Spending of CSR Funds for setting up makeshift hospitals and temporary COVID care facilities

Please see below the excerpt from the Circular issued by MCA on Clarification on spending of CSR Funds for setting up makeshift hospitals and temporary COVID care facilities:

 

1

Circular date

22.04.2021

2

Subject

 

Clarification on spending of CSR Funds for setting up makeshift hospitals and temporary COVID care facilities

3

Effective date

22.04.2021

4

Applicability

Companies on which CSR is applicable

    

      5

 

Brief description

 

The Ministry of Corporate Affairs (MCA) notified that Spending of Corporate Social Responsibility (CSR) funds for “setting up makeshift hospitals and temporary COVID care facilities” is an eligible CSR activity.

 

The Government has issued a notification in continuation to the Ministry’s General Circular No. 10/2020 dated March 23, 2020 wherein it was clarified that spending of CSR funds for COVID-19 is an eligible CSR activity. It has been clarified that spending of CSR funds for ‘setting up makeshift hospitals and temporary COVID Care facilities’ is an eligible CSR activity 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.

 

“The companies may undertake the activities in consultation with State Governments subject to fulfilment of Companies (CSR Policy) Rules, 2014 and the circulars related to CSR issued by this Ministry from time to time,” the MCA said.

 

Circular is attached herewith for your ready reference & reading.