MCA clarifies that spending for COVID care infrastructure is an eligible CSR activity

• MCA clarifies 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;
• States that the same fall under item nos. (i) and (xii) of Schedule VII of the Companies Act, 2013 relating to promotion of health care, including preventive health care, and, disaster management respectively;
• Further clarifies that item no. (ix) of Schedule VII which permits contribution to specified research and development projects as well as contribution to public funded universities and certain Organizations engaged in conducting research in science, technology, engineering, and medicine are eligible CSR activities;
• Further, notifies that Companies may undertake the activities or projects or programmes using CSR funds, directly by themselves or in collaboration as shared responsibility with other companies, subject to fulfilment of Companies (CSR Policy) Rules, 2014 and relevant guidelines.

Click here to read the MCA circular in this regard  GeneralCircularNo9_05052021