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Karnataka

Steep dip in CSR allocation for Bengaluru

The figures show a significant rise in spending across key sectors, though disparities between districts remain wide.

Vincent D’ Souza

MANGALURU: Karnataka received a total of Rs 8,900 crore in Corporate Social Responsibility (CSR) funds over the past five years, of which Rs 2,542 crore, nearly 29%, was concentrated in just five districts: Bengaluru Urban, Bengaluru Rural, Ballari, Mysuru, and Dakshina Kannada.

However, Bengaluru Urban has seen a steep drop in CSR spending. After peaking at an astonishing Rs 1,074.13 crore in FY 2021-22, contributions to the city plummeted to a mere Rs 2.98 crore in FY 2023-24. The state’s CSR contributions have grown steadily since FY 2019-20, when the total spending stood at Rs 1,448.16 crore and reached a new high of Rs 2,254.88 crore in FY 2023-24, according to data shared by the Ministry of Corporate Affairs in Lok Sabha in response to a question by Dakshina Kannada MP Capt Brijesh Chowta.

The figures show a significant rise in spending across key sectors, though disparities between districts remain wide. Education continues to be the biggest beneficiary, attracting Rs 974.07 crore in FY24 - -more than 40% of the total CSR outlay in the state. Other major sectors included environmental sustainability (Rs 358.22 crore), healthcare (Rs 319.59 crore), and training to promote sports (Rs 64.71 crore).

As per district-wise data, Bengaluru Rural emerged as one of the top gainers, receiving Rs 149.70 crore in FY24--a massive jump from Rs 17.15 crore in FY 2019-20. Mysuru also recorded a dramatic increase, rising from Rs 27.18 crore in FY20 to Rs 155.96 crore in FY24, making it the highest-funded district that year.

Kolar followed with Rs 51.99 crore, up significantly from Rs 17.54 crore five years ago. Dakshina Kannada received a total of Rs 50.64 crore in CSR funds during FY 2023-24-up from Rs 39.17 crore in the previous year. Over the five-year period, the district garnered Rs 250.46 crore in total.

Districts like Chikkaballapura and Bengaluru South experienced sharp declines, with the former receiving just Rs 0.13 crore and the latter Rs 0.23 crore in the latest fiscal year. Other low-funded districts included Vijayapura (Rs 3.21 crore), Mandya (Rs 5.59 crore) and Gadag (Rs 4.15 crore).

Yadgir received no funds in FY 2023-24. A large portion of CSR funds, Rs 1,458.70 crore in FY24, were tagged under ‘district not classified’, indicating projects that span multiple regions or lack specific geographic attribution. During the period of last five years, one company, Mukka Proteins Limited registered in Dakshina Kannada district, failed to meet CSR obligation and Rs.2,57,000 was imposed as penalty, in 2023.

The government clarified that CSR is a board-led initiative, with companies free to decide how and where to allocate funds based on their CSR policies and committee recommendations. While firms are encouraged to consider local priorities, there is no mandate to distribute funds evenly across districts.

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