The Government of India on January 22, 2021 amended various rules pertaining to the corporate social responsibility (CSR) regime. The amendments have following features:
- The Government has allowed corporates to undertake multi-year projects.
- Companies have been allowed to set the excess amount spent under CSR up to three succeeding financial years.
- Non-compliance with CSR provisions has been decriminalised by shifting such offences to penalty regime.
- Every company having average CSR obligation of Rs 10 crore or more in the three preceding financial years, will have to undertake an impact assessment study of its projects, through an independent agency.
- The board has to ensure that the administrative overheads of CSR activity do not exceed five percent of total CSR expenditure of the company for the financial year.
- The company’s board has to mandatorily disclose the composition of the CSR Committee, and CSR policy and projects on their website for public access.
- Companies with CSR liability of less than Rs 50 lakh will not have to form a CSR committee
According to the Ministry of corporate affairs (MCA), CSR expenditure has increased from Rs 10,066 crore in FY 2014-15 to Rs 18,655 crore in 2018-19 with a cumulative total of Rs 79,000 crore having been spent throughout India.
