Centre does not direct companies on CSR spending areas, says Harsh Malhotra
HYDERABAD: The Union government does not issue directions to companies on where to spend their Corporate Social Responsibility (CSR) funds, Minister of State for Corporate Affairs Harsh Malhotra told the Lok Sabha on March 16, 2026.
Responding to an unstarred question by Arvind Dharmapuri, the minister said CSR spending decisions are taken by company boards under the Companies Act framework.
CSR spending crosses ₹1,000 crore in FY 2023-24
Government data showed CSR expenditure in Telangana rose steadily over the last five financial years.
Companies spent ₹445.80 crore in 2019-20, ₹627.71 crore in 2020-21 and ₹688.58 crore in 2021-22. Spending increased further to ₹1,040.61 crore in 2022-23 and ₹1,054.92 crore in 2023-24.
Hyderabad received the largest share of CSR funds each year. The district accounted for ₹679.78 crore in 2023-24 alone, up from ₹125.46 crore in 2019-20.
Ranga Reddy district also saw significant allocations, rising from ₹23.97 crore in 2019-20 to ₹119.23 crore in 2023-24.
Other districts with notable CSR spending include Medak, Mahabubnagar, Nalgonda, Karimnagar and Khammam.
Impact assessment mandated for large CSR projects
On monitoring of CSR projects, Malhotra said the ministry does not maintain centralised data on completion status.
However, Rule 8 of the Companies (CSR Policy) Rules, 2014 requires companies with an average CSR obligation of ₹10 crore or more in the previous three financial years to conduct impact assessments.
Such assessments must be carried out through an independent agency for CSR projects worth ₹1 crore or more and completed at least one year earlier.
Details of CSR activities and impact studies must be disclosed in the company’s annual CSR report, which forms part of its Board Report.
No government directive on CSR priorities
Malhotra said CSR is a board-driven process. Company boards plan, approve and monitor CSR activities based on recommendations of their CSR committees.
“Under the CSR framework, companies need to balance local area preferences with national priorities. The government does not issue any directions to the companies to spend in a particular area or activity,” he told the House.
District-wise and sector-wise CSR spending details for Telangana for the financial years 2019-20 to 2023-24 were placed in the Lok Sabha as annexures to the reply.
