Why Does Bihar Receive So Little CSR, and How Can That Change?

Bihar is India's third most populous state, yet in FY 2023-24 it received only about 1% of India's state-attributed CSR. Neighbouring Jharkhand, with roughly a third of Bihar's population, received more in absolute terms (₹414.63 crore against ₹260.53 crore). Why?

1. CSR follows corporate geography

Section 135 asks companies to give preference to the local areas around which they operate. States with many headquarters, factories and mines, such as Maharashtra, Gujarat, Karnataka and Odisha, attract the most CSR. Bihar has relatively few large industrial bases, so fewer companies have a natural local mandate there.

2. Few investment-ready projects

CSR teams need projects that are costed, approved and ready to start, with credible implementing partners. Without a pipeline of such projects, even willing companies find it hard to commit.

3. Perceived execution risk

Companies far from Bihar may worry about monitoring, partner capacity or reporting. In practice these risks can be managed with the right partners and systems, but the perception keeps money away.

4. Much CSR is "PAN India"

In FY 2023-24, about ₹7,962 crore of national CSR was recorded as "PAN India" or not tied to any state. Some of it may reach Bihar, but there is no visibility on how much.

What could change it

1. A state CSR facilitation cell, a single window that connects companies with projects the government has endorsed.
2. A public CSR project bank of costed, district-wise projects.
3. Targeted outreach to PSUs with Bihar operations and to India's largest CSR spenders.
4. Pooled funds that let several companies co-invest in larger programmes.
5. Transparent data published every year, so that progress can be tracked.

The opportunity is real. Each rupee of CSR goes further in a state where so little currently arrives. Orvys is working to build exactly these systems. See our proposal for governments.