Hyderabad, March 27 Telangana Chief Minister A Revanth Reddy has expressed dissatisfaction with the limited flow of CSR funds into the state, emphasizing that state-based companies should allocate at least 50% of their social responsibility funds within the state.
He instructed officials to implement measures, such as drafting a new policy, to ensure that companies spend their funds within the state.
During a meeting on Corporate Social Responsibility (CSR) funds, officials informed the chief minister that the state accounts for only 3% of total CSR spending at the national level.
"Expressing dissatisfaction with the limited flow of CSR funds from Telangana's industrial sector into the state, the CM stressed the need for the state to receive a larger share of CSR funds and also ensure their effective utilization," an official release issued on Thursday said.
"Companies in the state should spend 50% of CSR funds here," the release quoted the CM as saying.
Reddy directed officials to introduce a special policy for the effective utilization of CSR funds and to seek more funds from corporate companies and industries.
To encourage companies to contribute more CSR funds, he instructed officials to organize annual events to honor the management and representatives of companies that contribute more CSR funds to the state during the Telangana formation celebrations in June.
The chief minister also decided to establish a dedicated cell in the state to coordinate CSR initiatives currently being implemented by corporate companies within the state, as well as to compile information on projects across various government departments suitable for execution through CSR funding.
The creation of a dedicated 'Telangana CSR Portal' was also approved during the CM's review meeting with officials.
The portal would serve as an important link between the government and corporate entities. It would also feature comprehensive details of various projects—spanning across different government departments—that are open for corporate funding through CSR contributions, the release said.
The chief minister further instructed officials to study the strategies adopted by other states for mobilizing CSR funds.