Parliament Question: CSR Resources towards Research and Innovation

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA STARRED QUESTION NO. 201 ANSWERED ON MONDAY, AUGUST 3, 2026/SHRAVANA 12, 1948 (SAKA) CSR RESOURCES TOWARDS RESEARCH AND INNOVATION QUESTION *201. SHRI VE VAITHILINGAM: Will the Minister of CORPORATE AFFAIRS be pleased to state: (a) whether the Government has explored the potential of Corporate Social Responsibility (CSR) resources to support innovation, social enterprises and mission-driven organizations capable of delivering scalable social impact across the country; (b) if so, the framework developed by the Government to encourage deployment of CSR resources towards research, innovation, technology development and social entrepreneurship initiatives and if not, the reasons therefor; (c) the contribution of CSR-supported innovation and social enterprises towards addressing developmental challenges, generating employment and improving delivery of public services; (d) the progress achieved in facilitating partnerships among corporate entities, research institutions, incubators and social enterprises for promoting innovation- led development; and (e) the initiatives taken/proposed to be taken by the Government to expand the role of CSR in financing innovation, strengthening social entrepreneurship and supporting growth of high-impact organizations capable of achieving sustainable and scalable outcomes? ANSWER THE MINISTER OF FINANCE AND CORPORATE AFFAIRS (SHRIMATI NIRMALA SITHARAMAN) (a) to (e): A Statement is laid on the Table of the House. *******STATEMENT REFERRED TO IN REPLY TO PART (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 201 (1st POSITION) FOR 3rd AUGUST 2026 ASKED BY SHRI VE VAITHILINGAM, HON’BLE MEMBER OF PARLIAMENT REGARDING CSR RESOURCES TOWARDS RESEARCH AND INNOVATION. (a) to (c): Yes Sir. The legal framework for Corporate Social Responsibility (CSR) has been provided under Section 135 of the Companies Act, 2013 (‘Act’), Schedule VII of the Act and Companies (CSR Policy) Rules, 2014. Schedule VII of the Act indicates the list of eligible activities which can be undertaken by the companies under CSR. These activities are broad-based and may be interpreted liberally so as to capture the essence of the subjects enumerated therein. The activities mentioned under Schedule VII are broadly aligned with national priorities to promote inclusive and sustainable development and include measures to support multiple social sectors viz. education, environmental sustainability, gender equality, healthcare, livelihood enhancement projects, skill development, eradication of hunger, safe drinking water, sanitation, socio- economic equalities including slum area development, rural development projects and for reducing inequalities faced by socially & economically backward groups etc. Further, under Schedule VII, companies may undertake CSR activities by contributing to four funds namely Clean Ganga fund, Prime Minister’s National Relief Fund (PMNRF), Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PMCARES) and Swachh Bharat Kosh, thus delivering scalable social impact across the country. The activities thus mentioned in Schedule VII Further, item (ix) of the Schedule VII also provides for contribution to incubators or research and development projects in the field of science, technology, engineering and medicine. On the basis of annual filings made by companies in the MCA21 registry, Development sector-wise CSR expenditure in India for the last five financial years i.e. FY 2021-22 to FY 2024-25 is attached at Annexure. (d): Under Section 135 of the Companies Act, 2013 read with Rule 4(1) of the Companies (CSR Policy) Rules, 2014, it is prescribed that the Board of the company is empowered to undertake its CSR activities either by itself or through- i. a company established under section 8 of the Act, or a registered public trust or a registered society, exempted under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10 or registered under section 12A and approved under 80 G of the Income Tax Act, 1961 (43 of 1961), established by the company, either singly or along with any other company; orii. a company established under section 8 of the Act or a registered trust or a registered society, established by the Central Government or State Government; or iii. any entity established under an Act of Parliament or a State legislature; or iv. a company established under section 8 of the Act, or a registered public trust or a registered society, exempted under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10 or registered under section 12A and approved under 80 G of the Income Tax Act, 1961, and having an established track record of at least three years in undertaking similar activities. The above legal framework facilitates partnerships between the companies and suitable implementing agencies. (e): The Ministry has recently vide notification dated 27.05.2026 widened the ambit of Schedule VII by introduction of new item no. (xiii) namely “Subscription to zero coupon zero principal instruments on Social Stock Exchange." This amendment will help Not for Profit Organisations to raise funding for public welfare projects in a transparent and regulated manner. ******Annexure Refer to part (a) to (c) of Lok Sabha Starred Question no. 201 for 03.08.2026 Development Sector-wise CSR expenditure inIndia from FY 2022-23 to FY 2024-25 (Amount in Rupees Crore) FY FY FY S.No. Development Sector 2022-23 2023-24 2024-25 1. Agro forestry 67.28 75.18 87.59 2. Animal welfare 326.40 548.60 560.78 Armed Forces, Veterans, War Widows/ 3. 63.63 70.96 72.40 Dependants 4. Art And Culture 451.34 712.58 692.22 5. Clean Ganga Fund 46.28 66.89 19.35 6. Conservation of natural resources 584.65 438.65 426.28 7. Education 10,520.18 12,508.19 13,877.34 8. Environmental Sustainability 2,027.10 2,483.27 3,396.75 9. Gender Equality 121.17 217.85 223.98 10. Health Care 7,122.71 7,344.74 8,530.60 11. Livelihood Enhancement Projects 1,710.13 2,408.67 2,547.71 12. Other Central Government Funds 187.79 216.44 262.66 13. Poverty, Eradicating Hunger, Malnutrition 1,285.67 1,273.87 1,647.24 14. Prime Minister's National Relief Fund 857.06 644.10 468.50 15. Rural development projects 2,060.71 2,458.57 2,476.96 16. Safe drinking water 253.05 342.51 341.85 17. Sanitation 438.95 379.16 439.32 18. Senior citizens welfare 154.53 164.95 205.40 19. Setting up homes and hostels for women 49.84 43.56 50.23 20. Setting up orphanage 45.52 34.09 55.03 21. Slum area development 94.22 39.52 38.42 22. Socio-economic equalities 159.54 205.65 160.43 23. Special education 325.77 412.36 423.38 24. Swachh Bharat Kosh 56.87 143.95 192.97 25. Technology incubators 1.48 1.91 - 26. Training To Promote Sports 542.69 718.82 1,130.02 27. Vocational skills 1,209.62 1,429.73 1,945.22 28. Women Empowerment 417.45 464.89 521.38 29. NEC/Not Mentioned* 1.65 68.32 - Total 31,183.28 35,917.98 40,794.00 (Updated Data upto 31.03.2026) (Source: Corporate Data Management Cell) *Companies either did not specify the names of Sectors or indicated more than one Sector where projects were undertaken. *****