Telangana Government demands CSR funds from corporates

Telangana State Government pressures corporates for CSR funds, sparking debate on government control over corporate social responsibility spending.

Cash-strapped and fund-starved, successive Governments of Telangana State have been eyeing the coffers of the corporate sector, albeit in vain, for fulfilment of their basic responsibilities towards people.

The provision for Corporate Social Responsibility (CSR) under the Companies Act, 2013 has manifested as the proverbial goose that lays golden eggs for the rulers, who have been pressuring corporates to part with funds.

Meetings are convened by district collectors and top bureaucrats and companies are being called upon to align their CSR activities with the Government projects, industry sources informed.

It has been learnt that, very recently, a meeting was held with pharma company executives, which was addressed by a high level functionary from the Health department. Representatives of about 20 top pharma companies attended the meeting.

“In the meeting, we were told that our CSR money was Government’s money, and that we would be assigned Government hospitals the maintenance of which we must fund,” a delegate who attended the meeting told, under the condition of anonymity.

They were also told that the next meeting would be held with the chairpersons/managing directors of the respective companies.

“We are already supporting Government hospitals and schools with equipment donations under CSR initiative, and tried to explain the same. But we were told in unambiguous terms that the Government would determine how the funds are spent,” another source revealed.