According to the new Companies Act passed by the Parliament on April 1, 2014, CSR will become mandatory for companies with profit of
र5cr and above. All companies having turnover of र1,000 crore or more — or a net worth of र500 crore and more or net profit of र5cr and more — will have to spend at least 2% of their three-year average profit every year on CSR activity.
The Indian Institute of Corporate Affairs estimates that 16,000 Indian companies falling under the ambit of the CSR law may invest around
र28,000 crore in different areas including sanitation and cleanliness activities.
Areas that have been defined by the government in the CSR policy include eradicating hunger, poverty and malnutrition; promoting preventive healthcare and sanitation; and the Prime Minister Relief’s Fund, among others.