The Ministry of Corporate Affairs (“MCA”) vide its circular no. 09/2021 dated May 05, 2021 (“Circular”) has expanded the Covid related expenditure which would qualify as eligible Corporate Social Responsibility (“CSR”). Now, spending CSR funds for ‘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’; or similar such activities would be considered as CSR.
The Circular further clarified that even government companies may undertake the activities or projects or programmes using CSR funds, directly by themselves or in collaboration as a shared responsibility with other companies, in accordance with the Companies (CSR Policy) Rules, 2014.
Recently, the MCA vide its circular no. 05/2021 dated April 22, 2021, had also clarified that spending of CSR funds for ‘setting up makeshift hospitals and temporary Covid care facilities’ is an eligible CSR activity.
The Government’s decision to include these activities under CSR would help the country’s medical system to deal with the increasing number of COVID-19 cases.