Ahmedabad: With the corporate world join the state and central government to combat the Covid-19 pandemic, the health sector becomes a top priority and won the largest share of corporate social responsibility spending (CSR) issued by the company in Gujarat.
Gujarat saw the estimate of the RS 582 Crore spent by public-public and private sectors – for CSR activities at 2020-21.
Of this amount, RS 318 Crore or 55% towards the health care sector, shows data available on the National CSR data portal, an initiative from the Ministry of Corporate Affairs Union.
In the percentage of provisions, this is the highest part received by this sector since 2014-15, when it is mandatory for the company to spend 2% of an average net profit of 3 years for the CSR project.
The health sector contributed 33% and 23% of total Gujarat CSR expenditure respectively in 2019-20 and 2018-19.
“The company changed their CSR priority after Covid-19 pandemic.
Because the pandemic starts at the peak of the new financial year, some companies make provisions and create special projects in response to Pandemics,” said Bhomik Shah, Founder and CEO, CSRB based on Ahmedabad, Advisory company Ahmedabad based.
“Funding that will go to education, water projects or other initiatives are channeled to fight a pandemic,” Shah said, adding that health care trends that have a higher part of CSR expenditure are expected to continue some in 2021-22.
Because the company has prioritized health care in the first half of the fiscal right now.
After the pandemic, the central government added expenses arising to fight against Covid-19 with a list of CSR activities that qualified.
The company wholeheartedly contributes to the Prime Minister’s assistance funds and the Chief of State Minister.
Corporate companies take several initiatives such as mask distribution, PPE kits, hand saniters and oxygen cylinders, installing oxygen mills and creating covid care facilities.
The amount of funds spent on CSR throughout Gujarat in 2020-21 is expected to increase further because the estimation is currently based on data reported by 280 companies.
Estimates will be updated when more companies send their numbers.
More than 1,200 companies spend money every year for CSR in the state, say people operate in the CSR room.
Ministry data shows that Maruti Suzuki India Ltd., Cadila Healthcare Limited and Torrent Power Limited spent the maximum amount of the overall CSR activities in the state during fiscal 2021.