India Inc spending on covid healthcare considered as CSR work: Govt
The ministry has pointed out that spending of CSR funds for creating health infrastructure for covid care are eligible CSR activities.
The government on Wednesday said that spending by companies for setting up health infrastructure for covid care will be considered as CSR activities.
A week earlier, the corporate affairs ministry’s had clarified that spending for setting up makeshift hospitals and temporary covid-19 care facilities will be considered as a Corporate Social Responsibility (CSR) activity under the companies law.
The law requires a certain class of profitable companies to shell out at least 2 per cent of their three-year annual average net profit towards CSR works in a particular year.
The ministry has pointed out that spending of CSR funds for creating health infrastructure for covid care are eligible CSR activities. These may include– the 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”
The ministry also said that companies, including government ones, can undertake activities or projects or programmes using CSR funds, directly or in collaboration as a shared responsibility with other companies, subject to certain conditions.