Grandhi Mallikarjuna Rao, founder of Bangalore-based infrastructure firm GMR Group, has set aside Rs 1,540 crore for philanthropy, at a time when two American icons of 'giving' -- Warren Buffet and Bill Gates -- are touring India to encourage a culture of philanthropy among the rich.

"GM Rao has pledged his irrevocable commitment to create an endowment worth $340 million (Rs 1,540 crore) in favour of the GMR Varalakshmi Foundation, for charitable activities to serve the needs of the under-served sections of society," a company statement said.

According to GMR, the endowment is equivalent to Rao's personal share of his businesses.

Business magazine Forbes estimates Rao's net worth to be around $2.6 billion.

In comparison, Gates has a net worth of $56 billion, while Buffett is worth $50 billion -- the second- and third-richest, respectively in the world.

GMR Varalakshmi Foundation is the corporate social responsibility (CSR) arm of the Group and its mandate is to develop social infrastructure and enhance the quality of life in communities in locations where the group companies do business.

In December, Azim Premji, chairman of country's third-largest software exporter Wipro Ltd, transferred 213 million shares, then worth around Rs 8,800crore, to philanthropic trust Azim Premji Trustee Co, which would use the dividend earned on the shares for charitable work.

Nearly six months before that, in June, Shiv Nadar, the founder of HCL Technologies, India's fifth-largest IT services company, donated Rs 580 crore to a foundation that bears his name for focusing on educational initiatives.

GMR's Rao said his action was in keeping with the group's philosophy of keeping nation building before any other consideration.

Source: 23.March.2011, DailyBhaskar.com