Unspent CSR Funds Rise 12% to ₹1,920 Crore; Govt Launches Youth Internship Scheme

The unspent Corporate Social Responsibility (CSR) corpus held by companies listed in the BSE-200 index has grown by 12 percent, reaching ₹1,920 crore in the past fiscal year, up from ₹1,708 crore in FY24. This increase occurs even as the government actively promotes the utilization of these funds. The total CSR contribution from BSE-200 companies saw a significant rise of 30 percent, amounting to ₹18,963 crore compared to ₹14,627 crore in the previous year, according to the Edelgive Hurun India Philanthropy List 2025.

In a bid to boost youth employment and CSR fund utilization, the Union Finance Minister Nirmala Sitharaman announced a new scheme in Budget 2024. This initiative allows companies to allocate up to 10 percent of their CSR funds towards internship costs. The scheme aims to provide opportunities for one crore young individuals across the top 500 companies over the next five years. Interns participating in this program will receive a monthly allowance of ₹5,000 and a one-time assistance of ₹6,000. Large companies are mandated to set aside two percent of their average net profit over the last three years for CSR activities, as per CSR policy regulations.

Impact: This news signals a shift in corporate social responsibility focus. While the unspent CSR corpus has increased, indicating potential underutilization of funds for social causes, the government's new internship scheme aims to channel these funds towards youth employment. Companies may need to adapt their CSR strategies to comply with these directives, potentially impacting their budget allocation and engagement with social programs. The overall increase in CSR contributions from large companies suggests a growing commitment to philanthropy, which could be viewed positively by investors and stakeholders concerned with Environmental, Social, and Governance (ESG) factors. Rating: 6/10.

Difficult terms: CSR (Corporate Social Responsibility): A business model that helps a company be socially accountable to itself, its stakeholders, and the public. By practicing corporate social responsibility, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental. BSE-200: An index compiled by the Bombay Stock Exchange (BSE) that represents the top 200 companies listed on the exchange by market capitalization. FY24 (Fiscal Year 2024): The financial year that ended on March 31, 2024, in India. Budget 2024: The annual financial statement presented by the government outlining its income and expenditure for the upcoming fiscal year. Philanthropists: Individuals who donate generously to causes and charitable organizations.