Yogi govt eyes higher 'corporate funds' with CSR Conclave on September 11

UP accounted for less than 3% of pan-India CSR spend of Rs 47 billion in FY17

To proactively engage with India Inc for greater investment and cultivate a pro-industry image, the Yogi Adityanath will organise a mega CSR Conclave in the state capital on September 11.

This comes close on the heels of Prime Minister Narendra Modi encouraging UP to becoming the country’s first trillion dollar economy. Top national and international companies are expected to participate in the state’s first CSR event.

Since UP accounted for less than 3 per cent of the pan-India CSR funding during 2016-17, the state had been working on an action plan to institutionalise this growing finances route for public utility projects. Chief Minister Adityanath had already asked officials to prepare a list of big corporate houses for seeking CSR funds towards projects in sectors such as tourism, sanitation, urban development, street lighting, beautification, education etc.

Underlining that banks, oil and insurance companies should be prominently included in the list, he had underlined that even district level projects could be executed with CSR funding by coordinating with companies and their senior officials.

In 2016-17, about 6,250 companies had contributed CSR funds worth over Rs 47 billion, of which UP received just Rs 1.20 billion or roughly 2.55% from about 351 firms, even though the state figures among India’s top three state economies. Industrialised states like Gujarat, Andhra Pradesh, Odisha and Maharashtra have taken lead in utilising the CSR funding route to the optimum.

At the Conclave, the CM will also launch a dedicated CSR portal, which would list all such projects that the government puts up for corporate funding and their incremental progress.

CSR Conclave is part of the larger roadmap of the Adityanath government to attract investment. Over the past 6-7 months, the state has organised UP Investors Summit, One District One Product Summit, laid the foundation of Purvanchal Expressway apart from industrial and infrastructure projects totalling Rs 600 billion. Besides, two big-ticket events viz. Krishi Kumbh and UP Startup Conclave are lined up in the coming weeks.

Earlier, union commerce and industry minister Suresh Prabhu had observed CSR could become a viable framework and act as a bridge between society and corporate houses. Under the Companies Act 2013, large corporate entities are mandated to spend 2 per cent of their 3-year annual average profit towards CSR activities. India is touted to be the only country with such legal CSR framework.

UP plans to utilise CSR funds for the proposed 108-metre tall Lord Ram statue on the banks of Saryu in Ayodhya. In fact, the government has offered 85 tourism projects totalling Rs 27 billion across 10 major towns to companies desirous of contributing funds out of their mandatory CSR spend. Apart from Lord Ram statue, estimated to cost Rs 5 billion, such funds are being eyed for proposed New Ayodhya township project.