Spending of corporate social responsibility funds
Spending of CSR funds for COVID-19 is an eligible CSR activity
The Ministry of Corporate Affairs (“MCA”) issued a clarification on spending on
Corporate Social Responsibility (“CSR”) funds on May 05, 2021. While it was
previously clarified by the MCA that spending of CSR funds for COVID-19 is an eligible
CSR activity, the clarification expanded the scope of CSR activity.
It includes:
- Creation of healthcare for COVID care;
- Establishment of medical oxygen generation and storage plants;
- Manufacture and supply of oxygen concentrators, ventilators, cylinders and
other medical equipment; - Contribution to specified research and development projects;
- Contribution to public funded universities and organizations engaged in
conducting research in science, technology, engineering, and medicine are
also included within the purview of the eligible CSR activities.
In lieu of this clarification, 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.
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