Chemicals and Fertilisers Minister Sadananda Gowda has asked all state-owned fertiliser companies to donate part of their CSR funds to the Prime Minister's relief fund to help fight COVID-19.
The government has set up the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM-CARES Fund) which would be utilised to deal with any emergency or distressed situation such as the coronavirus outbreak.
"In view to fight #Covid19 pandemic and to mitigate the impact of the outbreak, I have appealed to all the profit-making companies under my Ministry to donate part of their #CSR funds to PM CARES," Gowda tweeted.
In a letter to all the chairman and managing directors of fertiliser PSUs, the minister said, "Looking at the potential scale of the spread of novel coronavirus (COVID-19) and its impact on health and well being of our citizens, I urge upon you to contribute maximum possible amount of your CSR budget in the above mentioned fund so as to contribute in the nation's effort at this critical juncture. "
The minister said it is a great opportunity to utilise the unspent CSR funds of this fiscal year.
The fertiliser companies could contribute to this fund from April 2020 onwards from the anticipated CSR funds of the next financial year, he added.
The corporate affairs ministry has said contributions to the PM-CARES Fund would qualify as Corporate Social Responsibility (CSR) spending under the companies law.
Under the Companies Act, 2013 -- which is implemented by the ministry -- certain classes of profitable corporates are required to shell out at least two per cent of their three-year annual average net profit towards CSR activities in a financial year. This provision came into force on April 1, 2014.
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