HYDERABAD: The Telangana government is preparing a new policy to regulate the use of Corporate Social Responsibility (CSR) funds and strengthen industrial participation in development.
The government plans to set up an autonomous body named "Telangana CSR" to streamline fund utilisation, which has so far operated without structured accounting.
Currently, companies in the state spend around ₹700-₹800 crore annually on CSR. The government considers this low given the state's industrial capacity and has set a target to increase it to ₹2,500 crore.
Officials are drafting a comprehensive policy to achieve this goal by involving major companies from the information technology, pharmaceutical and manufacturing sectors.
Raising national share through structured spending
Telangana currently accounts for only 3% of CSR spending at the national level. The government aims to raise this share to at least 10%.
It plans to ensure that companies align CSR spending with government priorities instead of undertaking isolated projects. Officials believe this approach can improve outcomes in key sectors such as education, healthcare and environmental protection.
The proposed autonomous body is expected to improve transparency in fund mobilisation and ensure clear monitoring of spending at the field level.
Study of other states' models under way
The government is studying CSR policies in Gujarat, Maharashtra, Odisha and Haryana, where dedicated frameworks and independent institutions are already in place.
Officials are examining how companies in these states integrate with government projects and maintain transparency. Based on these findings, a roadmap suited to Telangana will be prepared.
The policy will also address challenges faced by companies in implementing CSR initiatives.
Focus on wider regional distribution of funds
Officials said CSR funds are currently concentrated in and around Hyderabad and a few industrial districts.
By coordinating companies across the state and focusing on backward districts, the government expects to scale up CSR contributions to ₹2,500 crore.
A high-level meeting with industrialists is expected soon to incorporate their suggestions into the policy. The proposal is likely to be finalised and announced shortly.
Experts said an autonomous structure would speed up decision-making and provide companies with confidence in fund utilisation. Higher CSR mobilisation could also ease pressure on the state budget.
CSR Spending (₹ crore)
- 2019-20: 610
- 2020-21: 730
- 2021-22: 780
- 2022-23: 840
- 2023-24: 900