With the number of Covid-19 cases increasing in the country, the Centre has now roped in the private sector to help in the efforts to minimise the spread of Coronavirus.
The Centre on Monday declared contributions by companies towards fighting the Covid-19 pandemic as a Corporate Social Responsibility (CSR) activity.
The Finance Minister Nirmala Sitharaman on Monday confirmed that spending of CSR funds for COVID-19 is eligible CSR activity.
“In view of the spread of novel coronavirus in India, its declaration as pandemic by the WHO, and decision of Government of India to treat this as notified disaster, it is hereby clarified that spending of CSR funds for COVID-19 is eligible CSR activity,” Sitharaman said on Twitter.
“Keeping in view of the spread of novel Corona Virus (COVID-19) in India, its declaration as pandemic by the World Health Organisaton (WHO), and decision of Government of India to treat this as a notified disaster. It is hereby clarified that spending of CSR funds for COVID-19 is eligible CSR activity,” Ministry of Corporate Affairs notified on Monday.
The MCA has said that funds may be spent for various activities related to Covid-19 under items (i) and (vii) of Schedule VII relating to promotion of healthcare, including preventive healthcare and sanitation and disaster management. The items in Schedule VII will be interpreted broadly for this purpose, according to the MCA.
Schedule VII includes funds such as the Prime Minister’s National Relief Fund and Swachh Bharat Kosh.
“Funds may be spent for various activities related to COVID-19 relating to promotion of healthcare, including preventive health care and sanitation and disaster management,” it said.
According to the Companies Act, firms with a net worth of Rs 500 crore, or turnover of Rs 1,000 crore or net profit of Rs 5 crore or more, are required to set aside 2 per cent of their average net profits over the last three years on corporate social responsibility activities.
To read the full text of the notification click here : http://www.mca.gov.in/Ministry/pdf/Covid_23032020.pdf