Healthcare sector: healthcare sector’s share in gujarat’s csr spend jumps to 55 pc after covid-19 pandemic- healthcare sector accounts for the largest share of CSR spending by companies in Gujarat.
- The amount spent for CSR in Gujarat is expected to increase further
- Current estimates based on data reported by 280 companies
- Companies change their CSR priorities in view of Kovid-19
The corporate world has also fought and is fighting with the state and central governments to deal with the Kovid-19 pandemic. This made the healthcare sector a top priority and accounted for the largest share of Corporate Social Responsibility (CSR) spending by companies in Gujarat.
An estimated Rs 582 crore was spent by Gujarat’s public and private sector firms for CSR activities in 2020-21. Of this, Rs 318 crore or 55% went to the healthcare sector. This information has come out from the data available on the National CSR Data Portal, an initiative of the Union Ministry of Corporate Affairs.
Healthcare has the highest share ever since 2014-15
In percentage terms, this is the highest share that has gone to the sector since 2014-15. In 2014-15, it was mandatory for companies to spend 2% of their 3-year average net profit on CSR projects. The healthcare sector accounted for 33% and 23% of the total CSR expenditure of Gujarat in 2019-20 and 2018-19 respectively.
According to Bhowmik Shah, Founder and CEO, Ahmedabad-based CSR research and advisory firm CSRBOX, “Companies changed their CSR priorities in the wake of the COVID-19 pandemic. Since the pandemic began at the start of a new fiscal year, many companies have made provisions and created special projects in response to the pandemic.”
2021-22 This trend is expected to continue
Shah said the money which was to be given for education, water projects or any other initiative was directed towards fighting the pandemic. The trend of higher share of CSR spending going to the healthcare sector is expected to partially continue in 2021-22 as companies have prioritized healthcare in the first half of the current financial year as well. After the pandemic, the central government added expenditure to fight against COVID-19 to the list of eligible CSR activities. The companies wholeheartedly contributed to the relief funds of the Prime Minister and the Chief Ministers of the State. Corporate firms took several initiatives such as distribution of masks, PPE kits, hand sanitisers as well as providing oxygen cylinders, setting up oxygen plants and building COVID care facilities.
Also read: During the Corona period, India had to import edible oil worth more than one lakh crore rupees, know what was the reason
Now many more companies will submit their figures
The amount spent for CSR across Gujarat is expected to increase further in 2020-21 as the current estimate is based on data reported by 280 companies. The estimate will be updated as more companies submit their figures. People working in the CSR sector say that every year more than 1,200 companies in the state spend money for CSR. Data from the ministry showed that Maruti Suzuki India Ltd., Cadila Healthcare Ltd. and Torrent Power Ltd. spent the maximum amount for overall CSR activities in the state during the financial year 2021.
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