The Ministry of Corporate Affairs (MCA) on Wednesday elaborated on eligible Covid-related expenditure which would qualify as eligible corporate social responsibility (CSR). These include creating health infrastructure for Covid care, establishment of medical oxygen generation and storage plants, manufacturing and supply of oxygen concentrators, ventilators, cylinders and other medical equipment for countering Covid-19.
Companies allowed to invest CSR funds into Schedule VII of the Companies Act would be able to contribute to specified research and development projects as well as public funded universities and certain organisations engaged in conducting research in science, technology, engineering, and medicine. Schedule VII includes funds such as the Prime Minister Relief Fund, Swachh Bharat Kosh, among others.
MCA said in a circular, “The companies including government companies may undertake the activities or projects or programmes using CSR funds, directly by themselves or in collaboration as shared responsibility with other companies, subject to fulfilment of Companies (CSR Policy) Rules, 2014.”
The government had recently clarified that spending of corporate social responsibility funds for setting up makeshift hospitals and temporary Covid care facilities was an eligible CSR activity.
Contribution to the PM Cares Fund, announced by the government in March 2020 to deal with the Covid-19 pandemic and any other such emergencies that might arise in future, was also declared as an eligible activity under Corporate Social Responsibility of companies.
Corporate Affairs Secretary Rajesh Verma in an appeal to industry also asked them to consider converting office buildings which were vacant due to ‘work from home’ policy into Covid care centres with isolation or oxygen beds to cater to the rapidly increasing caseload in different parts of the country.
“As you are leaders of highly successful companies, I would like to appeal to you to come forward and supplement the government’s efforts in fulfilling the rising hospitalisation needs,” Verma said.
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First Published: Thu, May 06 2021. 01:45 IST
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