 "Cos' spending on health infra for Covid will be considered as CSR: Govt")
The government on Wednesday said that spending by companies for setting up health infrastructure for COVID care will be considered as CSR activities.
The corporate affairs ministry's latest clarification comes weeks after clarifying 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.
Certain class of profitable companies are required to shell out at least 2 per cent of their three-year annual average net profit towards CSR works in a particular year.
"... 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, as per the ministry.
In this regard, the ministry, which is implementing the companies law, issued a circular on Wednesday.
The ministry also said that companies, including government ones, can undertake activities or projects or programmes using CSR funds, directly or in collaboration as shared responsibility with other companies, subject to certain conditions.
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