequalities and so on.
