Spending of CSR funds for COVID care is an eligible CSR activity: MCA

For devising more prolific approaches in dealing with the nagging pandemic circumstances predominating in the country, the Ministry of Corporate Affairs (MCA) has appeared with a circular on 5th May 2021 stating that:

  • Spending of 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 are eligible CSR activities under item nos. (i) and (xii) of Schedule VII of the Companies Act, 2013 relating to the promotion of health care, including preventive health care, and, disaster management respectively.
  • Contribution to specified research and development projects as well as contributions to public-funded universities and certain Organisations engaged in researching science, technology, engineering, and medicine as eligible CSR activities.
  • The companies including Government companies may undertake the activities or projects or programs using CSR funds, directly by themselves or in collaboration as a shared responsibility with other companies, subject to fulfillment of Companies (CSR Policy) Rules, 2014 and the guidelines issued by this Ministry from time to time.

The step taken by MCA is a much-needed step to provide a relentless source to people in need of oxygen, concentrators, ventilators, cylinders, and other medical equipment.

Leave a Reply

Your email address will not be published. Required fields are marked *

Quick Links

TAXCLUE. © 2016-2023. All Rights Reserved.